The SHIB price plunged earlier today, losing about 7% of its value at one point. It has since managed to erase some of the losses, but the tension remains as the entire market is currently in a state of decline.
The Main Reason Behind Shiba Inu’s Decline Today
Earlier today, the leading cryptocurrency exchange in India, WazirX, reported that one of its multisig wallets had been compromised. The loss amounted to more than a whopping $230 million.
A cyber attack occurred in one of our multisig wallets involving a loss of funds exceeding $230 million. This wallet was operated utilizing the services of Liminal’s digital asset custody and wallet infrastructure from February 2023.
$100 million of that was in SHIB tokens, which seems to be the major reason behind the drop from earlier today.
Because of this, tokens listed on WazirX, including SHIB, BTC, and even the USDT stablecoin, traded at a considerable discount against the INR compared to their global and even local prices. This signals liquidity troubles and increased selling pressure.
What’s Next for the SHIB Price?
As CryptoPotato reported earlier today, despite the price plunging, some other important metrics increased in stark contrast.
For instance, the burn rate soared by 450%, which was likely caused by the increased volatility. Nevertheless, it leads to more SHIB tokens being taken out of circulation, which is ultimately a positive factor for the remaining coins, price-wise.
Meanwhile, Shiba Inu whales are also on a shopping spree. According to IntoTheBlock, the aggregated daily volume for transactions over $100K soared to $900 million, representing an increase of 1800%.
Other metrics associated with the protocol’s Ethereum layer-two scaling solution – Shibarium – are also on the rise.
All in all, Shiba Inu seems fundamentally unphased despite the turmoil caused by the WazirX fiasco. For more updates, please check out our Shibarium news.
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