Shiba Inu, once a popular meme coin, has seen its price plummet as demand wanes and newer tokens capture the attention of traders. The SHIB token is currently trading at $0.000017, marking a significant drop of over 60% from its peak earlier this year. This downward trend has been exacerbated by the underperformance of Shiba Inu compared to other meme coins like Dogecoin.
One key metric that highlights Shiba Inu’s decline is its daily trading volume. Data from CoinGecko reveals that Shiba Inu’s volume in the past 24 hours was just over $297 million, while Dogecoin boasted a volume of $635 million. Surprisingly, Pepe, a meme coin with a smaller market cap, surpassed both Shiba Inu and Dogecoin with a trading volume exceeding $1 billion in the same period. Additionally, other meme coins such as dogwifhat (WIF), Floki, and Bonk also outperformed Shiba Inu in terms of trading volume.
The lackluster performance of Shiba Inu can also be attributed to the failure of Shibarium, its recently launched layer-2 network, to gain traction among investors and developers. With only 14 DeFi developers onboard and a total value locked (TVL) of just $1.69 million, Shibarium pales in comparison to other layer-2 networks like Blast, Sui, and Base, which have amassed billions in assets.
From a technical standpoint, Shiba Inu’s price chart indicates further downside potential for the token. It has dipped below key support levels and is currently trading below both the 50-day and 200-day moving averages. If this downward trend persists, a death cross formation could occur, signaling a bearish outlook for Shiba Inu.
However, there is still hope for a potential rebound in Shiba Inu’s price. A broader recovery in the crypto market, similar to the one witnessed in March when Bitcoin reached its all-time high, could lift SHIB and other altcoins. Additionally, the approval of Ethereum and Solana ETFs by the SEC could pave the way for a spot SHIB ETF, potentially boosting investor interest in Shiba Inu.
In conclusion, Shiba Inu’s price decline and underperformance compared to other meme coins reflect the shifting dynamics within the crypto market. While challenges persist, there are potential catalysts that could spark a revival in Shiba Inu’s fortunes, provided market conditions and regulatory approvals align in its favor.