Because of the decline in the crypto market, Shiba Inu seems to be facing a really tough time

The decline in the crypto market this fall seems so damaging that no matter the scale of investors of cryptocurrencies like Shiba Inu, all are facing more or less tough times. As per the recent data, about 81% of Shiba Inu holders are now facing a loss on their investments made within SHIB. This number could be more given the consistently dropping trading price of the popular meme currency which is currently standing at around US$0.0000076 after losing about 7% of its value in the last 24 hours. It could be understood quite easily by looking at the decline in value of SHIB which is about 90% down from its all-time high of US$0.000088 that was attained in October last year.

The Shiba Inu community has found itself in a very rough state for the past few weeks. The coin has been plummeting fast, with the past 7 days showing a 30% decline at the time of this writing. SHIB has also dropped lower to reach 5th-zeros, and the bears are still pushing the price down. At the time of this writing, SHIB was trading at US$0.000007616, which was the lowest price in 8 months. This decline means that SHIB investors that bought the coin during the ATH and still holding have lost 91% of their holdings.

What Shiba Inu has Been in the Past?

Despite this, Shiba Inu's long-term holders are increasing. According to the IntoTheBlock's holders' composition by time held, 19% of SHIB holders have held onto their tokens for more than a year, 77% have held within a year, while 3% have held onto their tokens for less than a month. In late December 2021, U.Today reported that Shiba Inu holders were largely short- and mid-term holders, giving the percentage of each category as 14% and 86%, respectively. At that point, the percentage of long-term holders, or those that have held for more than a year, was zero. Fast forward nearly six months, and the Shiba Inu population has shifted dramatically, with long-term owners (19%) outnumbering short-term owners (3 %). Meanwhile, mid-term holders have been reallocated, although they still account for 77% of Shiba Inu owners.

In 2021, Dogecoin killer, Shiba Inu, was in the spotlight. Shiba Inu is an altcoin created by a pseudonymous entity named Ryoshi in August 2020. Like many other cryptocurrencies, Shiba Inu's name was inspired by a dog breed. According to its white paper, which is known as the "woof paper" in the SHIB community, the founder launched Shiba Inu on Ethereum because the blockchain is well-established and secure. SHIB witnessed tremendous growth of almost 700% since the beginning of the second quarter of 2021 and was seen rivaling Dogecoin, the interest value of which increased immensely after the intervention of tech giant Elon Musk. But this rally came to an end due to the sudden market crash at the end of 2021, leaving investors to wonder if they should buy, hold, or sell SHIB in this condition.

The Bottom Line

Many cryptocurrencies threaten to replace fiat currencies. But there is still no evidence or speculation that Shiba Inu will be facing any institutional adoption in the coming years. For SHIB holders, volatility is still a major issue. Moreover, several market analysts and crypto specialists have suggested investors consider SHIB only for short-term investments, and not choose it as a long-term investment asset.

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