Meme Coin Analysis: Top 3 Reasons Shiba Inu Price is Crashing
Zafar Naik5 Jul 20242 min read
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, Shibarium’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.
Similarly, ShibaSwap’s assets have also fallen to $18.97 million from almost $2 billion at their peak in 2021.
Future Outlook: Not An Easy Road Ahead!
Shiba Inu’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.
