Shiba Inu experienced a pullback, dropping from its August 9th peak of $0.000014 to $0.000032 as the recent surge in momentum began to fall off. This decline coincided with Bitcoin’s dip, which saw the leading cryptocurrency fall from an intraday high of $62,000 to below $60,000. After examining the coin’s volume data, it’s clear that demand for Shiba Inu has been on the lower side over the past few days. In the spot market, Shiba Inu recorded a 24-hour trading volume of $321 million, a modest figure considering its market cap of $8.2 billion.
This relatively low trading activity highlights the cooling interest among investors, suggesting that the rally may be losing steam. Despite that, people are still trading Shiba Inu and other assets using platforms like Finance Phantom.
A Centralized Trading Focus
The majority of Shiba Inu’s futures open interest is focused on OKX, which happens to be one of the largest centralized crypto exchanges in the industry. Interestingly, unlike major cryptocurrencies such as Bitcoin, Shiba Inu’s open interest data isn’t readily available on other prominent exchanges like Bybit, Deribitor Binance. This lack of data from other major platforms could indicate a more centralized trading focus for Shiba Inu, which contrasts with the broader distribution seen in more established cryptocurrencies.
It wouldn’t be a far stretch to say that interest in Shiba Inu among traders has dwindled in recent years as attention has shifted to newer tokens like Pepe, Popcat, Bonk and whatnot. This decline in popularity has left Shiba Inu’s price slowly going down, currently sitting around 70% below its peak from March this year and a staggering 85% below its all-time high. The once-hyped meme coin now faces stiff competition from fresh contenders in the crypto space, making it a challenge to regain its former glory.
What About the Broader Ecosystem?
Shiba Inu’s broader ecosystem is also struggling to gain traction. Shibarium, which is the network’s layer-2 solution, has managed to attract just $1.2 million in assets, reflecting a lukewarm response from the market. Meanwhile, the total value locked in ShibaSwap, the network’s decentralized exchange, has declined to $17.45 million. These numbers paint a picture of a faltering ecosystem, with key components like Shibarium and ShibaSwap failing to generate significant interest or growth.
Shiba Inu’s recent performance highlights a sharp decline for a cryptocurrency that once was highly popular. Unfortunately, however, the coin’s fortunes have taken a downturn, reflecting a broader trend in the meme coin sector. Similarly, Dogecoin, another high-flying meme cryptocurrency, has seen its valuation plummet from nearly $90 billion to $15 billion. While some the value of cryptocurrencies goes down, the sector still has plenty of participants using different platforms like the Finance Phantom website to make trades that could benefit them in the long or short run.