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Shiba Inu (SHIB) is on shaky ground regarding its ranking in the top 20 coins by market capitalization. The token is currently ranked as the 19th largest coin, as its price of $0.000007099 and market capitalization of $4.183 billion have catalyzed its displacement over time by the likes of Chainlink (LINK) and Bitcoin Cash (BCH).
Shiba Inu demotion triggers
Despite how promising Shiba Inu has been overall, its positive ecosystem trend has not technically translated into price growth for SHIB. The sustenance of this disconnect in fundamental and token performance will undoubtedly catalyze the fall of SHIB from the top 20 capitalized coins.
Notably, the poor performance of Shiba Inu is not exclusive to the meme coin, as other altcoins have also been falling at an alarming rate. However, the rate of fall differs and, as such, has pushed SHIB backward in the ranking. The token can also slip away from its high rank if its rate of fall, marked by sell-offs, exceeds those of its peers.
Though loyal, SHIB holders have been selling off their coins as the token's profitability has been nosediving over the past few weeks. This sustained sell-off is a bad omen if the trend is not reversed soon.
The surge in competing tokens also matters a lot. If altcoins like Avalanche (AVAX), Stellar (XLM) and Monero (XMR) pick up momentum, it can help topple Shiba Inu faster than is currently envisaged.
Banking on Shibarium
As noted earlier, Shiba Inu is a protocol with many things up its sleeves. Despite the general outlook in its price, the protocol is banking on the potential of Shibarium to maintain its resilience and chart a bullish reversal moving forward.
Shiba Inu hopes to do this by building a new suite of decentralized applications (dApps) that can drive usage and help build demand for SHIB, creating upward pressure on the price. In all, SHIB is on many traders' watch lists, and its growth trend is well positioned to determine how it acts moving forward.
Dan Burgin
U.Today Editorial Team
