Between January 1 and January 8, 2022, SHIB’s market capitalization declined by $3.5 billion from $18.68 billion to $15.16 billion.
The driving factors for the Shiba Inu
It is difficult to determine the exact reason behind the fluctuations of the Shiba Inu. The currency appears to have been a victim of the general market crash. The fluctuations come in a volatile period for financial markets, characterized by high inflation. This forced the Federal Reserve to tighten monetary policy.
So in Shiba Inu, the crash appears to be caused by large investors taking profits and reducing their exposure to risky assets.
Shiba Inu is still very popular
Despite the ups and downs, there is a sense of positivity among SHIB fans. It can be assumed that these positive sentiments stem from the adoption of the token by major corporations. 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 make Shiba Inu tokens scarce but steadily and could drive up the price.
Notably, Shiba Inu’s growth has been primarily driven by social media activity. A recent survey shows that by 2021, Shiba Inu calls are up more than 16,000%. This is the largest growth rate compared to the other top 10 cryptocurrencies.
Shiba Inu’s dominance has also been reflected in CoinMarketCap. Coin was the most watched asset on the platform. Bitcoin ranked second.
Also, the Shiba Inu ecosystem continues to expand. The platform has teamed up with a game creator to create the NFT game to play for profit. If currency developments, marketing and popularity remain the same, 2022 could be another strong year for Shiba Inu.
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Shiba Inu current 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, it now appears that the coin is finally starting a small recovery.
SHIB 4-hour chart – Source: Tradingview