The Shiba Inu (SHIB) cryptocurrency has been a subject of interest among many cryptocurrency investors since its launch in August 2020. It was designed to be a decentralized, deflationary, and community-driven cryptocurrency. However, after a massive upswing in 2021, the coin has dropped significantly in value, leading many to question whether Shiba Inu crypto is dead.
The answer to this question is not so simple. The truth is that the Shiba Inu token has seen a significant decrease in value since its price peak in late 2021. According to our data, the token’s all-time high was on October 28th, when it traded for $0.00008819. Since then, its value has dropped to a low of $0.00000723 on June 18th, 2022. This is a decrease of roughly 90%, making it one of the worst-performing cryptocurrencies in that time frame.
However, it would be incorrect to say that Shiba Inu crypto is dead. Despite its sharp decline in price, the token still has a loyal following, calling themselves the “Shib Army”, and regularly clears hundreds of millions of dollars in daily trading volume. Additionally, the token has become nearly as popular as Dogecoin (DOGE), the original meme coin that launched all the way back in 2013.
It is also important to note that the Shiba Inu token continues to be used as a form of payment on the Ethereum (ETH) network, and it is expected to become more widely accepted in the near future. Additionally, the token’s deflationary nature suggests that it is likely to become more valuable over time.
Ultimately, the answer to the question “Is Shiba Inu Crypto Dead?” is no. While the token has seen a significant drop in value since its launch, it still has a loyal following, is actively traded on several exchanges, and is expected to become more widely accepted in the near future. Therefore, it is safe to say that Shiba Inu crypto is not dead and is likely to rebound once the bears release their grip on the crypto market.
Why is Shiba Inu Down?
Over the past year, the price of Shiba Inu has dropped significantly, which can be attributed to several factors. Firstly, it can be argued that the novelty of Shiba Inu, and meme coins in general, has worn off. A part of the investors who were attracted to the coin initially, when the hype was at its highest, have since moved on to other cryptocurrencies, which has reduced the demand for Shiba Inu.
Secondly, the coin has been affected by the general market trend. The cryptocurrency market has been volatile in the past year, with prices dropping significantly in 2022. This has affected all cryptocurrencies, including Shiba Inu, which has seen its price drop in line with the general trend.
Thirdly, the coin has been affected by market speculation. Investors have been speculating about the future of Shiba Inu, which has led to volatility in the price. This has caused the price to fluctuate, leading to a significant drop in price over the past year.
Crypto-specific Reasons for the Shiba Inu Crash
Shiba Inu was a highly volatile cryptocurrency that experienced a sharp decline in price in 2022. This crash was caused by a number of crypto-specific reasons, including the collapse of Terra in May, the FTX meltdown in November, and the market’s negative reaction to SHIB’s high inflation rate, which is making many investors wonder whether deflationary aspect of Shiba Inu tokenomics will ever kick in.
Macroeconomic Reasons for the Shiba Inu Crash
The crash of Shiba Inu was also due to macroeconomic factors. These included the overall decline in the cryptocurrency market, a lack of investor confidence due to the lack of regulatory clarity, and a general decrease in demand for digital assets and other risk assets in general. Furthermore, the rise of the US dollar also played a role in the crash, as it decreased the purchasing power of other fiat currencies, and made the pool of potential investors a bit smaller. Not to mention, the high interest rates, energy crisis, and multi-decade high inflation that are ravaging the economies around the world.
Does Shiba Inu have a Future?
Shiba Inu is a relatively new cryptocurrency that has gained a lot of attention in the cryptocurrency world. It has been compared to Dogecoin, and its price has shown a tendency to skyrocket within short periods of time. But does Shiba Inu have a future?
The short answer is that yes, Shiba Inu has a future. It is a decentralized cryptocurrency, meaning it is not issued by a single company or entity. This makes it a more secure and reliable form of digital currency. It also offers users a variety of features, such as low transaction fees, fast transaction times, non-fungible token (NFT) capabilities, and soon, thanks to the rollout of the Shibarium layer 2 solution, even more robust scalability than before.
As for Shiba Inu’s price prediction, it is difficult to say for certain. The price of any cryptocurrency is subject to market forces and unpredictable events. That said, Shiba Inu increased over 630,000% since it first started trading in 2020. It is also worth noting that Shiba Inu has a high level of liquidity, meaning it is easy to buy and sell on most cryptocurrency exchanges.
Overall, Shiba Inu is a digital currency with a lot of potential. It has a decentralized structure, low transaction fees, fast transaction times, and one of the most robust and engaged communities in the crypto space. Therefore, it is not too much of a stretch to say that it is worth considering investing in Shiba Inu as part of a diversified cryptocurrency portfolio.
David is a crypto enthusiast and an expert in personal finance. He has created numerous publications for different platforms. He loves to explore new things, and that’s how he discovered blockchain in the first place.
