Shiba Inu's weak fundamentals and concentrated ownership make it a high-risk asset.

The Shiba Inu token (SHIB) known as one of the best memecoins in the crypto market is attempting to stabilize after shedding value earlier this month, with the cryptocurrency markets plunging in response to news of the collapse of the Terra stablecoin. But nothing seems helpful and many experts predict that Shiba Inu will continue to drop this year before making a dramatic comeback. SHIB did get a boost of 21% when popular trading platform Robinhood listed the coin for trading on 12 April. But it has been downhill since then. The SHIB/USD price has dropped by more than 40% since the start of the month and has lost 65% since the start of 2022. Many investors (current and future) are concerned about the continuously falling price of Shiba Inu but what is the reason behind this downfall and how SHIB will make a comeback? What is the future of shiba inu coin? Should you buy now to make gains in the future, or should you sell the coin short attempting to profit from a further fall? Let's find out.

Why Shiba Inu is falling?

One of the biggest reasons is that the whole Crypto market is down so is Shiba but sudden drops in Shiba Inu prices are mostly related to panic selling by the holders. Even a small drop in price sometimes triggers panic selling as people are afraid of losing money but holding and buying the dip seems to be the best option. The biggest challenge for the Shiba Inu project is its utility. The Shiba token grew out of hype and not because of products. That's why when the hype started slowing, the price started to drop and has been plummeting since then. The Shiba team is now working on building products for its ecosystem, but the pace has been slow.

Will Shiba Inu continue to drop?

Shiba Inu's collapse is likely to continue while it is impossible to predict the future, Shiba Inu's weak fundamentals and concentrated ownership make it a high-risk asset. And the token's valuation is likely to continue collapsing in 2022.

How will Shiba Inu make a comeback?

Shiba Inu seems profitable in the long run because many whales are buying and holding a lot & Shibas are burning at fastest rate possible, also many new projects are being introduced to the platform and by the community like integration with metaverse and Web 3.0 projects. Soon Shiba may also see many uses like other utility tokens if everything goes well by the planning. So, these falls are temporary and Shiba holds a bright future if all plans are executed successfully. If Shiba Inu were to reach a penny, the cryptocurrency would be worth multiples more than Bitcoin. Because of the massive amount of capital required for SHIB to reach a penny, it's highly unlikely this will happen.

The biggest developments are coming up this year and have the potential to explode this coin. The Shibarium and the Shiberse are two major Shiba Inu developments that crypto analysts say will be a game-changer for this project. Shibarium, a layer-2 scaling solution, is widely anticipated because of the impact it is going to have on this coin.

Shibarium is a scaling protocol designed to scale Ethereum, which is the network that Shiba Inu is running on. With the launch of this scaling protocol, the Shiba Inu project will significantly reduce the amount of gas that users have to pay when transacting SHIB.

Is SHIB crypto a good investment?

If you are considering investing in high-risk cryptocurrency tokens, including Shiba Inu (SHIB), we recommend that you always do your research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any trading decision. Keep in mind that past performance is no guarantee of future returns. Whether the Shiba Inu token is a suitable asset for you will depend on your risk tolerance and how much money you intend to trade. Never invest money that you cannot afford to lose.