Why Shiba Inu Coin sank 7% today

Trading volume in the high-flying meme token has dropped off in a big way as the retail investor cohort that bid it up turns its gaze elsewhere.
The post Why Shiba Inu Coin sank 7% today appeared first on The Motley Fool Australia. –

This article was originally published on All figures quoted in US dollars unless otherwise stated.

This article was originally published on All figures quoted in US dollars unless otherwise stated.

What happened?

The downward trajectory of popular meme token Shiba Inu (CRYPTO: SHIB) is continuing Tuesday. As of 8 a.m. ET, it had fallen by more than 7% over the previous 24 hours. 

Earlier this week, it was reported that Shiba Inu had been dethroned as the most-traded cryptocurrency on popular exchange Coinbase (NASDAQ: COIN). Top cryptocurrencies Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH) saw more trading volume than the meme token for the first time in three weeks. 

Additionally, Shiba Inu’s official Twitter account flagged various scams using the cryptocurrency to target investors interested in altcoins. The official Shiba Inu team has reiterated that it is not conducting any promotions of the token — no airdrops, no giveaways, no gifts, etc., so any social media account that says otherwise is likely involved in a scam.

So what?

Tuesday’s decline in SHIB was the largest among the top 15 cryptocurrencies by market capitalisation. Investors appear to be concerned that Shiba Inu is losing momentum and appeal among the category of retail investors who have propped up its price in recent months. 

Falling back behind Bitcoin and Ethereum in terms of trading volume is still nothing to be ashamed of. However, it’s clear that the speculative mania around Shiba Inu may be fizzling. This token has gone from accounting for approximately 25% of the trading volume on Coinbase a couple of weeks ago to 6.7% of the volume over the past week.

Additionally, concerns about the various scams popping up that utilize Shiba Inu may suggest to some investors that the meme token is simply too speculative to invest in. Those who have described the rally in meme tokens as a bubble may certainly point to the scammers attempting to target the Shiba Inu community as another reason to stay away from that cryptocurrency.

Now what?

For meme tokens like Shiba Inu, trading volume is an important metric. The fact that SHIB appears to be losing some lustre with investors suggests that its value may be under pressure for some time.

How much of this trading volume decline is related to investors losing interest, or to investors becoming wary of the bubble-like nature of the meme token space, is unclear. However, it appears that significant numbers of crypto investors are looking to rotate into (or at least diversify into) other surging cryptocurrencies right now.

This article was originally published on All figures quoted in US dollars unless otherwise stated.

The post Why Shiba Inu Coin sank 7% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Shiba Inu right now?

Before you consider Shiba Inu, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Shiba Inu wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The DigitalX share price has tumbled 30% in 8 days. What’s happening?

Did the Bitcoin and Ethereum bubble burst just signal a crypto market top?

Why ASIC chair warns ‘great caution’ needed when investing in crypto

Planning to gift Bitcoin (CRYPTO:BTC) or another crypto for Christmas? You’re not alone

Could carbon credits become the new crypto? This fundie thinks so

Chris MacDonald owns shares of Ethereum. The Motley Fool Australia’s parent company The Motley Fool Holdings Inc. owns shares of and recommends Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!