In August, altcoins continued to face strong corrections alongside Bitcoin. However, some are showing signs of recovery, especially Shiba Inu (SHIB) and Litecoin (LTC).
The Future of Shiba Coin
The launch of Shibarium faced major disruptions due to a 30% correction in the price of Shiba Inu (SHIB) from its peak. As of the time of writing, Shiba Inu (SHIB) is trading at $0.0000079 with a market capitalization of $4.7 billion. On the other hand, a positive development has been the recent withdrawal of a large number of SHIB coins from exchanges. Over the past week, more than 2 trillion SHIB coins were withdrawn from exchange wallets.
From August 17th to August 26th, Shiba Inu holders withdrew 1.8 trillion SHIB tokens, equivalent to $14.5 million at the current market value of $0.000008 per token. This amount exceeded 10% of Shiba Inu’s average trading volume last week, which is remarkable.
This situation highlights the possibility of another supply crunch that could have a significant impact on the price of SHIB. If concerns about Shibarium decrease and there is an increase in market demand, this could become a very important development for the SHIB price.
The Current Situation of Shiba Inu and Litecoin
However, one thing to note is that market demand for Shiba Inu (SHIB) is still neutral. The given graph shows a decrease in daily Active Addresses on the Shiba Inu network since August 16th. As of August 26th, this number reached 3,647, indicating a 56% decrease compared to the 8,214 active addresses observed on August 16th. Active addresses can be considered as a measure of daily individuals engaging in economic transactions on a blockchain network. As a result, the number of investors using SHIB for transactions has significantly decreased.
Alongside SHIB, Litecoin seems to have gained stable support after its correction following the halving. Popular crypto analyst Ali Martinez states that a total of 215,000 addresses bought 3.81 million LTC between $63.22 and $65.19, suggesting that the price of Litecoin is likely to rise to $75 in the near future.
