Shiba Inu defies crypto market bears with over 30% return in one year, surpasses Bitcoin

At the moment, both Shiba Inu and Bitcoin are trading in the red. The leader Bitcoin has deleted its $ 20,000 limit.

At Coingecko, at the moment, Bitcoin is trading at $ 19,818.35 down 3.1%. The market value is around 378.37 billion dollars, meanwhile the market dominance is around 41.125%.

At the same time, Shiba Inu is trading at $ 0.00001033 lower by 5.7% with a market value of $ 6.09 billion. Unlike Bitcoin, Shiba Inus’ dominance is at a fraction of the market at 0.662 %%. But Shiba Inu is a new time-stable currency and Bitcoin has held up for more than a decade.

According to Coingecko data, in one month, Bitcoin has fallen by more than 30%, and the annual decline is more than 42%. On the contrary, Shiba Inu has achieved an increase of almost 11% in one month and shot up by at least 31.5% in one year.

According to the platform Coin98 Insights, over $ 600 million has traded volume for meme tokens in the last 24 hours, and Shiba Inu has witnessed massive demand. Shib recorded around $ 332.6 million in traded volume, followed by $ 273.6 million in Dogecoin and $ 6.5 million in Elon.

From its lowest level in September 2020, Shiba Inu has climbed with a fantastic 1,25,81,233,91%. The token’s return on investment (ROI) is 6,367,771.46%, according to 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. The Shiba Inu and SHIB tokens 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 less valued tokens have attracted investors who missed the Dogecoin pump from $ 0.0002 to almost $ 0.75.

Meanwhile, the broader crypto market is struggling with a tight liquidity situation. Many crypto exchanges such as Binance, Celsius, CoinFlex, Vauld and Voyager Digital, among others, have stopped their withdrawals due to strong sales in cryptocurrencies which wiped out significant wealth, and even led to the collapse of hedge funds such as Three Arrow Capital (3AC) which has selected settlement.

Amanjot Malhotra, head of India at Bitay Global earlier today, said through his Twitter account, “It’s not just crypto companies that are withdrawing,” adding, “Chinese banks have also stopped withdrawals and set limits and people are scared. “

Bitay Head expects the move to take place worldwide.

Texas, which has emerged as the largest crypto-mining hub in the world using computing power, has forced miners to shut down their machines as they prepare for a heatwave that is expected to hit their grids near the breaking point. Miners such as 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 the Texas Blockchain Council, told Bloomberg that “There is over 1,000 megawatts worth of Bitcoin mining load that responded to ERCOT’s conservation request by shutting down their machines to save energy for the grid,” adding, “This represents almost all industrial scale Bitcoin mining load in Texas and allows over 1% of total network capacity to be pushed back online for retail and commercial use. “

The closure could affect the miners’ profitability as the heat wave is likely to keep their machines off, which could increase energy prices and further stress the state’s power grid. In particular, miners are already struggling to repay debt and raise extra capital due to the decline in Bitcoin prices. This year, the shares of public miners have fallen by about 75%.

Last month, Jaran Mellerud analyst at Arcane Research highlighted that Bitcoin mining companies continue to feel the pressure from four angles: 1) lower bitcoin price -> less valuable block reward; 2) increased difficulty -> more energy is required to extract bitcoin; 3) rising energy prices -> higher production costs for bitcoin; and 4) rising interest rates and reduced investor interest -> higher capital costs.

Going forward, Bitcoin’s performance will depend on US inflation data scheduled for tomorrow.

Vetle Lunde, analysts at Arcane, said that US inflation releases have been linked to volatile days in the crypto market, with the last two CPI releases creating chaos in the market. The expected April CPI release on May 11 saw bitcoin plunge by 6%. But while some of this carnage may be linked to CPI, it also happened during the collapse of UST and Luna, which was probably the key component of BTC’s crash then.

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