An analyst at Bloomberg believes the SHIB token frenzy is an indication of "excess" in the cryptocurrency markets, and he believes a "reversion worthy of its parabolic rise" is coming.
Back to the doghouse with the dog tokens.
Speculative froth, according to some cryptocurrency analysts, may be harming the fast-growing digital-asset industry's credibility, as evidenced by the meteoric rise of dog-themed tokens like dogecoin (DOGE) and shiba inu coin(SHIB).
They were created as a prank, but they've gained a large following of both speculators and enthusiasts. The upshot is that these cryptocurrencies aren't given the same level of importance as other blockchain-related cryptocurrencies.
Bloomberg Intelligence commodity strategist Mike McGlone wrote in a note on Wednesday that "For the use of crypto assets in investment portfolios to continue forward, we suggest the speculation machine coins should undergo some cleansing as soon as possible."
Both DOGE and SHIB were trading well below their year-to-date highs at the time of the most recent calls.
The DOGE price was hovering around 23 cents at the time of this writing, down from its all-time high of 74 cents set in May. Similarly, the shiba inu coin, which is viewed as a dogecoin clone, is currently trading at around $0.00004845, down 45 percent from its all-time high of $0.00008854 on October 28.
Prices for Shiba coins
In a single 24-hour period in October, SHIB rose 70% to a reported market capitalization of over $39 billion, according to reports. SHIB's share price rose in response to a Change.org petition calling for the stock to be listed on the retail trading platform Robinhood.
SHIB is still viewed with skepticism by professional cryptocurrency analysts.
"A reversion worthy of its parabolic rise" might be in store for SHIB token prices, according to McGlone, who correctly predicted bitcoin's rise to over $50,000 in 2020.
Market capitalization of nearly $40 billion and No. 9 spot on CoinMarketCap in October suggest that shiba inu tokens may be fun for speculators. According to some, it appears to be a "example of excess" among the 13,000 other cryptocurrencies.
A "unique blend of exploit, good marketing, ESG, supply [versus] demand economics and gambling on an unprecedented 24/7 global scale," he said, "presents the shiba inu coin, and faces a reversion worthy of its parabolic rise."
In May, just before the collapse of dogecoin, "the memecoin has reached our radar," says McGlone. "Shiba inu is at similar risk."
Even while the market value of dogecoin and shiba inu coin has fluctuated throughout the course of the year, the aggregate market value of the two coins tends to consistently max out around $80 billion, as McGlone pointed out.
Shiba Inu Cryptography
At around $60,000 for bitcoin and $4,000 for ether, McGlone compared the dogcoin dynamic to recent market support.
To keep the ecosystem growing and strong, "some cleaning of meme coins might pressure the stalwarts," he wrote.
CEO of Quantum Economics Mati Greenspan stated that the SHIB cryptocurrency has yet to be proven.
In Greenspan's opinion, "SHIB has gotten about as far as it can on hype alone." "The network's future value can only be derived from its expansion. To begin, they'll need to move away from the Ethereum platform and create their own blockchain and other products."
A transfer of 170 billion SHIB coins, worth approximately $8 million, was recorded on the Ethereum blockchain earlier Wednesday.
Website Watcher.Guru, which is used in crypto-industry jargon to refer to "whale" transactions, noticed that the transfers had been made and labeled them "whale" purchases.
A follow-up tweet from the Watcher about the item. There were 864 retweets and 2,934 likes on Guru's Twitter feed.
The CEO of AMC Theaters said earlier this week that the movie theater chain will accept shiba inu coins as payment through BitPay wallets in the next 60 to 120 days.
The changes, on the other hand, did little to rouse the SHIB market – effectively letting a sleeping dog lie.
SHIB was dormant at the time of publication on Wednesday.
A Brief History of SHIBA INU
Dogecoin (DOGE) is a popular memecoin, and Shiba Inu (SHIB) aims to be an Ethereum-based alternative. SHIB, in contrast to Bitcoin, is intended to be plentiful, with a total supply of one quadrillion units. Among the many initiatives supported by the Shiba Inu Token ecosystem are the NFT art incubator and the Shibaswap decentralized exchange.
The mechanics of how it all works
Because it's an Ethereum token, SHIB can be used across the entire Ethereum network. Ethereum wallets such as Coinbase Wallet or Metamask, decentralized exchanges (DEXs) like UniSwap, and DeFi applications such as lending and savings products and NFT marketplaces are all compatible with SHIB.
SHIB is interoperable with the Ethereum ecosystem, unlike DOGE, which has enabled the community to build crypto applications like ShibaSwap, a DEX that enables users to trade and stake tokens without the need for an intermediary. An NFT platform and DAO-based governance system for the Shiba ecosystem (dubbed "DoggyDAO") will be released in the future by the Shiba community.
Speculation in altcoins and exposure to the US dollar through tether are competing with Bitcoin's perceived role as an inflation hedge.
Turkish citizens are turning their backs on the example set by some foreign public companies that have adopted bitcoin as a store of value asset because of high inflation and a plunging currency. Instead, they're turning to stablecoins like shiba inu (SHIB) and tether(USDT).
At $918 million, the bitcoin-Turkish lira trading volume on Binance was less than one-fifth that of the $5.26 billion in shiba inu-lira and the $5.58 billion in tether-lira traded during November.
When it comes to SHIB (SHIB), the data shows that local traders are still interested in the exceptional returns associated with coins such as SHIB, Strahinja Savic of Toronto-based crypto platform FRNT Financial said in an email.
We've tried to get in touch with BTCturk, one of several exchanges offering lira-BTC trading but have not received a response.
Even as inflation topped 20% and the US Federal Reserve began to taper its liquidity-boosting, asset-purchase program, the lira plunged nearly 40% against the dollar in November. At an annual decline of 87%, the currency is on course to post its ninth straight year of decline.