In December 2020, deposit contracts and the implementation of the Beacon Chain, a straightforward proof-of-stake (PoS) coordination mechanism, signaled the beginning of Ethereum’s (ETH) move to PoS in a purely technical sense. The whole validation method was predicted to convert to proof of stake (PoS) in September 2022.
The Market’s Attention Is Shifting Away from Altcoins with No Ties to Ethereum
After Ethereum’s successful Merge, the market’s attention is centered on Ethereum; as a result, other cryptocurrencies unconnected to Ethereum and unable to be mined will begin to incur a more significant loss after the disclosure of the unexpectedly high CPI statistics.
Regrettably, Shiba Inu is considered to be one of these assets.
The price of Shiba Inu has been holding steady at the fundamental support level for the last three trading days. A breach of this level might send the token sliding back to this month’s or maybe even this year’s lows.
Because investors are unlikely to be ready to tolerate yet another drop in value, an occurrence of this nature has the potential to be terrible for the meme-based cryptocurrency.
Since losing more than twenty per cent of its value in October 2021, SHIB has recovered the same percentage since June 2022, providing investors with hope for the long and medium term.
Even though the token’s inflows have been reallocated to holders and the project’s underlying growth has been strong, a significant amount of the token’s inflows have come from speculative trading. This is because the token’s underlying growth has been enormous.
Is It Possible That Shiba Inu May Go the Way of Dogecoin?
According to the volume profiles, the current trend in Shiba Inu, which can be described as either a consolidation or a low-volatility ascending trend, will most likely continue into the middle term. The fundamental reason for this is the market’s aversion to assets that carry a high-risk level and highly speculative tokens.
In many ways, Shiba Inu is following in the footsteps of Dogecoin, another cryptocurrency that began as a joke but drew massive amounts of cash and had a series of rallies that resulted in significant gains for confident investors.
However, as time passed, investors fled the memecoin due to its poor performance and declining interest. This was caused by its inability to attract users and generate sustainable value.
Shiba Inu has had a price change of 1.7% over the last 24 hours, trading at $0.000012 at the time of this writing. Dogecoin’s price dropped by a nickel to $0.06 today, joining the ranks of other cryptocurrencies whose values have fallen over the last day. These include Solana, XRP, Polygon, Uniswap, Avalanche, and many more.