Negative sentiment around the Shiba Inu token remained strong after the token failed to recover after falling further in price. In addition to a negative performance in the market, the Shiba Inu lost its place in the top 10 large coins and tokens by market cap, losing its position in favor ofAVAX, Dogecoin and DOT.
SHIB’s market capitalization hemorrhage
Over the past month, Shiba Inu’s market cap has been even more volatile than its price, with a sudden surge in early December and a strong plunge that began on December 28.
During the 1,000% increase in SHIB, the market capitalization of the token has reached $ 50 billion, overtaking industry giants like Solana and entering the top 5 according to Coingecko. But due to high volatility and a large number of short-term traders, the sudden drop in prices triggered panic selling which caused the asset’s capitalization to drop. to $ 17 billion.
The unexpected recovery began on December 20, when the meme-token’s market capitalization rapidly increased from $ 15 billion to $ 21 billion in less than 5 days. But the recovery didn’t last long and ended soon after.
The performance of the Shiba Inu market
Although the asset brings significant profits to some holders and investors, in the current state of the asset, the majority of traders and of investors lose their money holding SHIB. The token has lost over 60% of its value since its all-time high and does not appear to be showing signs of a recovery.
While whales and big addresses continue to buy the asset, most retail and private traders exited the asset. The current composition of holders suggests that the asset is mostly held by medium to long term investors, which is generally considered a healthy sign for a token or coin in the long term.