3 Reasons Why Shiba Inu (SHIB) May Plunge This Month
July and August have been quite successful for the self-proclaimed Dogecoin killer, with its price closing both months in the green.
Nonetheless, certain important elements suggest that September may not be as beneficial and could deliver a move south.
The Worrying Signals
The first concerning element on the list is Shiba Inu’s burn rate, which has declined by 6% on a monthly scale. Data shows that less than 600 million tokens have been sent to a null address throughout August, an amount whose USD equivalent is negligible.
The burning mechanism aims to reduce the overall supply of the meme coin and potentially make it more valuable, but little to no activity on that front poses a serious obstacle to that mission.
Next is Shibarium’s stalled activity. The layer-2 scaling solution was exploited last year, and since then, the number of processed daily transactions has dropped to mere hundreds or even thousands (at most).
The feature has been labeled numerous times as important for the overall advancement of Shiba Inu’s ecosystem and something that can positively impact its price.
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