BackShiba Inu defies crypto market bears with over 30% return in a year, outperforms Bitcoin
Shiba Inu has emerged as a success story with returns of more than 31% in a year. The token has also outperformed the leader Bitcoin.
PremiumCryptocurrencies are in disarray due to global volatile markets, macroeconomic uncertainties, fear of recessions, monetary policy tightening, and dampening of investors' confidence. Surprisingly, there is one stablecoin, in particular, that was defying this trend. This would be none other than Shiba Inu, one of the top stablecoins listed on cryptocurrency exchanges. Shiba Inu is famous for its unique token which is inspired by a very special dog and has gained quite a popularity in a short period. The crypto market is struggling currently with the valuation diving below $880 billion on Tuesday. Major cryptocurrencies have taken a massive beating due to panic selling resulting in hefty losses for investors, exchanges, and others. But amid the chaos and pressure, Shiba Inu has emerged as a success story with returns of more than 31% in a year. The token has also outperformed the leader Bitcoin.
Currently, both Shiba Inu and Bitcoin are trading in the red. The leader Bitcoin has erased its $20,000 mark.
On Coingecko, currently, Bitcoin is trading at $19,818.35 down by 3.1%. Its market cap is around $378.37 billion, meanwhile, market dominance is around 41.125%.
At the same time, Shiba Inu is trading at $0.00001033 lower by 5.7% with a market cap of $6.09 billion. Unlike Bitcoin, Shiba Inu's dominance is of a fraction in the market to the tune of 0.662%%. But Shiba Inu is a new age stable coin and Bitcoin has stayed for more than a decade.
As per the Coingecko data, in a month, Bitcoin has nosedived by over 30%, and the yearly decline is more than 42%. On the contrary, Shiba Inu has made a nearly 11% gain in a month and skyrocketed by at least 31.5% in a year.
According to platform Coin98 Insights, in the last 24 hours, over $600 million traded volume for meme tokens with Shiba Inu witnessing massive demand. In Shib, about $332.6 million in traded volume was recorded followed by $273.6 million in Dogecoin and $6.5 million in Elon.
From its all-time low in September 2020, Shiba Inu has climbed by a breathtaking 1,25,81,233.91%. The token's return on investment (ROI) is 6,36,771.46%, as per CoinMarketCap. Meanwhile, Bitcoin's ROI is around 14,573.3%
On the CoinMarketCap website, it is said, Shiba Inu aims to be the Ethereum-based counterpart to Dogecoin's Srypt-based mining algorithm. Shiba Inu and the SHIB token are part of a swarm of dog-themed cryptocurrencies, including Baby Dogecoin (BabyDoge), Dogecoin (DOGE), JINDO INU (JIND), Alaska Inu (LAS), and Alaskan Malamute Token (LASM). These lesser-valued tokens have attracted investors who missed the Dogecoin pump from 0.0002 to nearly 0.75 USD.
Meanwhile, the broader crypto market is struggling with a tight liquidity situation. Many crypto exchanges like Binance, Celsius, CoinFlex, Vauld, and Voyager Digital among others have halted their withdrawals due to sharp selloffs in cryptocurrencies wiping out significant wealth, and even leading to a collapse of hedge funds like Three Arrow Capital (3AC) who have opted for liquidation.
Amanjot Malhotra, India Head at Bitay Global earlier today through his Twitter account said, "It is not just crypto firms halting withdrawals," adding, "Chinese banks have also stopped withdrawals and put limits and people are scared."
Bitay Head expects the move to happen all over the world.
Also, Texas which has emerged as the largest crypto-mining hubs by computing power in the world, has nudged miners to shut down their machines as they brace for a heat wave that is expected to hit their power grid to near its breaking point. Miners like Riot Blockchain Inc., Argo Blockchain Plc, and Core Scientific Inc., operate millions of energy-intensive computers to secure the Bitcoin blockchain network and in return earn rewards in the token.
Lee Bratcher, president of Texas Blockchain Council told Bloomberg that “There are over 1,000 megawatts worth of Bitcoin mining load that responded to ERCOTs conservation request by turning off their machines to conserve energy for the grid," adding, “This represents nearly all industrial scale Bitcoin mining load in Texas and allows for over 1% of total grid capacity to be pushed back onto the grid for retail and commercial use."
The shutdown may impact miners' profitability as the heat wave is likely to keep their machines off which may spike energy prices and further stress the state's power grid. Notably, miners are already struggling to repay debt and raise additional capital due to the decline in Bitcoin prices. This year, shares of public miners have nosedived by approximately 75%.
Last month, Jaran Mellerud analyst at Arcane Research highlighted that Bitcoin mining companies keep feeling the pressure from four angles: 1) lower bitcoin price -> less valuable block reward; 2) increased difficulty -> more energy is required to mine bitcoin; 3) rising energy prices -> higher bitcoin production costs; and 4) rising interest rates and decreased investor interest -> higher costs of capital.
Going forward, Bitcoin's performance will depend on the US inflation data which is scheduled for tomorrow.
Vetle Lunde, Analysts at Arcane said, U.S. inflation releases have been affiliated with volatile days in the crypto market, with the two most recent CPI releases creating havoc in the market. The above-expected April CPI release on May 11th saw bitcoin plunge by 6%. However, while some of this carnage may be affiliated with CPI, this also occurred during the collapse of UST and Luna, which was likely the key component in BTC’s crash then.
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