Shiba Inu's layer 2 blockchain, Shibarium, saw a 74% increase in transactions in the last 24 hours while the wider Shiba Inu ecosystem was quiet. According to Shibarium Scan data, Shibarium's daily transaction count surged from 661 on July 21 to 1,151 on July 22, a 74% increase. While the jump is small, it is nevertheless significant as the $SHIB price awaits a bullish market catalyst.
The crypto market is consolidating on Thursday, with the majority of crypto assets, including $SHIB, in the red. At the time of writing, $SHIB was down 1.54% in the last 24 hours to $0.000004166 and is about to erase weekly gains, up just 0.51% in the last seven days. Shiba Inu is down 23% so far in July, marking negative weekly closes in the month.
The current price action reflects a market catching its breath. After failing to surpass $0.0000043, the path of least resistance for Shiba Inu in the short term appears to be sideways rather than sharply in either direction.
Market awaits catalyst
In a recent analysis, Santiment noted that large cap crypto volumes have been consistently fading since July 2024, with trading activity now sitting near its weakest average levels in two years.
According to Santiment, this isn't just boredom, but it reflects a market where many traders have stopped rotating aggressively after repeated sell-offs, weaker spot demand, and lower confidence in altcoin follow-through.
The decline in interest might be justified given that macro pressure has stayed heavy, risk appetite cautious, and traders less eager to chase. When the crowd avoids aggressive altcoin bets, volumes dry up and then social energy usually follows.
For future market values, low volume might have two implications: first, it can make rallies easier to fade when demand is missing. Second, it might lead to a cleaner setup being formed once sellers are exhausted. In this scenario, a modest return of spot buying can move prices faster when liquidity is thin.