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Shiba Inu (SHIB), the biggest competitor of Dogecoin and the second largest memecoin in the market, has experienced a turbulent price movement over the past few months, continuing to unsettle its investors.
SHIB made an incredible price movement towards the end of 2021, making many of its investors rich, and then settled down and started to decline. Since then, this sharp decline has sparked debates among analysts about its true value.
The Future of Shiba Inu
There is still uncertainty about the price of SHIB. While some analysts argue that SHIB is undervalued, others believe that SHIB is nothing more than an overhyped cryptocurrency.
However, recently emerged data provided an opportunity for analysts to shed light on the potential value of SHIB and the points it could reach in the future.
One of the indicators supporting the view that SHIB’s price is low is the NVT ratio shared by IntoTheBlock. The NVT ratio is the comparison of a blockchain’s native token market value to its total transaction value over a certain period. Currently, when SHIB’s NVT ratio is calculated, it appears to have dropped from its highest level in the past year, which was 788.59, to 172.
Considering this situation, it can be thought that SHIB’s value may be lower compared to other cryptocurrencies. Because the amount of value transacted on the blockchain is considered relatively low compared to its market value.
SHIB Price Analysis
Another indicator supporting the view that SHIB’s value is low is the MVRV ratio. Speaking of what the MVRV ratio is, it can be described as the evaluation of a cryptocurrency’s market value against its realized value.
When SHIB’s MVRV ratio is examined, it has a ratio of 0.34. This ratio appears significantly lower compared to the past. Based on this, it would not be wrong to say that a large number of SHIB investors are currently at a loss. This strengthens the view that SHIB may have experienced excessive selling and may indicate a potential buying opportunity for investors.
Finally, it is important to be cautious when considering the value and potential of a cryptocurrency. Investors should avoid relying solely on technical indicators. SHIB, which is relatively still new in the crypto world and does not have a deep-rooted history unlike other cryptocurrencies, can be considered to have a higher risk ratio compared to its competitors.
