Shiba Inu, a decentralized cryptocurrency token has garnered more than 30,000 new investors over the last 30 days despite plunging by 50 percent.
Shiba Inu’s all-time high was set back since October 2021. The meme-coin has now fallen a shocking 85 per cent from that point. According to data from IntoTheBlock, this decline is a sign that there are more global Investors who are “out of the money” than they are “in the money”.
Despite this market wide volatility that was caused by rising interest rates and the collapse of Terra’s UST stablecoin, the overall number of unique addresses that hold Shiba Inu has increased from 1,133,029 on April 18 to 1,163,590 on May 17, according to CoinMarketCap.
Paul Veradittakit, partner at digital asset manager Pantera Capital, said: “Compared to 2018, there are more institutional investors with exposure to crypto and most see this as a buying opportunity.”
Chief investment strategist at Nuveen, Brian Nick stated, “What gets punished when financial conditions are tightening? Anything with a high valuation and an uncertain or non-existent revenue stream.
“And crypto has inarguably high valuations and no revenue stream. That’s very much of a piece with what we’re seeing in growth stocks, tech. It’s correlated but obviously, it’s more volatile because the market is less liquid.”
This recent decline across the crypto market surfaces as investors seem to be stepping away from cryptocurrency and putting their money in less risky investments at a period of global inflation. Shiba Inu’s 50 percent decline is almost double to that of market leaders Bitcoin which is down by 24 percent and Ethereum which is down by 30 percent.
As always with cryptocurrency, there is never certainty, seeing more investors putting their money in Shiba Inu despite the market’s current turmoil, gives holders a sense of hole as more than a million people still believe in the project’s long term prospects.
Isa Muhammad is a writer and video game journalist covering many aspects of entertainment media including the film industry. He's steadily writing his way to the sharp end of journalism and enjoys staying informed. If he's not reading, playing video games or catching up on his favourite TV series, then he's probably writing about them.
