Is the SHIB dead? That’s why Shiba Inu has lost nearly 70,000 users in the past 28 days





Shiba Inu has had three months of steady growth in new token holders, losing 60% last month.

SHIB holders seem to be giving up

It’s hard to ignore the fact that the SHIB exodus began the night before the Federal Reserve officially announced its first 0.25% hike in three years on Wednesday, March 16. See also: Kyoko.finance manages to secure 3 million dollars in loans led by Animoca Brands.. Also on that day, the Federal Reserve announced plans to raise interest rates – up to six times more this year – in an effort to slow record inflation levels.

In general, when interest rates rise, investors tend to shy away from riskier investments and turn to safer options that offer higher yields thanks to rising interest rates, thanks to the Fed. This appears to be what happened. to SHIB when investors shunned its speculative fundamentals. We will have to watch this closely as the SHIB investor leak could be the most important story of the year for the project if it continues. Indeed, if he fails to retain and attract new investors, former Shiba Inu fans may be the first to put this dog down in the not too distant future.

The SHIB token debuted in August 2020 as a “Dogecoin killer”. And with the backing of high-profile celebrities like Tesla CEO Elon Musk, SHIB has rode a tsunami of popularity and its price has soared more than 49,000,000% in the past year. After many of the early adopters became millionaires, hundreds of thousands of people flocked to the project in an attempt to do the same.

However, the math doesn’t work for a further increase as SHIB has a maximum supply of 589 trillion tokens which suppresses the price and its current market cap of $ 14 billion would have to be multiplied 385 times to reach an impossible valuation of 5.4. trillions of dollars so that the price per token reaches just one cent. The whole market for crypto-currencies are currently worth less than $ 2 trillion, so it’s not possible that the Shiba Inu itself is worth $ 5.4 trillion, which is about 2.5 times more than all other cryptocurrencies combined.

From its all-time high last year, SHIB has fallen almost as fast and so far, staying within a trading range of $ 0.000022 to $ 0.000027 per token. As of press time, SHIB is still in this range and its price is $ 0.00002585, according to CoinMarketCap, and is down 70% from its peak of $ 0.00008845 in October 2021. Also read: Cryptocurrency: This security flaw has allowed the creation of infinite ETH tokens ..!. Its price has just moved in the past five months.

The Fed’s first rate hike in three years may have been the catalyst.

It’s hard to ignore the fact that the SHIB exodus began the night before the Federal Reserve officially announced its first 0.25% hike in three years on Wednesday, March 16. See also: Kyoko.finance manages to secure 3 million dollars in loans led by Animoca Brands.. Also on that day, the Federal Reserve announced plans to raise interest rates – up to six times more this year – in an effort to slow record inflation levels.

In general, when interest rates rise, investors tend to shy away from riskier investments and turn to safer options that offer higher yields thanks to rising interest rates, thanks to the Fed. This appears to be what happened. to SHIB when investors shunned its speculative fundamentals. We will have to watch this closely as the SHIB investor leak could be the most important story of the year for the project if it continues. Indeed, if he fails to retain and attract new investors, former Shiba Inu fans may be the first to put this dog down in the not too distant future.

Almmaye’s latest articles (see all)





Leave a Reply

Your email address will not be published.