What happened
Popular meme token Shiba Inu (SHIB 1.19%) is once again on the move. Today, Shiba Inu is down 3.5% over the past 24 hours, as of 11:45 a.m. ET.
This move comes despite a number of catalysts this week. Yesterday, Shiba Inu burned more than 1 billion tokens, accelerating the deflationary trajectory of this token. Additionally, a new Shiba Inu official communication portal was launched, leading to what many hope will be increased communication between the developer team behind Shiba Inu and the #ShibArmy.
Unfortunately, the crypto market has continued selling off, with portfolio de-risking and profit taking continuing today. Larger-cap tokens such as Ethereum and Bitcoin have once again seen smaller declines than higher-risk meme tokens, as investors appear to be looking for safe havens across various asset classes of late.
Image source: Getty Images.
So what
Shiba Inu's community-driven model, and increasing use cases on this blockchain, provide investors with tangible reasons to own this token. Initially created as a joke, the developers behind Shiba Inu have consistently added more utility for users, recently starting a token burn program and increasing communication with investors.
However, it remains clear that Shiba Inu's risk profile relative to other digital assets remains elevated. Investors looking to create a well-diversified crypto portfolio appear to be rotating out of meme tokens such as Shiba Inu and into more defensive large-cap tokens today.
Now what
This rotation has been underway for some time, and today simply seems to be a continuation of a longer-term trend. As we approach year-end, investors looking to evaluate their investments certainly may see Shiba Inu's recent momentum and take a pass on this token.
Shiba Inu's recent moves have been driven by extreme momentum on the upside as well as the downside. With Shiba Inu moving in the wrong direction, investors may be looking for other higher-growth crypto tokens with positive momentum, or simply tokens that may be viewed as safe haven assets.
