The soaring price of meme-coins As time goes by, Shiba Inu loses some steam. Since it was made available for trading on the Kraken crypto-exchange and Newegg Commerce stated that they would accept the digital asset as a means of payment, the token had gained double-digit percentage points. A CoinGecko.com report shows that the coin lost more than 4% of its value on Wednesday. Many people were surprised by the lacklustre response. Later in the year, there was a noticeable shift in price reaction to significant and minor developments. However, the Federal Reserve’s announcement that it may begin to reduce its stimulus is now affecting them, according to Matt Maley, chief market analyst for Miller Tabak + Co.
A month ago, when the Fed was still perceived to be quite accommodative, the reaction to this announcement would have been a lot more positive,” he stated. Maley believes that a large percentage of the recent success of various cryptocurrencies can be ascribed to the enormous amount of liquidity in the system. “That liquidity is going to be less ample,” Jerome Powell, the chairman of the US central bank, said this week after he said the Fed may soon boost the pace of its so-called taper. Therefore, it hasn’t had the same impact.”
Robinhood Markets users were clamouring for Shiba Inu to be featured on the site early this year, and the dog quickly became a sensation. On Coinbase Global Inc. (the most popular crypto exchange in the United States), the token can be traded as well.
However, trade-in SHIB, as well as many other cryptocurrencies, has been highly erratic. Elon Musk’s tweets have impacted the price of SHIB, which plummeted in October after the Tesla Inc. CEO declared he didn’t hold any. According to CoinGecko.com, the coin has lost about 45 percent of its value since its peak in October.
Still, the SHIB coin has a market value of roughly $25 billion, according to CoinGecko.com, making it one of the largest cryptocurrencies. As an S&P 500 company, Southwest Airlines Co. is a good comparison point.
SHIB, with a market capitalization of $25 billion, is unlikely to be accused of being undervalued. But “sell-the-news” flows following its recent addition to major exchanges like Coinbase are likely to be to blame for its underperformance in the short term,” said Stephane Ouellette, CEO and co-founder of crypto platform FRNT Financial Inc.
It ranged between $57,000 and $58,000 during Wednesday’s trading session for the most significant digital asset, Bitcoin.