Shiba Inu (SHIB) has faced challenges in maintaining the level of liquidity it once enjoyed. In recent weeks, the coin has shown minimal volatility, leaving many investors wondering about its future direction.
However, despite the apparent inactivity, many indicators point to the possibility of a significant price movement in the near future. With the road ahead for SHIB looking rather constrained, it raises the question of where the coin might go next and what potential opportunities or hurdles lie ahead.
Shiba Inu (chip) liquidity problems
During the peak of the bull market of 2021, Shiba Inu (SHIB) emerged as a prominent player, topping price hikes that garnered a lot of attention. As a result, ShibaSwap, the decentralized exchange linked to SHIB, saw a surge in total value locked (TVL), reaching $1.75 billion.
However, the previously high TVL has been a massive hit, dropping to just $25.16 million, according to devilama. At first glance, this dramatic decline in TVL may raise concerns about a potential liquidity crisis. However, a closer examination indicates that this situation may be temporary rather than a long-term stalemate.
Recent data indicates a significant increase in SHIB purchases across different time periods, and a closer look at the portfolio data reveals a mixed picture, with some bands showing an increase in holdings while others a decrease.
SHIB total market cap currently at $5.1 billion on the daily chart: TradingView.com
SHIB’s investors are confident in the long-term potential
When analyzing data on string, Santiment scheme It reveals a remarkable pattern among SHIB token holders. Specifically, investors with SHIB holdings ranging from 1 to 1,000,000 tokens have shown a steady increase in their balances. This upward trend indicates that a large segment of the retail group holds a certain degree of faith in the long-term performance of this meme-inspired cryptocurrency.
Network usage data also highlights a Decrease in daily transactionsdropping from an average of 7,000 to around 3,500. However, this is not necessarily an indication of an impending emergency. Alternatively, this could be part of a larger phase of token stabilization, as holders await a price recovery.
7/10 Also notable is the network usage data – daily transactions have halved from an average of 7k to 3.5k. This decrease may indicate a decrease in interest in #SHIBWhich adds weight to the liquidity crisis theory.
– U.Today (@utoday_en) June 2, 2023
Given the current state of stagnant price and low volatility, the likelihood that SHIB is poised for a major price shift seems high. This possibility has caught the attention of investors who are watching the market closely for any upcoming developments.
Source: Coingecko
chip price on Queen Gekko It is currently at $0.00000855 and is witnessing a slight decrease of 1.0% in the last 24 hours and a decrease of 3.1% over the past 7 days.
Featured image from Perfect Dog Breeds