Shiba Inu’s overall market cap has fallen to $11.35 billion, from around $29 billion at its peak. However, because of its low cost, its trading volumes remain healthy.
The crypto crisis is causing several coins to lose their luster, including Shiba Inu, which was once in the top ten digital tokens but is now struggling to remain in the top 15.
At 13.30 IST on Thursday, the dog-based meme token, also known as the joke token, was trading at 0.00002008. The token reached an all-time high of $0.00008 in late October 2021.
After Bitcoin’s price dropped to a six-month low, all cryptocurrency prices dropped, including the Shiba Inu, known as the “Dogecoin Killer.”
Shiba Inu’s total market value has dropped to $11.35 billion. During its early days, it was worth up to thrice what it is now. However, due to its low price, the token’s trading volumes have steadily improved.
Shiba Inu is based on the Ethereum blockchain and does not have its own blockchain. Shiba’s circulating quantity is extremely limited, which makes the meme token a high-risk investment.
Raj Kapoor, Founder & CEO of the India Blockchain Alliance said:
“Holding by only a handful of wallets; limited adoption among merchants; and a fuzzy development future could put this dog coin in hibernation…About two-thirds of SHIB tokens’ total available supply is held by 10 wallets…Even Shiba’s audit report posted on its website shows that more than half of its available supply is held in four wallets.”
According to Coinmarketcap, there is a total supply of 589,735,030,408,323 SHIB tokens, with 549,063.28 billion available for circulation on the market.
Shiba has a limited number of usable applications right now, and it’s struggling for scraps even as a payment option. It’s impossible to say whether SHIB developers will continue to contribute value.
As per market experts, Shiba Inu is a high risk investment that does not meet any of the requirements for solid foundations. They also say that investors should stay away from it.
Meme tokens like Shiba Inu will swing drastically with market sentiments due to their lack of real value and utility use-cases, according to Praveen Kumar, founder and CEO of Belfrics Group, a crypto exchange.
According to Sharat Chandra, VP-Research & Strategy, EarthID, a self-sovereign Identity Management Platform, Shiba Inu has remained weak recently, and its price has fallen in lockstep with other coins, including Dogecoin.
He also stated that “The Shibarium blockchain layer-2 solution proposed by the SHIB creator Ryoshi is expected to launch soon and it can give a price boost in the coming days”.
Due to the recent drop in the last month, the Shiba Inu investment community has maintained a solid trading volume.
Nitish Sharma, the Global CEO of TP Global FX, Shiba Inu is falling because the entire cryptocurrency industry is in a bear market. “Cryptocurrency is like any other trading market in that there will be a bear and a bull market.”
