The price tendency of the cryptocurrency Shibaย Inuย (SHIB) fails to boost significantly, regardlessย of the good news.
Inย reality, while Bitcoinย (BTC) is at +60 percent since the beginning of the year, and Ethereumย (ETH) at +51%, since late 2022 SHIB has gained only a paltry 6%.
It isย still doing better than Dogecoinย (DOGE) (+1%), but amongย the top 20 digitalย currencies by marketย cap only Dogecoinย (DOGE) and LEO are doing worse, excluding cryptoย stablecoins of course.
The price tendency of the Shibaย Inuย crypto
SHIB is the coin of the Shibaย Inuย (SHIB) project
Atย thisย time it ranks 15th overall in the ranking of major digitalย currencies by marketย cap, surpassed even by BUSD, which is slowly disappearing from the market.ย
Since reaching an record-breakingย peak in late October 2021, it has practically lost 90 percent of itsย price in less than 7 months, and has done nothing but lateralize for almost a year since then.
Inย reality, on 19 June aย yearย ago it touched 7.7 millionths of a dollar, and everย since the cumulative gain has been only 11%.
Nonetheless, theย present value of $8.6 millionths is lower than it was on 22 June 2022, 3 days after it touched the low of this bear-market.
In spite of this, theย present price isย still enormously higher than what SHIB had before the start of the last big bull run, and it is likewise farย greater than what it had in April 2021.
The lateralization phase
For being such a volatile cryptocurrency, it is really anomalous that itsย value has been lateralizing for so long.
After touching 7.7 millionths in June 2022, it only spiked very briefly to 17 millionths a couple of months thereafter, but then returned to 8 millionths at the end of the year. Theย present value of 8.6 millionths is only slightly higher than the value at the end of 2022.
Excluding two brief spikes over 13 millionths, and the single one below 8, it has practically been eleven months since SHIBโs price has fluctuated duringย a fairly compressed range of 8 to 13 millionths.
Such a situation is anomalous, toย emphasize the least, for a high-volatility digitalย currency like Shibaย Inuย (SHIB), but it is essentially quite easily explained.
Inย reality, SHIBโs price tendency is precisely marked by long periods when little or nothing wholeย lotย of happens, alternating with brief moments when huge speculative bubbles inflate and then inevitably burst.
SHIB debuted in the cryptocurrency markets in August 2020, and until April 2021 nothing wholeย lotย of happened.
Everย since, 3 huge speculative bubbles have inflated, all 3 bursting duringย a very few weeks.
Except for the few weeks when these 3 bubbles inflated and then burst, the rest of the time is marked by long periods of lateralization. And this has been the case for almost 3 years now.
The good news
Curiously, this dynamic turns out to be impervious even to good news.
Inย reality, recently 11 Million transactions were surpassed on the Puppynet beta of Shibarium, Shiba Inuโs Layer 2.ย
The important thing isย theย factย that Puppynet was launched only a little over two months ago, so 11 Million transactions in a little over two months is a decidedly wholeย lotย of number.
Despiteย theย factย that this news has been making the rounds in the cryptocurrency world in recent days, SHIBโs price reaction has been tentative toย emphasize the least.
The day before yesterday it went from 8.5 to 8.9 millionths of a dollar in just severalย hours, only to return to 8.6 millionths tonight.
Nonetheless, it is worth pointing out that Puppynet isย still only a beta version, so it is possible that aย lotย of the transactions on Shibarium are still testing.
Another important figure isย theย factย that the number of Shibarium wallet addresses is approaching 16 Million, although it does mean that there are still numerous without any transactions.
Likewise in the works is the so- wasย known Ethereumย (ETH) Shibarium Bridge, which should facilitate interactions betwixt the ERC-20 SHIB cryptoย token and its version on Shibarium.ย
Is the cryptocurrency Shibaย Inuย (SHIB) in crisis?
In light of all this, there are those who are beginning to speculate that the Shibaย Inuย (SHIB) project couldย be in a moment of crisis.
Technically and technologically it is progressing, even significantly, but apparently not from the point of view of adoption.
Inย reality, market demand for SHIB is not increasing, regardlessย of the innovations being released at the technical level.
Inย fact, it should come as little surprise that a memecoin that attracts interest primarily asย aย resultย of its speculative nature fails to do so with innovations or new technical features.
The value of SHIB is driven by the community, and as long as the community sees it primarily as aย chance for speculation, it is safe to imagine that only eventual hype will drive itsย value back up.
