The Shiba Inu meme token is depreciating rapidly. What is the reason for the price collapse and can Shiba Inu reach the old level again?

In recent weeks, the meme token Shiba Inu (SHIB) has caused a great deal of excitement on the market. The fun currency hit one all-time high after the other, becoming even more valuable than the Dogecoin. This made Shiba Inu not only more valuable than Dogecoin for a short time, but also ranked eighth among the most valuable currencies on the market. Now the price of the ERC-20 token is falling rapidly.

Shiba Inu Loses 25 Percent Of Its Market Capitalization

After the sharp increase in recent weeks, many had expected a correction, but this did not hacryptoppen at first. While the trading volume is still exceptionally high at USD 9 billion, the SHIB price has now fallen from USD 0.000066 to just USD 0.000046 within a few hours.

The cryptocurrency lost around 30 percent of its value within a few hours. With a market capitalization of around 25 billion US dollars, SHIB is only the eleventh most valuable cryptocurrency on the market.

What Share Of The Shiba Inu Loss Does The Kraken Exchange Have?

The drop in price could be related to the news from the crypto exchange Kraken, which SHIB will not take up for the time being. For a long time, there was speculation about a listing with Kraken, many fans of the cryptocurrency already saw this as safe. Kraken himself had contributed to this expectation.

The crypto exchange Kraken tweeted that they wanted to listen to the wishes of investors. Kraken had announced that she would record SHIB once she reached 2,000 likes. The likes came together quickly, meanwhile, there are even more than 81,000 likes. However, the listing has not yet materialized.

The Rest Of The Market Remains Stable

So while the SHIB token is experiencing a massive correction, other cryptocurrencies are currently still in the midst of a consolidation or increase phase. Other cryptocurrencies such as Solana, Polkadot or Ethereum have also regularly been able to set new records in recent weeks.

If the SHIB price continues to support itself, many investors will certainly ask themselves whether investing in meme tokens is still worthwhile. Dogecoin also has to accept a minus and loses around 2.7 percent. With a price of 0.257 US dollars and a market capitalization of around 33 billion US dollars and a resulting ninth place among all cryptocurrencies, DOGE investors are in a much better mood.

Shiba Inu Course Forecast – 2022 Crucial Year For SHIB

Meme tokens had their hype in 2021. This will not completely abate in 2022 either. Nevertheless, in our opinion, it has recently become noticeable that meme coins such as Dogecoin or Shiba Inu (at least still) lack the strength to keep the price at a high level, at least in the long term. While Bitcoin is currently just over 30 percent below the all-time high but also held out longer at around 55,000 US dollars, this does not seem to be possible in relation to Shiba Inu.

Will Shiba Inu ever set a new all-time high again? In our view, this is very likely. However, a new all-time high (measured in terms of market capitalization) will not really reach new heights. In the longer term, if the NFT game really becomes a success, the price could linger at higher levels.

In addition, the burning will probably only be rewarded with success if the standard holder would also burn part of his coins. And that’s exactly what doesn’t happen – instead, many Shiba Inu Coin owners hope that the amount in circulation will fall, the price will rise, but at the same time, their own stock will remain the same. That can’t add up to the bill.

However, the outlook is not very negative. What the developers will also bring: The year 2022 is essential for the development of Shiba Inu. The year will show if Shina was just a short hype or if the cryptocurrency can really exist in the sector for the long term. However, just relying on the community will not be enough. Now the developers have to deliver.