According to Mike McGlone, senior commodity strategist at Bloomberg Intelligence, one of the most popular meme coins shiba inu (SHIB) may experience quite difficult times in the future.
McGlone criticized the popular memecoin quite heavily in the latest edition of Bloomberg Crypto Outlook, calling it a “Dogecoin wannabe” and “an example of extremism among 13,000 cryptocurrencies.”
SHIB has been making headlines in recent months as a result of their astonishing earnings. The 11th-ranked crypto-asset by market cap is up 74,142,662 percent over the past year, an unimaginable increase, and is trading at $0.000055 at the time of writing. However, according to this incredible rate of increase, SHIB has fallen by more than 20 percent compared to last month.
According to McGlone, Shiba Inu’s climb towards the $40 billion market cap will put the memecoin at risk similar to what Dogecoin (DOGE) experienced in the second quarter of this year, crashing from $0.74 in May to $0.16 in June.
McGlone predicts the Shiba Inu will succumb to gravity and says that memecoin is facing a worthy return to its parabolic rise.
“As the Shiba Inu comes to the end of the road, we will witness the problem that many assets are vulnerable to risk aversion.”
McGlone, who has studied Ethereum alongside Shiba Inu, believes the second-largest crypto asset looks healthy and poised for more gains.
“Demand is increasing, supply is decreasing, and Ethereum’s position at the epicenter of the digitalization of finance and money provides a basis for further price appreciation.
The number two crypto – the denominator of NFTs (non-fungible tokens) and the best platform for tokenization – is well on its way to becoming the internet’s collateral, similar to Bitcoin’s trajectory as a global digital reserve asset.”
You can find the rest of McGlone’s report here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.