Shiba Inu Coin, a Dogecoin rival based on the same breed of dog has lately seen its price drop a little.
In late October, it hit a new high of $0.000088 but has since declined to $0.000046. Shiba Inu dropped sharply towards the end of October, owing to a whale withdrawing $2.3 billion from their crypto wallet.
Despite this, the meme cryptocurrency has increased by more than 60,000,000% in the previous year. It presently has a market capitalization of slightly less than $26 billion. But what is it that makes it so popular, and can it be predicted if it will continue to grow? Here’s all you need to know.
What to know about Shiba Inu
Shiba Inu token is a decentralized cryptocurrency launched by an unknown individual or organization known only as “Ryoshi” in August 2020. It’s an Ethereum-based cryptocurrency with a Shiba Inu dog as its symbol. Many people regard SHIB to be a Dogecoin alternative. The Shiba Inu currency, on the other hand, was designed to be the “Dogecoin killer.”
SHIB is a meme currency based on the Shiba Inu dog from Japan. Although Dogecoin has been existing since 2013, Shiba Inu was founded in August 2020 by an unknown individual or group known as Ryoshi as an inside joke rather than as a digital product with real-world usefulness.
The purpose of Shiba Inu’s originator, according to the 28-page whitepaper or woof paper, was to get away from strict social structures and archaic attitudes. Shiba Inu is intended to be a “decentralized spontaneous community building” experiment that returns authority to the “ordinary person.”
What made the Shib popular?
Shiba Inu is presently the 11th-largest cryptocurrency in terms of market capitalization. That means a token developed barely a year ago by someone going by the name Ryoshi and styled after a Japanese hunting dog is now valued at more than $30 billion—roughly double the market capitalization of Peloton Interactive Inc. and Albania’s GDP.
Shiba Inu was even able to momentarily outperform Dogecoin, its apparent forefather. Furthermore, the coin’s value remains higher than that of other blockchain networks under active development, such as Avalanche, Terra, and Polygon.
How did we end up here? Meme stocks live and die by attention, and SHIB, as the token is called, has a strange past that is founded in a PR gimmick. Early on, Ryoshi offered half of the Shiba Inu supply to Ethereum co-founder Vitalik Buterin, who is well regarded and well-known in the cryptocurrency community.
Buterin was obviously surprised that someone had mailed him trillions of SHIB without his knowledge. “I don’t know what they were thinking distributing those coins to me,” he told Bloomberg. This April, he gave $1 billion in tokens to Covid-19 relief efforts in India. Victory was declared by the Shiba Inu website.
Buterin’s departure secures “our long-term prosperity and stability,” according to the website. It also quotes Ryoshi, saying, “Thank you to the woofmeister for enabling real decentralization.” The price plummeted following Buterin’s gift as he sold coins, but SHIB’s renown endured. By October, its worth had risen into the tens of billions of dollars.
It can be difficult to determine the rationale for market movements in Bitcoin and Ether, much alone Shiba Inu. However, a handful of factors are likely to have aided the dog-themed cryptocurrency.
Aside from Buterin’s care, there’s also the ridiculously low pricing. You may get a lot for a small amount of money, making it more enjoyable and low-stakes than equivalent bets. Shiba Inu has also generated popular NFTs, cementing its position in crypto awareness.
In some respects, the fact that SHIB is blatantly ludicrous is beneficial. “This is counter-culture, cult material, and its adherents exult in it.” “The more ridiculous it is, the better,” Antoni Trenchev, co-founder of crypto lender Nexo, remarked. “It’s like an inside joke—except that as it spreads, the number of individuals in on the joke can reach millions, driving values out of this world.”
SHIB holders, of course, do not value investors, and the coin’s price is volatile. For example, its value recently dropped nearly 25% in one day when a Shiba Inu whale (someone who owns a substantial fraction of the outstanding supply) looked to be selling a portion of their holding. And the market is still down from its October highs.
Shiba Inu coin price prediction
The SHIB price has dropped from its all-time high of $0.00008841 in October to $0.00004405 now (3 December). Can it keep that price? According to CoinCodex, at the time of writing, the technical analysis revealed that short-term sentiment on SHIB was negative, with 11 indicators indicating bullish signals and 14 indicating bearish signals.
The daily simple and exponential moving averages were indicating that it was time to sell. The Relative Strength Index (RSI) was 49.95, which is considered neutral. The RSI ranges from 0 to 100, with 70 indicating overbought and 30 indicating oversold.
Wallet Investor’s SHIB crypto price forecast deemed the currency to be an “excellent” long-term investment. Its Shiba Inu price estimate for the beginning of 2022 is $0.000044, but it believes the price will grow to $0.000093 by the end of 2022 and will surpass these highs by the end of 2025, when the algorithm predicts SHIB will trade at $0.000244.
The DigitalCoin Shiba Inu (SHIB/USD) estimate is expected that the price will reach $0.000064 in 2021, increasing to an average of $0.0000813 in 2022, and $0.00008843 by 2023. The algorithm predicted that the price will average $0.0001276 by 2025.
Longer-term, Coin Price Forecast predicted that the Shiba Inu coin price will stay erratic, rising from $0.000526 at the end of 2025 to $0.000531 in 2026, then climbing to $0.000761 by the end of 2028 before rising to $0.000877 in 2030.
The Sun quoted Marie Tatibouet, chief marketing officer of crypto exchange Gate.io, as saying she anticipated the Shiba frenzy to die down. “I do see some correction coming in the near term as the hype dies down a bit,” she said. Jordan McCreery, a founding partner of Ingrained Media, is significantly more optimistic.
“I believe Shiba has some real potential to grow from its fraction of a cent amount to $0.01 or greater,” he said. According to Don Guo, CEO of the finance business Broctagon, Shiba Inu will never hit $1. “In order for SHIB to reach a dollar, it requires a market capitalisation of one quadrillion US dollars,” he told The Express.
“By comparison, the whole US national debt is $23.3 trillion — yet even that astonishing number represents less than 3% of the money necessary for SHIB to reach that pricing threshold.”
“Given current trends, it is more likely that Shiba will remain within its ballpark of less than a fraction of a cent.”
It’s vital to remember that cryptocurrency markets are still incredibly unpredictable, making it impossible to anticipate a coin’s price in a few hours, and even more difficult to make reliable long-term projections. As a result, experts and internet forecasting services may make incorrect projections.
Should you invest in the Shib?
People invest at their own risk, and British financial authorities do not oversee cryptocurrencies.
All cryptocurrency investments are dangerous, but meme currencies like Shiba Inu are more volatile, and you should expect to lose everything you invest.
“Investing in cryptoassets, or investments and lending connected to them, often involves accepting extremely high risks with investors’ money,” the Financial Conduct Authority (FCA) said in January.
“If consumers invest in these types of product, they should be prepared to lose all their money.”
The outstanding community Shiba Inu has developed is one of the aspects people contemplating the SHIB token would point to as reasons to hold this cryptocurrency. Despite the existence of over 10,000 cryptocurrencies as of May of this year, only a few are likely to survive as viable networks in the long run. The cryptocurrency tokens with the largest communities are often seen as safer than those with little following.
Given Shiba Inu’s social media popularity, as well as the different support this token has gotten (directly or indirectly) from notable personalities, there’s a case to be made that this is a token with the potential to be significant in the long term. After all, the coin was launched as an experiment in community-powered cryptocurrencies.