Shib Army Gripped by Fear as Shiba Inu Plummeted 70

Shiba Inu, known for its volatility, has experienced a notable downtrend, enduring a three-day consecutive decline to hit a new low of $0.00001271. This marks its lowest point since March 1st, representing a staggering 70% drop from its peak earlier this year, underperforming against key players like Bitcoin and Ethereum.

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Crypto Fear and Greed Index Plummets
The depreciation in Shib’s value can be attributed to escalating apprehension within the cryptocurrency realm, as evidenced by the Crypto Fear and Greed Index plummeting to 29, marking its lowest reading since November of the preceding year. A multitude of factors, both intrinsic and extrinsic to the crypto space, have contributed to this downward spiral. The surge in Bitcoin balances on exchanges, coupled with reports surrounding the German government and Mt. Gox reimbursements, has further fueled the negative sentiment.

Escalation of Competition
Another factor exacerbating SHIB’s descent is its weakened fundamentals, as recent data indicates a waning demand for the token. On numerous occasions, its trading volume has been eclipsed by emerging meme coins like Pepe and Dogwifhat. To illustrate, while Shiba Inu registered a trading volume of $500 million, Pepe and Dogwifhat boasted figures of $1.3 billion and $913 million, respectively. Concurrently, other meme tokens such as Floki and Bonk have been witnessing heightened trading activity surpassing SHIB’s metrics.

Nevertheless, the Shibarium network, the backbone of Shiba Inu, is encountering its own set of challenges. Data sourced from DeFi Llama reveals a significant decline in the total value locked (TVL) within Shibarium, plummeting from its peak of $4 million earlier this year to $1.39 million presently. Notably, all decentralized applications (dApps) hosted on Shibarium, including WoofSwap, ChewySwap, Marswap, and DogSwap, have experienced a distressing 40%-plus decline in TVL over the past month.

Moreover, assets managed by ShibaSwap have dwindled to $18.97 million, a considerable decline from their pinnacle at nearly $2 billion in 2021. This corroborates the prevailing challenges within the SHIB ecosystem, highlighting the exigency of the forthcoming days in shaping the trajectory of this meme coin.

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Meme Coins
Shiba Inu SHIB