Shiba Inu SHIB Price Plummets Over 30% in Summer of Shibarium, Here is Why
SHIB, Shiba Inu's native cryptocurrency, experienced a 36% price drop following the "Summer of Shibarium" announcement. Despite a surge in trading volumes and open interest, Bitcoin's price dropped by 13% and SHIB fell by 12%. Investors should be cautious before potential price drops.
Despite a promising start to the much-anticipated "Summer of Shibarium," Shiba Inu's native cryptocurrency, SHIB, has experienced a dramatic 36% price drop. This article explores the rollercoaster ride of SHIB's price, the technological advancements in the Shiba Inu ecosystem, and the market factors contributing to this decline.
What Was the Summer of Shibarium?
On July 15, Shiba Inu's official Twitter account, @Shibtoken, heralded the arrival of the "Summer of Shibarium." The announcement promised a series of exciting updates and urged the community to brace for "a splash of thrilling releases." The summer was expected to be a pivotal season for Shiba Inu, featuring the launch of Shibarium, a Layer 2 blockchain solution.
Initial Market Response
Following the "Summer of Shibarium" announcement, SHIB's price surged to $0.00000853. Although it experienced a slight correction to $0.00000756 two days later, the token soon embarked on an upward trajectory, peaking at $0.00001136 on August 12, a 50% increase.
Technological Advancements
The Shiba Inu project has been busy with numerous updates, the most noteworthy being the development of Shibarium. This Layer 2 solution aims to enhance the Shiba Inu ecosystem, which already includes a decentralized exchange (ShibaSwap) and multiple tokens (SHIB, LEASH, BONE). Shibarium is seen as a crucial step in fulfilling the project's decentralized vision.
The Downfall: Tied to Bitcoin?
However, the euphoria was short-lived. As Bitcoin's price dropped by 13% on August 17, SHIB followed suit, plummeting by 12% on the same day. The token's price fell to $0.00000725, even lower than its lowest point during the "Summer of Shibarium," marking a 36% decline.
Source: Binance
Market Indicators
On the day SHIB reached its peak, Blockchain.News reported that trading volumes and open interest showed unusual activity. SHIB's 24-hour trading volume on Binance skyrocketed over 100% to $1.32 billion, ranking third behind Bitcoin and Ethereum. In the meantime, open interest in Shiba Inu surged by over 33% to $101.65 million.
What's Next?
With SHIB currently consolidating at a price of $0.00000765 and given that historical data suggests Bitcoin often underperforms in September, the future outlook for SHIB remains uncertain. Investors should closely monitor the upward trending support line for potential price movements.
Lessons and Future Outlook
As autumn sets in, the key takeaway from this summer's events is to be prepared for the next "Summer of Shibarium" but to exercise caution and consider selling before potential price drops.
Image source: Shutterstock
