The self-proclaimed Dogecoin killer followed the red wave sweeping through the broader crypto market, with its price collapsing to its lowest level since May 2021.

In a sudden twist of events, though, it reclaimed its position as the second-biggest meme coin.

Trailing Behind DOGE Again

SHIB has slipped by another 15% over the past week and currently trades at around $0.000004104 (per CoinGecko). Perhaps the most evident reasons for the pullback are the bearish conditions across the entire market and waning interest in the meme coin niche.

Other potential factors include the recent whale activity. The X account BSCN revealed that a Shiba Inu investor who purchased 17.4% of the token’s supply in August 2020 for less than $14,000 has moved 600 billion SHIB (worth $2.83 million) to a ForwarderV4 address.

While some interpreted the move as a pre-sale step, BSCN clarified that nothing has been confirmed yet and promised to unveil further details in time. The X account also noted that the whale’s position was worth a whopping $9.1 billion when SHIB’s price reached an all-time high in 2021.

Speaking on the meme coin was also James Wynn. The trader, known for his highly risky crypto bets, described the asset as “old, dead, and boring,” predicting a potential revival in 5-10 years when “a bit of nostalgia” can bring it back.

Despite its price slump, SHIB has once again secured its position as the second-largest meme coin. This happened after MemeCore (M) nosedived by 76% in a single day amid allegations of manipulation. Dogecoin (DOGE) remains the undisputed leader of the niche with a market capitalization of almost $11.5 billion, while SHIB has less than $2.5 billion.

More Pain Ahead?

The crypto market’s conditions remain unstable (to say the least), which could result in further declines for SHIB in the near term. The rising amount of tokens stored on crypto exchanges is another bearish factor.

Earlier in June, the figure dropped to a five-year low, but since then it has headed north sharply, suggesting that investors have been abandoning self-custody solutions and moving to centralized platforms, thereby increasing the likelihood of an additional sell-off.

Source: CryptoPotato