The decline of Shiba Inu (SHIB), like other meme coins, can be attributed to several specific factors:
Why the meme market like:
Loss of initial hype
• SHIB exploded thanks to the hype effect and the interest generated on social networks and by online communities.
• This hype has run out of steam, as investors move on to other more promising projects or opportunities.
Decrease in transaction volumes
• Fewer new investors are entering the SHIB market.
• The decrease in volumes reduces liquidity and makes SHIB more vulnerable to sharp downward fluctuations.
Increased competition
• New tokens appear regularly, attracting the attention of speculators. SHIB then loses its appeal in the face of more innovative or “hype” projects.
. Lack of concrete use cases
• Despite attempts to give SHIB more utility (such as the introduction of ShibaSwap or other related projects), its real adoption remains limited.
• Without a solid utility, SHIB remains mostly a speculative asset.
Crypto Market Sentiment
• If the overall market is down (bear market), high-risk assets like SHIB are among the first to fall, as they rely mainly on speculation.
Whale Selloffs
• Whales (large SHIB holders) can sell en masse to lock in their profits, causing the price to drop sharply.
• This scares small investors, who then sell
Regulations and Investor Fears
• Uncertainty about crypto regulations globally affects SHIB, as memes are often considered riskier by regulators.
C*nclusion
The decline in SHIB is a combination of factors: loss of interest, low utility, and vulnerability to fluctuations in the overall market.For a takeover, SHIB will have to prove its worth
