Between January 1 and January 8, 2022, SHIB’s market cap plummeted by $3.5 billion from $18.68 billion to $15.16 billion.
Drivers for Shiba Inu . Volatility
It is difficult to pinpoint the specific reason behind Shiba Inu’s volatility. The coin appears to be a victim of the general market crash. The fluctuations come in a volatile period for the financial markets, marked by rising inflation. This forced the Federal Reserve to tighten monetary policy.
So at Shiba Inu, the crash appears to be due to large investors taking profits and reducing their exposure to risky assets.
Shiba Inu remains extremely popular
Despite the volatility, there is a sense of positivity among SHIB fans. It can be assumed that this positive sentiment stems from major corporate adoption of the token. As previously reported, Shiba Inu continues to show interest from different angles.
A number of companies are also working together to destroy some of the SHIB tokens. These so-called ‘token burns’ will slowly but surely make the Shiba Inu token rarer and that can drive up the price.
It is worth noting that the growth of Shiba Inu was fueled mainly by social media activity. A recent survey showed that by 2021, Shiba Inu calls rose more than 16,000%. This is the biggest growth rate compared to the other top 10 cryptocurrencies.
The dominance of Shiba Inu was also reflected on CoinMarketCap. The coin was the most viewed asset on the platform. Bitcoin was in second place.
Also, the Shiba Inu ecosystem continues to expand. The platform has teamed up with a game creator to create a play-to-earn NFT game. If the coin’s developments, marketing and popularity remain intact, 2022 could be another solid year for Shiba Inu.
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Current Shiba Inu’s price
However, like the rest of the market, the value of Shiba Inu has fallen significantly. At the time of writing, the coin is trading at $0.00002894. In the past seven days, the price has fallen by more than 15%. However, the currency now finally seems to be starting a small recovery.
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