The value of Shiba Inu (SHIB) fell during the last month by 29,69%, from $0.00001437 to $0.00001108. Moreover, since its peak value in February, the asset has lost 37,27% as a whole. And it would seem that at the very least the upcoming launch of Shibarium Layer-2 should keep the asset afloat, but as such, there is no effect. Let’s discuss what will affect the token’s growth and when.
The main drivers of SHIB’s growth and decline, and its current price
The main reason for Shiba Inu’s fall can be considered external factors. Because during the past month and a half since the peak, the asset did not stand out negatively in the news agenda in any way. As for the growth moments, the main price mover was the Fed key rate hike (from 4,5% to 4,75%), as well as the influence of SpaceX head Elon Musk on all “dog” tokens.
In the Fed’s case, the asset sharply rose from $0.00001142 to $0.0000151, an increase of 32,22%. And after Musk’s February 15 post with his dog as Twitter’s CEO, all dog coins rose in value. Shiba Inu was not an exception; it grew by 13,86% from $0.00001219 to $0.00001388.
One of the most recent external causes that influenced the fall of the whole market, and with it SHIB, were the proceedings in the reporting of one of the largest crypto banks in the U.S., Silvergate. Regulators became interested in the case after the institution’s outflow of funds reports showed unmatched transactions.
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The company’s stock instantly collapsed by 40% and then another 10%. That, among other things, affected the crypto world. So, Shiba Inu declined by 9,35%. Here’s how it looks on the chart.
Almost four days have passed since the drop, and SHIB has not yet managed to recover. At the time of writing, the asset is trading at $0.00011. This is only 0,18% less than the day before. Moreover, during the last 24 hours, the asset was traded on the positive side, and there is a chance that the rebounce is going to take place soon. We will talk about it further.
- Shiba Inu
- Price $0.00000800
- Market Cap
What could cause the price to rise?
The product team has big plans to grow the value of the asset. The main focus now is on the launch of Shibarium, which, among other things, will give SHIB a new use case, namely the ability to trade on a decentralized exchange. Demand for the token is expected to increase after that, which could lead to higher prices. In addition, the successful implementation of Shibarium should attract even more investors to the product ecosystem.
Also, don’t forget about periodic token burning, which should also lead to a price increase. There are currently 589.7K SHIBs in circulation. The first burning took place in June 2021, when the creators of the asset sent their tokens to Ethereum co-founder Vitalik Buterin, who received 40% of the total coins. The businessman burned 90% of SHIB (about $6.7B at the time).
Now, according to the Shiba Burn Tracker, only 41,0389% of the total number of tokens were burned.
With burning, the project team plans to raise the price of SHIB every year and break the $1 barrier by 2026.
— SHIB-EVOBEA (@evobea_shib) February 26, 2023
The pivot is coming?
According to U.Today, there are two key reasons to believe that SHIB will soon recover in price. One is due to the fact that along with the value of the token, trading volume has decreased, which could be a signal of a reversal.
Over the past 24 hours, the metric has fallen to $132,048,106 (-9,57%). According to U.Today analysts, the decline in trading volume is seen as a bullish signal. This is because pressure from sellers is easing and there may be fewer sellers left in the market. If the value of the token recovers and starts to rise with lower trading volume, it would be a sign that SHIB is ready to recover.
Network activity can also affect the growth of the asset. One of them is the return of Shiba Inu to the top 10 most bought tokens among the 2,000 largest Ethereum whales. WhaleStats analysts, who studied the activity of the largest market players in the Ethereum network, came to this conclusion.
Peep the top 100 whales here: https://t.co/R19lKnPlsK
— WhaleStats (tracking crypto whales) (@WhaleStats) March 6, 2023
In addition, SHIB continues to expand its presence on cryptocurrency exchanges. According to Coincodex, the token is already traded on 96 platforms with 163 trading pairs. And since March 3, SHIB has beem traded on the London-based cryptocurrency exchange BTCC.
— SUNSHINE 柴犬 (@sunshineSHIB) March 3, 2023
On March 3, apart from the listing, the price of the asset was also affected by the proceedings in Silvergate, so the growth was insignificant (+3%). However, probably, the addition to the exchange helped SHIB not to fall lower. The next listing, however, may raise the price even higher.