Following a brief post-Shibarium relaunch rally, Shiba Inu (SHIB) prices have retraced to their pre-Shibarium levels, losing nearly 10% of their value. On August 28, SHIB surged to $0.0000084 when Shibarium, a layer-2 solution for the Shiba Inu ecosystem, reopened its bridge.
This increase in value was fueled by an uptick in demand, as data from Santiment showed a 16% rise in daily active addresses completing SHIB transactions and a 19% increase in new addresses created for SHIB trading between August 28 and 31.
However, interest in SHIB started to diminish on August 31, and demand subsequently dropped. This decline in interest correlates with the sharp decrease in the daily ratio of SHIB’s on-chain transaction volume in profit to loss, which reached a high of 3.99 on August 31.
This ratio indicates that for every SHIB transaction incurring losses, 3.99 transactions were profitable. However, by September 1, the ratio plummeted to 0.30, suggesting that more transactions were incurring losses than making profits.
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