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Shiba Inu's Major Exchange Plunges to Absolute Lows Amid SHIB Price Crash

Mon, 06/12/2023 - 14:30
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Gamza Khanzadaev
Liquidity crisis hits Shiba Inu ecosystem following collapse of SHIB price
Shiba Inu's Major Exchange Plunges to Absolute Lows Amid SHIB Price Crash
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ShibaSwap, a prominent decentralized platform and vital part of the Shiba Inu ecosystem, has witnessed a significant decline in liquidity, reaching an all-time low. Recent data from IntoTheBlock reveals that liquidity on ShibaSwap has plummeted to $21.78 million, painting a worrisome picture for investors.

Liquidity Provided to ShibaSwap by IntoTheBlock

Over the past few days, the downward trend in liquidity has accelerated noticeably. This decline aligns with a corresponding 16% drop in the price of the SHIB token, which even reached a staggering 31% decline at its peak. In tandem with the token's depreciation, liquidity on ShibaSwap has experienced a 9% decrease.

The decline in liquidity can be attributed not only to the falling prices of the Shiba Inu token and its associate, BONE, but also to the withdrawal of funds from the platform. However, the primary factor responsible for this liquidity crisis seems to be the collapse in token prices.

SHIB and BONE to USD by CoinMarketCap

Particularly noteworthy is the fact that the largest liquidity pool on ShibaSwap remains the BONE pool, which is paired with Ethereum (ETH) and boasts a liquidity value of $5.69 million. SHIB follows closely in second place, also paired with ETH, with a combined liquidity of $4.98 million.

Shiba Inu (SHIB) Whale Activity Makes Dramatic Pivot After What Happened on Weekend

In addition to the liquidity slump, ShibaSwap has experienced a sharp surge in trading volumes on its decentralized exchange. On Saturday, June 10, the trading volume soared to $5.96 million, marking the highest figure since early May. This surge in activity has led to ShibaSwap collecting $17,870 in commissions within a 24-hour period.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.