As the correction develops, gloomy predictions about the fate of certain coins are increasingly heard on the cryptocurrency market. This time, the Finder agency issued a warning about the imminent demise of SHIBA INU and a decrease in interest in the entire class of meme cryptocurrencies.
In the best months, SHIB provided investors with 1000% profitability, and the capitalization of the network at its peak exceeded $ 40 billion. From the highs, the coin has “lost weight” almost eight times, and even the approaching listing on the sensational Robinhood (NASDAQ:HOOD) site does not cause a bullish impulse. But the petition asking to add SHIB has gained over half a million signatures.
As explained in Finder, the death of SHIB is a question from the “when” section, not “if”. The cryptocurrency market is going through a natural evolutionary path, and investors are increasingly choosing tools that carry practical utility or have value. The time is passing when traders bought hundreds of assorted coins in the hope that some of them would show a crazy increase. And the main interest in SHIB – a comic coin – is just formed under the influence of emotions, and is not based on a dry calculation.
This is confirmed by the analysis of the factors leading to price spikes.
The crypto experts interviewed by Finder called the leading force for SHIB “hype” and mentions of media personalities. For example, on March 14, 2021, Elon Musk wrote a tweet about his desire to get Shiba Inu, only later explaining that he meant a dog of this breed. However, information about the coin quickly spread in social networks, which showed a 300% increase in a few days.
SHIB was built with an eye on Dogecoin, and the initial goal of the project was to achieve the same capitalization. Last fall, the goal was achieved, since then the coin continues to lose to its predecessor.
Unlike Dogecoin, SHIB is just an ERC-20 token issued by an anonymous person in the amount of 1 quadrillion. Such a large issue is caused by the desire to ensure a low cost of the coin to attract as many investors as possible.
The developers recently launched a decentralized exchange, and SHIB got its own burning mechanism. However, this did not help: the volume of blocked funds in ShibaSwap continues to decline and currently amounts to less than $60 million. Finder estimates that by the end of 2025, SHIB will cost $0.0000025 or five times cheaper than the current cost.