Shib went for a dip? This cryptocurrency analytics firm went for a deep dive on the Shiba Inu coin, clarifying why the meme-based digital currency dived this past couple of days.
Why did Shib coin dive?
Santiment, a cryptocurrency analytics firm, mentioned that Shib coin surged in May because investors thought it would be the next Dogecoin. Indeed, there were some reports that Shib coin would be the “Dogecoin killer.”
Despite that, Santiment said the hype around the Shiba Inu coin had died down, which is why the currency hasn’t seen a high rise in value recently. Social media promotion likely led to a high surge in interest and value for the Shib coin. Since then, the publicity has died down, which has created the dip, according to The Daily Hodl (Hodl is a cryptocurrency term that means “hold” or “keep” your coins).
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 shows up in emerging trends list, specifically in top 3; it’s oftentimes a indication of a price top. Because it suggests 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 meme-based cryptocurrencies — like Dogecoin or Shiba Inu coin — only succeed when they become useful as an actual currency. Otherwise, they’re victims of social media hype. He tweeted that:
- “Meme coins like Doge only function if they obtain utility and operators use them for that utility, as long as more companies take doge for products/services, then Doge can be a usable currency.”
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