Shiba Inu might bounce back, but right now, investors are willing to sell the crypto for smart investments

Recently, Dogecoin killer, Shiba Inu, rose to fame after its brief victory knocking off the top position as the meme coin king. Over the past couple of months, SHIB rose immensely within a very short period of time. Experts believe that much of the spike is especially due to the rumors that the coin will be listed on the trading platform Robinhood. After these rumors, Shiba Inu investments rose drastically. Even though Robinhood has not yet listed the coin, the platform has accepted that it is considering Shiba Inu as an option to allow investors to trade and sell on their platform. The coin 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 Shiba Inu at this condition. In this article, we have listed such top signs indicating that it is time for the investors to sell Shiba Inu in 2022.

Experts say the community growth is fake

Shiba Inu backers have carefully cultivated an online community that focuses on trading and promoting cryptocurrency and related NFTs. Now, they have taken a step further by attempting to restrict the SHIB supply and increase its market value. The community members have destroyed over 239 million and 400 million tokens respectively in December and November. But no matter how many tokens they burn, the demand keeps falling at a potentially higher rate, resulting in a market crash.

Its functionalities are still weak

The demand for SHIB tokens is hugely affected by its fundamentals. Shiba Inu's fundamentals and functionalities are still weak, which also caused Ethereum's network to suffer making it face soaring fees, that went up as high as US$30 per transfer. Shiba Inu's developers will wait until ETH's planned upgrade can resolve these challenges. In the meantime, SHIB can continue working on expanding its functionalities and creating an immersive metaverse experience. 

SHIB possesses no edge over others

Shiba Inu is an ERC-20 token, that is built on top of Ether's blockchain. While this makes it interoperable with the Ethereum network as well as with DApps running on it, Shiba Inu is constrained by the limitations of the bigger blockchain. And for a programmable blockchain that utilizes smart contracts like Shiba Inu, it's all about attracting more developers to the ecosystem. There have been several reported incidents revolving around the speed, scalability, and accuracy of the network.

Possesses very fewer real-world use cases

Major cryptocurrencies like Bitcoin, Ethereum, and Solana, to name a few have disrupted the global economic and financial ecosystem. For a coin to have legitimacy over the long term, there needs to be real-world utility. But when it comes to Shiba Inu, the coin has not made much headway. Shiba is far behind in the dApps market, like Uniswap, OpenSea, and Axie Infinity, in terms of use cases and its implementation.

Still no institutional adoption

There are many cryptocurrencies that 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 Shiba Inu only for short-term investments, and not choose it as a long-term investment asset.

SHIB's ownership is way too concentrated

The token lacks utility and is heavily concentrated with very few accounts, both of which create a substantial risk for the investors. If just a few of those token holders decide to cash out, there might be an occurrence where Shiba Inu prices may implode significantly. 

Shiba Inu has heavy-weight competitors

Even though Shiba Inu is considered one of the biggest meme coins in the market, the crypto has even bigger competitors, besides Dogecoin, which include Ethereum, Solana, and Cardano. These cryptos are gaining popularity and defining the cryptocurrency market of the future. The kind of growth that these cryptos have portrayed has left out other cryptos like Shiba Inu behind. Community support alone cannot push Shiba Inu beyond what it is presently. 

The emergence of more crypto regulations

Most investors are interested in cryptos due to their decentralized, unregulated nature, making investors feel like they own a piece of asset that is outside the government infrastructure. But the absence of regulations is like a double-edged sword. The presence of regulations in the market can bring unforeseen circumstances, driving away several investors. This phenomenon does not only limit itself to Shiba Inu. Other cryptocurrencies will also face regulations in the coming years.

Very limited potential for gains

Its been several days, but the SHIB token has failed to reach the US$1 value or more. Bitcoin drove the value of the entire crypto market to US$3 trillion within a matter of months, whereas Shiba Inu has very limited potential for gains, discouraging investors from getting on board with the crypto.

Shiba Inu's popularity is fading

Long-term SHIB investors are now realizing that it is futile to try to swim upwards. The crypto has not been performing well, and its chances of success are much lower than anticipated. However, the crypto holders believe that in the future Shiba Inu will bounce back to reveal its true potential.