What To Know Shiba Inu struggles as NEAR Protocol rapidly closes critical market capitalization gap. NEAR attracts institutional liquidity through staking products and upcoming blockchain net
What To Know
Shiba Inu is struggling to maintain its position among the largest cryptocurrencies as capital continues flowing into utility-driven blockchain projects. According to CoinMarketCap data, SHIB currently ranks 29th with a market capitalization of nearly $3.24 billion, while NEAR Protocol has reduced the gap to around $50 million.
NEAR’s strong performance throughout May has increased pressure on SHIB and other meme-based assets. According to the report, NEAR surged by 138% during the month as investors expanded exposure to artificial intelligence and privacy-related blockchain infrastructure.
Meanwhile, liquidity entering the meme coin sector has continued weakening. Investors now appear more interested in projects offering technological upgrades and institutional investment products instead of speculative trading activity. Consequently, SHIB has struggled attracting substantial new market demand.
According to the report, nearly 81 trillion SHIB tokens remain on exchanges, creating continued pressure across order books. Analysts believe that oversupply remains one of the biggest obstacles preventing stronger price recovery for the token.
Source: CoinMarketCap
Also Read: Coinbase Expands Institutional Banking Access Through Standard Chartered Partnership
NEAR Protocol strengthened its position through growing institutional participation and increasing derivatives activity. According to the report, Bitwise’s European NEAR Staking ETP expanded to approximately $40 million in trading volume as investor demand continued climbing.
Additionally, futures open interest linked to NEAR reportedly reached record levels with support from BitMEX co-founder Arthur Hayes. Traders have also increased exposure ahead of the project’s dynamic resharding upgrade expected in June.
The report further explained that recent regulatory developments connected to privacy transactions encouraged larger investors to redirect liquidity toward compliant privacy-focused ecosystems. Hence, blockchain projects tied to that sector gained stronger momentum across the market.
Earlier this week, SHIB briefly slipped to the 30th position before recovering one place higher. However, analysts described the rebound as weak because new capital inflows continued favoring utility-driven blockchain ecosystems instead of meme coins.
Also Read: Ripple Issues Fresh Suggestions to SEC For Tokens Like XRP and RLUSD: Details
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