Shiba Inu Edging Below Top-20 Cryptos: Down 17% in 7-days

Paigambar Mohan Raj
shiba inu mobile phone
Source: Unsplash

Shiba Inu (SHIB) has slipped a few places, falling 16.6% in the last seven days. The popular dog-themed crypto project is currently the 19th largest project by market cap. If SHIB’s downward trend continues, the token may soon exit the top 20 cryptos. The asset is down 23.3% in the last 14 days and 19.4% in the previous year.

Source: Coingecko

The fall in SHIB prices has had a detrimental effect on SHIB holders. Around 80% of holders were at a loss a few weeks ago. Since then, the number of holders at a loss has increased to 91%, according to IntoTheBlock. Only a mere 7% of holders are still at a profit.

Furthermore, ShibaSwap, a Shiba Inu-based decentralized platform, has seen a significant fall in liquidity. The fall in SHIB prices has been accompanied by a 9% decline in ShibaSwap liquidity. ShibaSwap’s liquidity has collapsed to $21.78 million, according to IntoTheBlock, giving investors cause for concern. The drop in liquidity can be attributed to the removal of money from the network and the declining value of the Shiba Inu (SHIB) token and its offspring, BONE.

How can Shiba Inu recover?

SHIB has been on a downward trend since February of this year. On Feb 5, 2023, SHIB reached $0.00001473, but corrections have declined its value by 54.5%. If the trend continues, the large holders could become tired of their losses and begin dumping their holdings. A majority of SHIB investors are large holders. If they were to start selling, the project may face a difficult situation. Some whales have already begun unloading their SHIB tokens.

To get back on track, SHIB could begin having timely releases. The upcoming Shibarium launch has a lot of hype behind it. However, the launch date has been pushed multiple times. Although lead developer Shytoshi Kusama has hinted that the network might launch in July, there is no fixed date. Regular updates and timely launches help maintain confidence in a project.

Secondly, the larger crypto market needs to cool off before Shiba Inu (SHIB) can start making moves. Cardano (ADA), Polygon (MATIC), and Solana (SOL) have fallen more than SHIB in the weekly charts. All three popular projects have fallen around 20% each in the last week. At press time, SHIB was trading at $0.00000670, up by 1.6% in the last 24 hours.