Shiba Inu's Market Cap Drops 90%, Increasing Investment Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Poor Market Performance: Shiba Inu has seen a decline of approximately 90% since its market cap peak in 2021, and while it still holds a market cap of around $5 billion, the lack of fundamental catalysts makes its investment outlook for 2026 quite pessimistic.
- Token Supply Reduction: Although Shiba Inu has implemented mechanisms to reduce circulating supply, the actual number of tokens removed from the market is almost negligible, failing to generate any positive market momentum and diminishing investor confidence in its future.
- Metaverse Project Failure: Shiba Inu's metaverse initiative launched early access at the end of 2024 after numerous delays but failed to evolve into an active virtual world, with extremely low engagement levels, indicating a significant setback in its efforts to create a vibrant ecosystem.
- Bitcoin Cash's Relative Strength: In contrast, Bitcoin Cash has risen approximately 44% over the past year with a market cap of about $12.7 billion, attracting some investors due to its lower transaction fees and processing speeds, although it still lags significantly behind Bitcoin's $1.8 trillion market cap.
Analyst Views on BCH
Wall Street analysts forecast BCH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BCH is 31.67 USD with a low forecast of 27.00 USD and a high forecast of 35.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 39.780
Low
27.00
Averages
31.67
High
35.00
Current: 39.780
Low
27.00
Averages
31.67
High
35.00
About BCH
Banco de Chile is a full service financial institution, which is engaged in providing credit and non-credit products and services in Chile. The Bank offers a range of banking services to its customers, ranging from individuals to corporations. The Bank's segments include Retail, which focuses on individuals and small and medium-sized companies, where the product offering focuses on consumer loans, commercial loans, checking accounts, credit cards, credit lines and mortgage loans; Wholesale, which focuses on corporate clients and companies, where the product offering focuses on commercial loans, checking accounts and liquidity management services, debt instruments, foreign trade, derivative contracts and leases; Treasury, which includes the associated revenues to the management of the investment portfolio and the business of financial transactions and currency trading, and Subsidiaries, which corresponds to companies and corporations controlled by the Bank.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
