Shiba Inu, a type of cryptocurrency often called a meme coin, is now worth far less than it was in the past. A meme coin is a type of digital money inspired by internet jokes or memes. Shiba Inu gained popularity quickly before, but its value has been dropping. It is no longer in the top 30 cryptocurrencies and stands at the 35th position now.
Right now, the price of Shiba Inu (or SHIB) is around $0.000007478. This is a big drop—almost 70%—when compared to its price last year. The total value of all SHIB coins in the market, called its market capitalization, is now under $4.5 billion.
Even with this, some signs suggest that SHIB’s price could rise again. One key sign is that fewer SHIB coins are being kept on exchanges. According to CryptoQuant, a company that studies cryptocurrency data, as of December 28, the amount of SHIB on exchanges had fallen to its lowest level since April 2021—about 81.2 trillion tokens.
Here’s why this matters: when fewer coins are held on exchanges, people are less likely to sell them immediately. This can mean there is less pressure pushing the price down, which can be a good sign, called a bullish signal. If more coins were stored on exchanges, it could mean people were ready to sell, which often pushes the price down.
Could the Price Go Up?
Recently, a user on X (formerly Twitter) named Lyvo said that Shiba Inu has reached its “real bottom.” This means he believes the price can’t drop much lower and that it might soon go up. Lyvo shared that he has been buying SHIB for a mid-term investment, saying, “People don’t believe in SHIB anymore and are selling. This is a good chance for smart money to take action.” The term smart money refers to experienced or informed investors making strategic moves.
What About the Risks?
There are still reasons to think SHIB’s price might keep falling. One of these reasons has to do with a process called the burning mechanism. This process involves destroying some coins, so they can’t be used again. Over time, this could make the remaining coins more valuable because they become rarer, similar to how rare collector items often cost more.
In the past week, SHIB’s team has burned about 30.7 million coins. However, this is 14% less than the previous week. Even though around 410.7 trillion SHIB have already been burned since this system started in 2022, there are still about 585.2 trillion coins left in circulation. That’s a lot of coins, and this large number could keep the price from going up quickly.
Another issue is with Shibarium, a blockchain protocol specifically designed for the Shiba Inu ecosystem. Earlier this year, Shibarium was handling millions of transactions daily, helping SHIB grow. But after a security problem in mid-September, its progress has slowed down, which has negatively affected the whole Shiba Inu system.
Looking Ahead
To sum up, Shiba Inu’s price has dropped a lot, and it faces challenges like too many coins still being in circulation and issues within its ecosystem. However, signs like fewer coins being stored on exchanges give some people hope that its price could rise soon.
Will Shiba Inu make a comeback? Time will tell, but for now, it’s a mix of both hope and challenges for this popular meme coin.