Nobody Cares About Shiba Inu (SHIB) Anymore, And There’s a Reason For It (Opinion)


Shiba Inu (SHIB) is the second largest cryptocurrency inspired by memes. It is safe to say that it was all the rage for a couple of months in 2021 when its price reached its all-time high on October 28, 2021, registering $0.00008616.

While it may not sound like much, this is an increase of a few hundred thousand percent in less than a year. Shiba Inu (SHIB) became a worldwide phenomenon with everyone looking to jump on the hype train.

Fast-forward a few months later, the price is down 90% from its all-time high, social sentiment is virtually nonexistent, and interest in cryptocurrencies has disappeared. In this article, I try to provide some reasons why this happens. But first, let’s start with the numbers.

Nobody cares Shiba Inu (SHIB)

This statement itself could be a bit of an exaggeration: there are still some people who follow the project. But SHIB’s popularity was so high in the second half of 2021 that those currently involved pale in comparison. And there is data to back it up.

google trends

First, Google Trends data reveals that searches for the keyword “Shiba Inu” are down to levels seen before the hype of October and November of last year. Google Trends is a common way to gauge retail interest in a given topic.

Of course, it’s also worth noting that the term “Shiba Inu” is used to describe a particular breed of dog, after which the cryptocurrency is named. Therefore, the people interested in the coin itself are likely to be even fewer.

Source: Google Trends

And while many would argue that this is due to the general decline in the cryptocurrency market (and they would be partly right), Bitcoin did not see such a massive decline in retail interest. The data shows that searches for “bitcoin” are down around 50% from their 12-month high, while searches for “ethereum” are down around 65%. These are notable declines, but nowhere near the 95% drop in interest the Shiba Inu experienced since its 12-month high.

social mentions

Data from popular analytics resource in the block provides more information on the social presence of the Shiba Inu. Based on multiple social indicators, interest in cryptocurrency is clearly plummeting. For example, Twitter sentiment has been trending down for quite some time.

img2_shiba
Source: IntoTheBlock

The same is observed on another community building platform: Telegram. SHIB channel membership is declining and so is the sentiment there:

img3_shiba
Source: TradingView

Clearly, interest in Shiba Inu (SHIB) is going down the drain, but why?

Why is interest in SHIB plummeting?

Well, for once, it has to do with its unsustainable growth which was evidently mostly based on pure speculation. To support this, crypto potato reported in October 2021 (when the trend was at its peak) that SHIB futures trading volume had uploaded by a factor of 78x in a matter of seven days.

Futures contracts are predominantly used by speculators who want to take advantage of higher positions when profitable market opportunities present themselves. Their growing number is indicative of the massive speculation that was plaguing the market.

Around this time, stories of SHIB-made millionaires began popping up left and right. On October 31, 2021, the cryptocurrency went up 100,000,000% since January of that year. That’s how it is – one hundred million percent. This meant that anyone who had invested as little as $1 on January 1st would have been literally a millionaire, had they kept the stack up.

This invites a certain crowd of investors who don’t care, in the slightest, what they are investing in. People rushed like crazy at SHIB and SHIB-inspired knock-offs and interest was through the roof. At some point, other memecoins like Floki Inu were advertised in physical locations like the London Underground station or some public transport buses.

What’s the problem with that? Well, that’s the kind of unsustainable growth I was talking about. The problem is that the moment the music stops, the crowd loses interest. In this case, it’s the price: the moment the price stops rising and hits new all-time highs, the people who were in it just for the monetary gains are sold out and never look back or hold on to their bags with hope. hope for a miraculous recovery.

Data of in the block shows that about 72% of those with SHIB are lost. Of course, this is to be expected given that the price is down 90% from its all-time high, but it also shows that many people were chasing bombs long after the price had spiked by thousands of multiples.

Usually only people with a strong conviction remain interested in moments of maximum desperation and the SHIB crowd just didn’t seem to have that…at all.

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