Shiba Inu May Rebound, But Now, It is Slowly Entering the Selling Area, And No One Can Save It.

In 2021, Shiba Inu, the Dogecoin killer, became the focus of attention. Shiba Inu is an alternative currency created by a pseudonymic entity named ryoshi in August 2020. Like many other cryptocurrencies, Shiba Inu’s name is inspired by a dog breed. According to its white paper (known as “Wang Wang book” in Shib community), the founder launched Shiba Inu on Ethereum because the blockchain is mature and secure.

Since the second quarter of 2021, Shiba Inu has witnessed a huge growth of nearly 700% and is considered to be comparable to Dogecoin. With the intervention of technology giant Elon Musk, the benefit value of Dogecoin has increased significantly. However, due to the sudden market collapse at the end of 2021, this rise stopped abruptly, making investors wonder whether they should buy, hold or sell Chivas in this case. This article mainly introduces how and why Shib slowly enters the selling area, and no one can save it.

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Shiba Inu’s Fundamentals Remain Weak

At the end of the day, demand is greatly affected by fundamentals. The fundamentals of Shiba Inu are still quite weak. As a token on the Ethereum network, Shib does not have the design flexibility of other large cryptocurrencies, leading it to suffer from Ethereum network challenges, such as soaring costs – up to $30 per transfer.

Shiba Inu developers will have to wait until Ethereum’s planned upgrade (called the consensus layer) to address these challenges. It is unclear when this will actually go online. At the same time, Shiba Inu is trying to expand its functions through new projects, such as shiberse, which is an immersive meta space experience of Shib ecosystem.

In February, developers announced Shiba lands, which will be a virtual real estate available for purchase. However, the land can only be purchased with a token called Doge killer (crypto: lease), which is different from Shib. And it is unclear whether this metadata project will promote the demand for Shib – in addition to making speculation.

Experts Say Community Growth is False

Shiba Inu supporters have carefully cultivated an online community focused on trading and promoting cryptocurrencies and related NFTs. Now, they go further and try to limit the supply of Shib and improve its market value. Community members destroyed more than 239 million and 400 million tokens in December and November, respectively. But no matter how many tokens they burn, demand continues to decline at a potentially higher rate, leading to market collapse.

Shib Has No Less Advantages Than Others

Shiba Inu is an ERC-20 token based on Ethereum’s blockchain. Although this allows it to interoperate with the Ethereum network and dapps running on it, Shiba Inu is limited by a larger blockchain. For programmable blockchains such as Shiba Inu that use smart contracts, this is to attract more developers to join the ecosystem. There have been several reported incidents around the speed, scalability and accuracy of the network.

There Are Very Few Real-World Use Cases

Major cryptocurrencies, such as bitcoin, Ethereum and Solana, to name just a few, have disrupted the global economic and financial ecosystem. If a coin wants to have long-term legitimacy, it needs to have the utility of the real world. But when it comes to Shiba Inu, the coin has made little progress. Shiba lags far behind in the dapps market, such as uniswap, opensea and axie infinity, in terms of use cases and implementation.There are still no institutions to adopt it

Many cryptocurrencies threaten to replace fiat money. But there is still no evidence or speculation that Chivas will face adoption by any institution in the next few years. Volatility remains a major issue for Shib holders. In addition, some market analysts and cryptocurrency experts suggest that investors only consider Shiba Inu’s short-term investment rather than choosing it as a long-term investment asset.