Several crypto coins are losing their luster due to the recent crypto crisis. Shiba Inu is one such example, which was once among the top 10 digital tokens but is now struggling to stay in the top-15.
The value of the dog-based meme token, also known as the meme token, has dropped by about 75% since its peak of $0.00008 in late October 2021. At 20.11 IST on Monday, it was trading at 0.00002090.
Shiba Inu, dubbed as ” the Dogecoin Killer,” is losing its allure. After the price of Bitcoin dropped to a six-month low, the price of all cryptocurrencies dropped as well.
Last month, Shiba Inu (SHIB) was listed on the commission-free investment platform Robinhood. More than $1 billion poured into the digital asset in less than an hour of the launch. It indicated that crypto traders were anxious to purchase the digital asset. However, the most recent data shows that the dog meme cryptocurrency is witnessing its lowest transaction volume in more than a year.
Despite being listed in the same month as the DeFi meme token, the token’s transactions dropped by about 70% in the first quarter of 2022 compared to the previous quarter, marking the largest reduction in transactions since March 2021.
Data from the blockchain analytics website bloxy.info shows that in April of 2022, the total number of SHIB transactions was 216,260, down from 329,893 in March and the greatest fall since March 2021, when the overall transaction count was 37,369 For the first time since March 2021, the overall number of SHIB transactions fell to 216,260 in April 2022.
Is Hype Around SHIB Waning?
Notably, the total number of SHIB transactions had reached an all-time high of 1,389,603 in October 2021. It highly contradicts its situation as of April.
ApeCoin and Dogecoin, two of the most popular meme coins, have competed with Shiba Inu over the last month. ApeCoin hit an all-time high while Elon Musk was still negotiating a deal with Twitter. Whereas, Dogecoin surged from $16.56 billion to $18.64 billion in one hour as the cryptocurrency’s hype grew.
Still in Top 5 Searched Cryptocurrencies in the US
Even though Shiba Inu is still America’s fourth most searched cryptocurrency, the number of holders is declining. The latest on-chain data suggests that a shift in the market is taking place, especially in a volatile crypto market where many investors might consider that SHIB has experienced its peak and start looking for the next coin.
The price of SHIB is currently trading at $0.00002090, down 3% percent in the last 24 hours and 13% percent over the previous week. Yet, the crypto community at CoinMarketCap is still bullish on the asset in its May 31, 2022 price forecast.
Concentrated Holding Pattern and Limited Real-world Use Cases
According to Raj A Kapoor, Founder of India Blockchain Alliance, this meme coin could go into hibernation due to a small number of wallets holding it, limited merchant adoption, and a hazy development future.
“Ten wallets hold about two-thirds of the total quantity of SHIB coins,” he continued. “Even Shiba’s audit report on its website shows that four wallets have more than half of its available supply.”
In addition, SHIB has a limited amount of use cases and is competing for crumbs as a payment option. It’s impossible to say whether or if SHIB developers will continue to offer value in the future.
Kapoor also pointed out that the token’s developers are all volunteers and that the future is only seven paragraphs long, with half of that space devoted to marketing efforts.
Meme tokens like Shiba Inu, which lack intrinsic value and utility use-cases, are expected to swing wildly with market sentiments.