Investors are finally losing faith in the Shiba Inu’s long-term decline.
If you are still holding Shiba Inu, then you need to feel the heat. Losses are expected to increase, especially if you bought the coin in the fourth quarter of 2021. This is because the Shiba coin plunged straight into 2022. In fact, cryptanalysts predict that the Shiba Inu trend has fallen by 80% relative to the coin. ATH. The bad news is that Shiba Inu may continue to decline over the next few months, especially if the bear market continues. This is due to observing previous bear market conditions where Shiba Inu was one of the biggest losers. In fact, Shiba’s price is currently down 53% from the past 30 days due to the current bear market. The main reason the Shiba Inu trend is down is the number of mounts they are selling. However, the sheer number of Shiba whales sold is why the currency is falling.
In 2021, Dogecoin killer Shiba Inu was in the spotlight. Shiba Inu is an altcoin created by a pseudonymous entity called Ryoshi in August 2020. Like many other cryptocurrencies, the Shiba Inu name was inspired by a dog breed. According to his white paper, known as “woof paper” in the SHIB community, the founder launched Shiba Inu on Ethereum because the blockchain is well established and secure. SHIB has seen a huge growth of nearly 700% since the start of the second quarter of 2021 and has been seen rivaling Dogecoin, whose interest value has increased tremendously following the intervention of tech giant Elon Musk. But this rally ended due to the sudden market crash in late 2021, which left investors wondering if they should have bought, held or sold Shiba Inu under these conditions.
The problem lies in the basics of Shiba Inu
At the end of the day, demand is heavily influenced by fundamentals. And the fundamentals of Shiba Inu are still quite weak. As a token on the Ethereum network, SHIB does not have the same design flexibility as other large cryptocurrencies, which makes it suffer from the challenges of the Ethereum network, such as sky-high fees, which can go as high as $ 30 per transfer. Shiba Inu developers will have to wait until the expected Ethereum update (called the consensus level) to solve these challenges. And it’s unclear when it will launch. Meanwhile, Shiba Inu is looking to expand its capabilities through new projects like Shiberse, an immersive metaverse experience for the SHIB ecosystem. In February, the developers announced Shiba Lands, which will be a virtual real estate available for purchase. But land can only be purchased using a token called Doge Killer (CRYPTO: LEASH), which is not the same as SHIB. And it’s unclear whether this metaverse project will drive SHIB demand, as well as generate hype.
Online fame may not be all that real
Shiba Inu sponsors have carefully planned an online community that focuses on trading and promoting related cryptocurrencies and NFTs. Now, they have taken it one step further in an attempt to limit SHIB’s supply and increase its market value. Community members destroyed over 239 million and 400 million tokens in December and November respectively. But no matter how many tokens they burn, demand continues to decline at a potentially higher rate, causing the market to collapse. Shiba Inu is an ERC-20 token built on the Ether blockchain. While this makes it interoperable with the Ethereum network, as well as with DApps running on it, SHIB is limited by the limitations of the larger blockchain. And for a programmable blockchain that uses smart contracts like Shiba Inu, it’s about bringing more developers into the ecosystem. Several incidents have been reported that revolve around the speed, scalability and accuracy of the network. Major cryptocurrencies such as Bitcoin, Ethereum and Solana, just to name a few, have disrupted the global economic and financial ecosystem. For a currency to have long-term legitimacy, there must be real-world utility. But when it comes to Shiba Inu, the coin hasn’t come a long way. Shiba is far behind in the DApp market, like Uniswap, OpenSea and Axie Infinity, in terms of use cases and implementation.
Many cryptocurrencies threaten to replace fiat currencies. But there is still no evidence or speculation that the Shiba Inu will face institutional adoption in the next few years. For the