A cryptocurrency analytics firm has done a little dive on Shiba Inu coin, explaining why the meme-based cryptocurrency had a dip in recent days.
Why did Shib coin dip so much?
Santiment, a cryptocurrency analytics firm, said that Shib coin rose so much in May because investors thought it would be the next Dogecoin. Indeed, there were some reports that Shib coin would be the “Dogecoin killer.”
However, Santiment said the hype around Shiba Inu coin has died down, which is why the coin hasn’t seen a high rise in value recently. Social media hype likely led to a high rise in interest and value for Shib coin. But since then, the hype has died down, which has created the dip, according to The Daily Hodl (Hodl is an internet meme that means “hold” or “not sell” your cryptocurrency).
Did Shib coin peak?
The Shib surge in May was a sign that the coin had reached its peak, according to Santiment.
- “When a coin appears in emerging trends list, especially in top 3, it’s often a sign of a price top. Because it indicates a sort of a peak social hype. Price can hardly sustain its rally without increasing hype (or social volume),” according to Santiment.
How cryptocurrency can become useful
Dallas Mavericks owner Mark Cuban said that meme-based cryptocurrencies — like Dogecoin or Shiba Inu coin — only succeed when they become useful as an actual currency. Otherwise, they’re victims to social media hype.
- “Meme coins like Doge only work if they gain utility and users use them for that utility,” he tweeted.
- “As long as more companies take doge for products/services, then Doge can be a usable currency,” he tweeted.
