Shiba Inu's layer-2 network, Shibarium, has achieved a significant milestone by surpassing one billion transactions since its launch in August 2023. This accomplishment highlights the network's growing adoption and robust performance, processing over 10 million blocks without major outages.
Despite this impressive network activity, the price of Shiba Inu ($SHIB ) has not reflected similar positive momentum. Over the past week, $SHIB has experienced a decline of approximately 9.4%, with the current price hovering around $0.00001210.
Several factors may contribute to this price stagnation:
1. Market Sentiment: The broader cryptocurrency market has faced bearish trends, impacting various digital assets, including $SHIB .
2. Supply Dynamics: While Shibarium's increased activity supports the SHIB burn mechanism, the overall token burn rate has seen fluctuations. Notably, there was a 60.65% decline in the burn rate despite the transaction milestone, potentially affecting price dynamics.
3. Investor Behavior: Long-term holders, often referred to as "diamond hands," control over 80% of SHIB's supply. This concentration suggests a belief in SHIB's potential but may also lead to reduced market liquidity and price volatility.
In summary, while Shibarium's achievement of one billion transactions underscores the network's growing utility, external market conditions and internal supply factors have contributed to SHIB's recent price stagnation.