The on-chain metrics of the Shiba Inu token seem to be exhibiting some perplexing behavior of late. A couple of weeks ago, the second-largest meme token by market cap had recorded a significant price spike.
But, the on-chain metrics related to the SHIB token are all losing momentum currently. This is considered an unusual phenomenon for the Dogecoin rival.
This is because it is known for its frequent price fluctuations and its volatility.
The explanation
At the time of writing, the Shiba Inu token was trading at a price of $0.00001, which indicated a drop of 2% in the previous 24 hours.
This drop is in stark contrast to the uptrend that had been seen recently in the SHIB token’s trading volume and its number of transactions.
One possible explanation for this rather perplexing behavior could be related to investor behavior and market sentiment.
Since the Ethereum unlock is approaching, it is possible that traders and investors may have chosen to take a calmer approach in order to avoid any problems if there is a rise in volatility in the crypto market.
Since perceptions and emotions have a huge influence on the crypto market, it is possible that the sentiment towards the Shiba Inu token has changed.
There is also a possibility that the decline in the on-chain metrics related to SHIB could be due to the broader crypto market.
The factors
It is also important to note that since the Shiba Inu token is meme-based in nature, this leaves it vulnerable to fluctuations driven by influencers and social media trends.
This can result in huge changes in the market dynamics. Apart from that, there has also been greater focus on other meme tokens and projects recently, which could also be affecting SHIB’s on-chain metrics.
These meme tokens are those that have a higher volatility and offer more potential returns. Since new platforms and tokens continue to be established, investors could be becoming distracted.
This would also explain the decline that the on-chain metrics are showing. Nonetheless, the meme token could make a recovery as well, which would once more put it on the path of high volatility.
Shiba Eternity
A member of the Shiba Inu community, Mazrael recently revealed on Twitter that a new upgrade or patch had been delivered to the Shiba Eternity game.
The Shiba Inu CCG game was launched globally in October last year and it has received updates constantly for providing the best experience to the users.
There have been two new changes made through the latest patch, which include a new feature for login rewards and trait cards.
There had also been an update launched last month, which had delivered some major changes for improving the performance and memory of the game.