Shiba Inu (SHIB) plummeted during the crypto market crash of May and this led to a significant decline in the market value of one of the most popular meme-inspired currencies.
Shiba Inu remains the second-largest meme-inspired digital currency by market capitalization in June 2022. Despite the steep decline in the price of SHIB, the token is among the top 20 digital assets by market value. SHIB closed the fifth month of the year with a market capitalization of around $6.44 billion, according to Be[In]Crypto Research.
This was a 45% decrease from the opening day’s market value. On May 1, SHIB saw a trading volume in the region of $848.06 million and this corresponded to a market capitalization of around $11.85 billion.
Why the waning market capitalization?
A broader sell-off of cryptocurrency by holders in 2022 which gained roots in December 2021 and worsened during the week of May 9 to 13 can be credited as the primary cause for the fall in the market capitalization of Shiba Inu.
In May, the number of large transactions involving SHIB reached a high of 343.71 million at a price of $0.000017 on May 10.
This corresponded with a large transaction volume of 20.36 trillion SHIB (1 SHIB was $0.000017) which was approximately $346.12 million.
On May 10, SHIB opened at $0.00001439 and reached an intraday low of $0.00001375. Trading volume was in the region of $1.92 billion and corresponded to a market capitalization of around $8.91 billion. This was a 24% fall in Shiba Inu’s opening day market value. Due to the drop in price that saw SHIB on the path to new high lows, the token could not recover for the rest of the month.
SHIB price reaction
SHIB opened on May 1, at $0.00002018, reached a monthly high of $0.0000205 on the same day, tested a monthly low of $0.00001017 on May 27, and closed the month at a price of $0.00001173. Overall, this equates to a 41% decrease between the opening and closing price of SHIB in May.
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