News
  • Zafar Naik
    author-profile

    Zafar Naik right arrow

    Author

    Zafar is a seasoned crypto and blockchain news writer with four years of experience. Known for accuracy, in-depth analysis, and a clear, engaging style, Zafar actively participates in blockchain communities. Beyond writing, Zafar enjoys trading and exploring the latest trends in the crypto market.

    • 2 minutes read

    Meme Coin Analysis: Top 3 Reasons Shiba Inu Price is Crashing

    Story Highlights
    • Shiba Inu price has crashed 70% this year, reaching a new low.

    • Newer meme coins are stealing the spotlight with higher trading volume.

    • The next few days will be critical to see if Shiba Inu can recover.

    This crypto doggy continues to dig a deeper hole for itself!

    Shiba Inu’s price continues its downward spiral, marking its third consecutive day of decline and hitting a new low of $0.00001271. This is the lowest point since March 1st, representing a staggering 70% drop from its highest value this year. This meme coin has underperformed major cryptocurrencies like Bitcoin and Ethereum.

    What’s behind this (epic) fall? Dive in to find out.

    Rising Fear in the Crypto Market

    The fall in SHIB’s price can be attributed to growing fear within the crypto industry. The Crypto Fear and Greed Index has plummeted to 29, its lowest level since November last year. Various factors, both within and outside the crypto sphere, have contributed to this decline. For instance, Bitcoin balances on exchanges have surged following news about the German government and Mt. Gox repayments.

    Weak Fundamentals

    Another significant factor in SHIB’s price drop is its weak fundamentals. Recent data indicates a decline in demand for SHIB. On many days, its trading volume has been overshadowed by newer meme coins like Pepe and Dogwifhat. Currently, Shiba Inu’s trading volume stands at $500 million, while Pepe and Dogwifhat boast volumes of $1.3 billion and $913 million, respectively. Other meme coins, such as Floki and Bonk, are also experiencing higher volumes than SHIB.

    Shibarium Network’s Struggles

    The Shibarium network, integral to Shiba Inu, is also facing challenges. According to DeFi Llama, Shibariumโ€™s Total Value Locked (TVL) has plummeted from a year-to-date high of $4 million to $1.39 million. All dApps on Shibarium, including WoofSwap, ChewySwap, Marswap, and DogSwap, have seen their TVL decrease by over 40% in the past 30 days.

    Source: defillama

    Similarly, ShibaSwapโ€™s assets have also fallen to $18.97 million from almost $2 billion at their peak in 2021.

    Source: defillama

    Future Outlook: Not An Easy Road Ahead!

    Shiba Inuโ€™s current predicament mirrors broader market trends and specific challenges within the SHIB ecosystem. The coming days will be critical for the future of this meme coin as it navigates these turbulent waters.

    The decline of Shiba Inu highlights the volatility and unpredictability of the crypto market, reminding investors of the inherent risks involved. As SHIB faces these challenges, its ability to recover and stabilize will be closely watched by the crypto community.

    Read Also : 3 meme coins for up to 2000% gains

    Thinking of investing in SHIB? Do your research and understand the current market climate. Remember, the crypto world is full of surprises.

    Show More

    Related Articles

    Back to top button