.png){kind=logo}
- Insights
- Cryptocurrencies
- Stocks
- White Papers
- Industry
- Geography
- Insights
- Cryptocurrencies
- Stocks
- White Papers
- Industry
- Geography
Shiba Inu investors are hopeful about SHIB token price reaching 1 cent in 2022. However, SHIB will have to increase 403 times to reach 1 cent ($0.01) this year. In the year 2021, Shiba Inu had risen 60 times in 6 months.
The meme coin with the fluffy dog Shiba Inu came into the limelight after its launch as investors were looking for the next bitcoin (BTC) to invest in, but the real push was in last year May when it rose 2405% in just three days and hit a fresh peak of $0.0000388 on 10th May. The rally was primarily due to an interview of Elon Musk where he termed DOGE as a "hustle", which triggered a sell-off in DOGE and fresh buying in SHIB.
The prices of meme tokens are so reactive to Elon Musk's tweets that they jumped after the Tesla CEO tweeted a photo of a Shiba Inu puppy in a Tesla vehicle on 4th October. Other similar currencies like Dogecoin and Shiba Floki (FLOKI) had met a similar fate.
In late November 2022, a couple of positive news like a listing on the Kraken exchange and an announcement by e-commerce retailer Newegg that it will accept SHIB as payment buoyed the price. Another positive factor is the appointment of gaming veteran William Volk. On 8th December, SHIB revealed that a strategic work-for-hire contract was signed with Playside, the Australian video game developer. The plan is to develop a multiplayer Collectable card game. Luckily, on the same day of exchange Bitstamp announced to list SHIB, the following day on its platform. These factors contributed to taking the upside of the price. A petition on Change.org is demanding popular exchange Robinhood to list Shiba citing the presence of rival Dogecoin. The petition also states that Binance has listed SHIB and it led to a 16% price uplift. The petition is growing stronger and currently has over 556,000 signatures.
Shiba Inu has failed to make much progress in 2022 and the price has remained slightly over $0.00002 for the most part of the year. However, one should not ignore the historical data of Shiba Inu. In 2021, this meme coin soared by a whopping 45,000,000%. The ongoing situation may not be favorable for the rise of this coin but one cannot ignore the fact that once the situation improves, investors may once again flock to buying Shib tokens.
Increasing trust in the Shiba Inu ecosystem can also be considered as one reason why Shiba should be part of long-term investment. There has been news of Ethereum whales purchasing Shiba Inu tokens in bulk. Whales are the ones who own a great deal of cryptocurrency. If the ETH whales are shifting to Shiba Inu, it is evidence of increasing trust for the Shiba Inu ecosystem. The fact that Shiba Inu developers are transforming the coin into more than a "Meme Token" is attracting the big whales towards it. This year this meme coin is believed to be launching a layer-2 scaling solution and also entering the world of the metaverse.
A large number of Shib tokens need to be burned to reduce the Tokens in Circulation. In theory, this should increase the value of each remaining coin. Every day several million coins are burned but the burn rate is very low. On the 14th of February, a burn party was organized to burn millions of Shib Tokens. Shiba Inu is set to introduce its own blockchain-like transaction system Shibarium. Recently a test run of Shibarium was done which led to a massive spike in the price of Shib tokens. Shibarium would be a layer 2 solution like Matic which means that while it would still be using Ethereum as Layer 1, transaction speeds and Gas revenues will give a big leg up to Shiba Inu.
If Shiba Inu reaches a 1 cent valuation with a market cap of $5.89 trillion, it will be more than what the US government raises in annual taxation ($4 trillion). As SHIB is based on Ethereum ERC20, it does not make sense that Shiba Inu's market cap can surpass Ether's market cap. To meet the $0.01 target, a significant number of SHIB coins will have to be burnt. Cryptocurrencies like Bitcoin and Dogecoin have their independent blockchain and are standalone currencies. They have a mining system, backed by thousands of mining computers that are keeping the system alive and running. But SHIB is an ERC 20 token-based cryptocurrency similar to Binance Coin and Tether. So SHIB token is not offering anything new to investors to push its market cap to such huge levels.
Companies like Apple, Tesla, and Google are precious companies making excellent products that are unanimously liked by customers and that is why they are trillion-dollar companies. SHIB does not create any product and it is only a currency backed by a community therefore it does not have any inherent value in the long term.
On a concluding note, Shiba is an altcoin, implying that a strong community is requisite for the success of Shiba. Fortunately for the Shiba ecosystem, it is backed by a strong community and it had 43 more million views than Bitcoin in 2021. For Shiba Inu to rise again and achieve an all-time high, it must be backed by the bulls of this community.
Disclaimer: The information posted in the article is for educational purposes only. By using this, you agree that the information does not constitute any investment or financial advice. Do conduct your own research and reach out to financial advisors before making any investment decisions.
