The price of Shiba Inu collapsed recently, raising concerns among investors about its ability to recover from the major decline.
According to Coinbase, Shiba Inu is now priced at $0.00003140 with a market capitalization of $17.2 billion.
One of the leading cryptocurrencies this year is Shiba Inu. The meme coin has seen a massive rally backed by crypto traders this year. However, after SHIB rose in value in October, it experienced a downward trend.
In fact, the Shiba Inu coin lost half its value in November.
Shiba Inu price crash
The Shiba Inu Coin made a profit of 43,000,000 percent in 2021; However, the year meme coin ends with a price crash.
A statistic from The Motley Fool stated that if an investor put $3 into SHIB on January 1st of this year, the Shiba Inu valuation yield would be $1.29 million.
Unfortunately, despite the rally, the meme icon is down 62 percent from its all-time high. Growth opportunities like this rarely come along which even the most seasoned investor rarely encounters.
Shiba Inu Price
Shiba Inu swept the market a few months ago, and it seemed like everyone had been chatting about it at one point or another.
On October 28, the price of the cryptocurrency Shiba Inu was at $0.00008870 at an all-time high, generating huge profits for early investors. Unfortunately, since then, things have not gone well.
With the recent collapse of the Shiba Inu price and the world seeing the meme coin skyrocketing, crypto enthusiasts may be wondering if the recent drop in the Shiba Inu price indicates a buying opportunity and, of course, if the same amazing profits can be expected as before.
The most obvious reason for the sharp drop in SHIB prices relative to Bitcoin is its volatility.
It’s clearly a volatile stock just by looking at its chart even if the beta coefficient is not determined, as another report from The Motley Fool mentioned.
Determining volatility is an asset rising several million percentage points and declining dramatically within half a year.
Moreover, if the market continues to see the collapse of the Bitcoin cryptocurrency, and the Shiba Inu coin to be more volatile than Bitcoin, then a sell-off of the Shiba Inu can be seen. This is exactly what the cryptocurrency market is experiencing right now.
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Shebaa Inu market size
SHIB’s smaller market size explains why it is more volatile. SHIB has a market capitalization of $21 billion, while that of Bitcoin is around $1 trillion. The smaller the market value of an asset, the greater the effect of a relatively small purchase on its price. For this reason, small stocks are often more volatile than large stocks.
SHIB invests with uncertainty
Dogecoin and Shiba Inu are popular cryptocurrencies without a solid foundation, and thus investors are making money by relying on the idea of the “biggest fool”.
This theory suggests that a person can benefit from a lower quality asset because someone else (the bigger fool) will be willing to buy it at a higher price in the future.
As shown in another Motley Fool analysis, the madness dissipates over time. As a result, the number of sales began to exceed the number of buyers, which led to a crash. In order to avoid leaving the bag in 2022, new investors should avoid Dogecoin and Shiba Inu.
Shiba Inu Coin has had a difficult two weeks, and it may continue to be difficult in the future. With the collapse of the cryptocurrency market as a whole, anything that might happen to these cryptocurrencies is just speculative at the moment.
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