The hype around meme cryptocurrency Shiba Inu appears to be cooling down with the token recording a significant drop in transactions.
In November, the transactions plunged 42.27% to 802,183 from October’s all-time high of 1,389,574, according to data provided by crypto intelligence platform Bloxy.
It’s worth noting that the number of transactions recorded one of the most significant jumps between September and November at 363.33% from 0.3 million to 1.39 million (rounded figures). Another notable figure was recorded in May at 1.2 million.
SHIB experiences volatility in November
The drop in transactions correlated with SHIB’s price plunge in November. During the month, the value of the coin dubbed ‘Dogecoin killer’ dropped by at least 25%.
Consequently, the drop in price points to a possible low interest in the asset. Notably, with the coin hitting an all-time high in October, the number of transactions also peaked as more investors possibly wanted to get involved amid the fear of missing out.
Amid the volatility, about 70% of Shiba Inu holders have maintained positive gains on their holdings.
Despite the general market correcting, SHIB began experiencing high volatility from early November after a whale made four transactions of 10,000,000,100,000 SHIB each to four different wallets. Each transaction was approximately $586 million, totaling about $2.3 billion at the time.
Therefore, the number of people intending to get involved in the asset dropped over the fear of the impact of the whale. Generally, whale activity usually prompts concerns in the community that the large holders might be preparing to sell their tokens.
With whales owning a large percentage of the supply, any liquidation could potentially result in a massive price plunge. Such movements usually result in downward pressure on the price.
Additionally, the drop in transaction numbers can be interpreted as investors taking profits amid the record price in October. Some crypto analysts have argued that SHIB investors do not have the long-term conviction to hold the coin for long. Therefore, they cashed out in masses during the all-time high.
Despite the plunge in the transaction, SHIB also hit a major milestone in November. As previously reported by Finbold, the coin on November 25 surpassed the one million holder mark.
Although SHIB has initially received criticism over the lack of use case, the token continues to receive validation with listing on the top ten major cryptocurrency exchanges. The coin earned the latest listing on the Kraken exchange.
At the same time, the tokens’ popularity grew after venturing into the non-fungible token. The token teamed up with game creator and former Vice President of Technology at Activision William David Volk to consult on its play-to-earn NFT game.