Shiba Inu, the second largest memecoin and the 15th largest crypto asset by Market capitalization has dropped over 7% of its price value following an unfortunate hack on India’s leading crypto exchange.
Following the dip in price analysts fear the price could go lower despite Shiba Inu slightly erasing some of the dip since the incident occurred.
Shiba Inu was affected by the $230 million hack on India’s WazirX because over $100 million of the stolen assets were in Shib tokens. This led to a dip in the price of the asset since the incident occurred.
The WazirX team has come out twice to address its community after the hack on their platform. The first address was a preliminary one urging the community to remain calm and patient while they sort out what transpired.
The second address was a detailed statement on their findings following their investigation of the hack on their platform.
They stated that the hack was a force majeure event beyond their control, but they are leaving no stone unturned to locate and recover the funds.
The WazirX team has already blocked a few deposits and reached out to concerned wallets for recovery.
Shiba Inu tokens and other tokens listed on WazirX traded at a discount against the Indian local currency lower than their global and local prices. This created liquidity problems resulting in an increase in selling pressure.
It is not all negative news for Shiba Inu following its price dip. Some positive metrics for the crypto asset signalled that the asset could bounce back.
The Burn rate for Shiba Inu soared by 450% most likely caused by increased volatility. This leads to more Shib Tokens taking out of circulation thereby boosting the price of the remaining coins.
Shiba Inu whales seem to be buying the dip too as data from Into the Block revealed that the aggregated daily volume for transactions over $100K soared to $900 million, representing an increase of 1800%.
The metrics surrounding Shiba Inu protocol’s Ethereum layer-two scaling solution Shibarium are also in positive numbers meaning that the price dip for Shiba Inu might not last
What to Know
- The Hackers of WazirX have offloaded all their Shiba Inu tokens according to Arkham intelligence data. Over $100 million worth of Shiba Inu offloaded would adversely affect the price of Shib tokens in the market.
- Shiba Inu is currently trading at the price of $0.00001724 at the time of the report. The meme coin is a dog inspired meme coin and belongs to the same category as Dogecoin, the leading memecoin based on market capitalization.