Why Shiba Inu fell today
What happened
Shares of shiba inus (SHIB -2.87%) continued to decline today as a report showed the meme coin’s trading activity hit a 12-month low, a sign that the meme-fueled boom that sent the cryptocurrency skyrocketing last year was fading. At the same time, the fallout from robinhood (HOOD 6.88%) The layoff announcement last week also seemed to weigh on Shiba Inu, as Robinhood had just started allowing users to trade SHIB, and many consider the trading platform to be synonymous with investing in memes.
As of 5:31 p.m. ET, the cryptocurrency was down 3.2% in the past 24 hours.
Image source: Getty Images.
So what
Shiba Inu joined Robinhood in April, but even that was only enough to generate a short-lived pop in its price and business. Transactions recorded in the crypto fell 70% in the first quarter compared to the previous quarter, and in April 2022, SHIB transactions fell to 216,260 from 329,893 in March, according to finbold.
This is accompanied by a broader decline in the value of SHIB, which is down more than 75% from its peak last October, as well as waning interest in cryptocurrency more generally.
Robinhood’s first-quarter report, released last Thursday, also highlighted that business activity among millennials that contributed to the crypto boom was drying up as the company’s overall revenue fell 43% to $299 million and crypto revenue fell 39% to $54 million. .
Now what
There was good news for Shiba Inu as well, as 22 billion SHIB tokens were burned in the past week. With 549 trillion coins in circulation, trillions of them will need to be burned for the asset to have any chance of reaching $1, as the bulls hope.
For now, however, headwinds appear to be mounting against SHIB, with both Robinhood and SHIB trading activity down. The days of the play as a meme star might be over.