A new report suggests that no. 2 memecoin Shiba Inu (SHIB) is headed for sharp losses this year, with a majority of market participants indicating “sell”.
A report from blockchain data firm Finder showed that 73% of panelists polled in a survey were of the opinion that traders should sell SHIB. Finder surveyed 36 fintech specialists through April.
The general consensus is that SHIB will gradually lose its value through 2022 and be valued near zero by 2030.
The token is already trading well below the report’s predicted level for end-2022. SHIB is now at $0.00001236, while the Finder report expects the token to finish $0.00001875. But this expectation is also from before the recent crypto crash, which saw SHIB slump to its lowest level since late-2021.
SHIB is down 1.7% over the past 24 hours, and has lost 63% of its value so far this year.
Why should you sell SHIB?
Analysts surveyed by Finder were of the general consensus that memecoins such as SHIB offered little utility, while their prices were supported by hype.
This market is maturing and things like SHIB will die as capital begins to flow to quality and value rather than being scattered across the field in the hope that every player wins a prize.
DigitalX Asset Management head of funds Matthew Harry told Finder
With market-changing events such as Terra’s recent crash, investors may become more discerning with what they buy. Rising inflation and interest rates are also expected to reduce liquidity- which had played a major role in SHIB’s rally through 2021.
According to Finder, technical indicators are also pointing towards selling the no.2 memecoin. SHIB is expected to slump to $0.0000025 by 2025, and be valued at near zero by 2030.
Can Shiba Inu add utility?
The project has made some attempts at introducing utility into its ecosystem. Earlier this year, SHIB launched a new metaverse and began selling virtual land that could offer staking rewards.
The platform has also introduced NFTs and tokens that offer utility directly on its blockchain.
But Finder analysts opine that despite these efforts, “hype” is largely expected to drive the token’s gains through 2022. And with markets currently under harsh pressure, hype may be a hard thing to come by.
The token also still has its believers. Recent data shows that ETH whales are consistently accumulating the token at lower levels.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
