Shiba Inu (SHIB), like most cryptocurrencies, performed well in the last two weeks of September. Particularly, SHIB registered a 63% increase in 10 days, which saw its price go from a low of $0.00001304 on September 18 until it reached a three-month high of $0.00002133 on September 28. However, the meme coin has corrected noticeably since then. At the time of writing, SHIB is trading at $0.00001853, representing a fall of about 13% from the September peak. Some could see this correction as the beginning of a stronger decline, especially with some metrics showing signs of more declines.
Are SHIB Metrics Turning Bearish?
Shiba Inu’s recent correction cannot be overlooked, especially since it is the second-largest meme coin by market cap. This correction has come amidst a decrease in activity in the Shiba Inu ecosystem. Data from Shibarium, Shiba Inu’s layer-2 scaling solution, shows activity has decreased considerably since the height of the price increase on September 27. This decrease in activity is reflected through the daily transactions on the network, the rate of creation of new accounts, and the average transaction fee, which have all dropped by at least 50% since then.
For example, the new accounts, which tracks the number of newly added accounts, registered 893 new accounts created on Shibarium on September 27. However, this figure fell to 470 new accounts on September 30, even reaching as low as 20 new accounts on September 29.
Similarly, the number of daily new transactions, which stood at 11,228 on September 27, ended the month at 6,826, representing a decline of about 40%. Consequently, the lower activity led to a decline in the amount collected as transaction fees on Shibarium. Particularly, the sum of BONE spent on gas fees was 18.715 BONE on September 30, representing a 95% fall from the 438.797 BONE spent on September 25.
According to IntoTheBlock data, the number and value of large SHIB transactions have also declined considerably. Large SHIB transactions are those with a value of $100,000 or greater. The large SHIB transaction volume in USD stands at $111.11 million in the past 24 hours, representing a 34% fall from September 26. However, it is important to note that this figure remains well above a seven-day low of $26.98 million.
Is A Shiba Inu Price Crash Coming?
Although the metrics noted above point to decreased activity, this doesn’t necessarily translate to a continued decline in the SHIB price. The crypto market is still in a bullish mood leading up to October, and analysts are forecasting the resumption of a rally and bullish price targets for SHIB in the coming weeks. One compelling factor supporting a bullish outlook is the recent sharp increase in the SHIB burn rate.
