The price tendency of the cryptocurrency Shiba Inu (SHIB) fails to boost significantly, regardless of the good news.
In reality, while Bitcoin (BTC) is at +60 percent since the beginning of the year, and Ethereum (ETH) at +51%, since late 2022 SHIB has gained only a paltry 6%.
It is still doing better than Dogecoin (DOGE) (+1%), but among the top 20 digital currencies by market cap only Dogecoin (DOGE) and LEO are doing worse, excluding crypto stablecoins of course.
The price tendency of the Shiba Inu crypto
SHIB is the coin of the Shiba Inu (SHIB) project
At this time it ranks 15th overall in the ranking of major digital currencies by market cap, surpassed even by BUSD, which is slowly disappearing from the market.
Since reaching an record-breaking peak in late October 2021, it has practically lost 90 percent of its price in less than 7 months, and has done nothing but lateralize for almost a year since then.
In reality, on 19 June a year ago it touched 7.7 millionths of a dollar, and ever since the cumulative gain has been only 11%.
Nonetheless, the 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, the present price is still enormously higher than what SHIB had before the start of the last big bull run, and it is likewise far greater than what it had in April 2021.
The lateralization phase
For being such a volatile cryptocurrency, it is really anomalous that its 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. The 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 SHIB’s price has fluctuated during a fairly compressed range of 8 to 13 millionths.
Such a situation is anomalous, to emphasize the least, for a high-volatility digital currency like Shiba Inu (SHIB), but it is essentially quite easily explained.
In reality, SHIB’s price tendency is precisely marked by long periods when little or nothing whole lot 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 whole lot of happened.
Ever since, 3 huge speculative bubbles have inflated, all 3 bursting during 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.
In reality, recently 11 Million transactions were surpassed on the Puppynet beta of Shibarium, Shiba Inu’s Layer 2.
The important thing is the fact that Puppynet was launched only a little over two months ago, so 11 Million transactions in a little over two months is a decidedly whole lot of number.
Despite the fact that this news has been making the rounds in the cryptocurrency world in recent days, SHIB’s price reaction has been tentative to emphasize the least.
The day before yesterday it went from 8.5 to 8.9 millionths of a dollar in just several hours, only to return to 8.6 millionths tonight.
Nonetheless, it is worth pointing out that Puppynet is still only a beta version, so it is possible that a lot of the transactions on Shibarium are still testing.
Another important figure is the fact 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- was known Ethereum (ETH) Shibarium Bridge, which should facilitate interactions betwixt the ERC-20 SHIB crypto token and its version on Shibarium.
Is the cryptocurrency Shiba Inu (SHIB) in crisis?
In light of all this, there are those who are beginning to speculate that the Shiba Inu (SHIB) project could be in a moment of crisis.
Technically and technologically it is progressing, even significantly, but apparently not from the point of view of adoption.
In reality, market demand for SHIB is not increasing, regardless of the innovations being released at the technical level.
In fact, it should come as little surprise that a memecoin that attracts interest primarily as a result 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 a chance for speculation, it is safe to imagine that only eventual hype will drive its value back up.