Shiba Inu (SHIB) is fading as investors opt for real-use tokens and Solana shines. The Shiba Inu fell as much as 40% last week, while the DeFi token Solana rose 21%. Investors are starting to turn from meme coin cryptos to those with real use cases. Detail cryptocoin.com‘in.
Does SHIB go out?
This week, a scam in a Squid Game-themed token and a Shiba Inu whale event discouraged investors. The Shiba Inu has lost some of its recent gains this week and is down as much as 40% for the week in the seven days leading up to Friday. Investors have avoided meme tokens in favor of cryptocurrencies with more real use cases like Solana and Ether. The Dogecoin-inspired meme token touched a low of $0.00004130 on the Coinbase exchange this week, hitting a low of around 40% for the week. It was down about 5% on the day to $0.00005164. The rapid rise of cryptocurrencies has been coupled with developments elsewhere in the crypto space that are attracting investors to more established tokens. This has set off a wave of profit taking, especially in light of the fact that most Shiba Inu in circulation are collected in very few hands.
Ali Beikverdi, CEO and co-founder of bitHolla, an exchange software company: “There are a lot of coins out there to sell and whales with big bags to empty. A few whales holding most of the supply may actually make it easier to raise prices. Know when the whales will sell,” he said. To give an example, Shiba Inu owners were enraged earlier this week when the second largest Shib address started moving $2.3 billion in coins from their wallets. According to Coinmarketcap data, this wallet only accounts for 7% of the circulating shib, while the largest has 41%.
In addition, a violent rally in a “Squid Game” token inspired by the popular Korean series on Netflix resulted in that token dropping from close to $3,000 to 0 within hours. This incident has rekindled concerns about the potential for fraud in the crypto market. Ryan Wilkinson, Product Manager of Blockasset.co, an NFT marketplace built on the Solana network: “Really, investors don’t like losing money. “What happened with the Squid Game token has caused a high level of unease among investors.”
Solana rising
Meanwhile, investors flocked to coins with real use cases such as decentralized finance, immutable tokens: Ether, Solana, and Avalanche took the lead. Solana’s SOL token has gained 21% so far this week and hit record highs of over $250, while Avalanche’s AVAX is up 18% this week and Ether, the second most traded cryptocurrency after Bitcoin, gained 1.6%. Wilkinson said, “As its usability and environmental friendliness resonate with the blockchain industry, Solana is undoubtedly one of the hottest blockchains today. “The number of decentralized finance (DeFi) applications and immutable tokens (NFT) floating on the blockchain is the ultimate source of increased demand for SOL.”
Ether has benefited from the increased momentum around NFTs and the metaverse, most of which run on Ethereum, alongside the announcement of the launch of micro futures by the largest derivatives exchange, CME. Regardless of the scandals and scams that followed meme cryptos and social tokens, from time to time some market watchers believe these more speculative coins will continue. Trader Marcus Sotiriou said, “Meme tokens will play a huge role in the cryptocurrency space. We have evidence that this is the case with cryptocurrencies like DOGE and SHIB. “In a world where we are all connected by social media, these communities can be very powerful and benefit from network effects.”
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.