After showing strong trading volume despite a decline in price throughout 2022, Shiba Inu experienced a reversal of fortunes in 2023, with its trading volume hitting a low point for the first time this year. On Wednesday, SHIB’s average 24-hour trading volume reached $119 million, marking a four-month low and indicating a lack of momentum in the market.
What’s Behind Shiba Inu’s Declining Trading Volume?
Overall Price Stagnancy
The low trading volume in cryptocurrency markets might be due to the market’s lack of excitement and energy. The prices of popular cryptocurrencies like Bitcoin and Ethereum have remained stagnant, not showing any signs of a potential surge. Even though Bitcoin briefly reached $30,000 and Ethereum is close to $2,000, the overall mood turned pessimistic when both coins experienced price decreases.
SHIB holders tend to invest more when the cryptocurrency market is doing well because it creates a sense of community. However, when there is no activity, investors become cautious and fear buying in at a lower price, thinking that it might drop even further. As a result, the daily ‘burns’ of SHIB tokens have been stagnant and not surpassing 1.5 million tokens per day.
related article: Shiba Inu: Huobi Lists BONE Token Ahead of Shibarium Launch
Lack of Enthusiasm
Shiba Inu has a large group of enthusiastic investors whose energy is reflected in the cryptocurrency’s price, which reached $0.00001039. However, the community’s enthusiasm declined when the release of the Shibarium layer-2 solution was delayed, causing division within the community and a decrease in excitement. If the team announces a launch date for Shibarium, it could spark a new wave of buying activity. Until then, investors’ enthusiasm will likely remain low, leading to a decrease in investment activity.
At press time, Shiba Inu was trading at $0.00001042, up 2.07% in the 24-hour day trade. SHIB is down 87.88% from its all-time high of $0.00008616, which it reached in October 2021.