Shiba Inu investors are optimistic that the price of the SHIB cryptocurrency would reach one cent in 2022. On the other hand, SHIB will have to increase 403 times in 2022 to reach 1 cent ($0.01).
Shiba Inu had increased 60 times in 6 months in the year 2021.
The Upward Surge
The Shiba Inu meme coin surged to prominence following its inception as investors looked for the next bitcoin (BTC) to invest in, but the major push came in May of last year, when it rose 2405 percent in three days and reached a new high of $0.0000388 on the 10th of May. The rally was sparked by an interview with Elon Musk in which he referred to DOGE as a "hustle," prompting a sell-off in DOGE and new buying in SHIB.
Meme token prices have risen in response to Elon Musk's tweets, including after the Tesla CEO tweeted a photo of a Shiba Inu puppy in a Tesla vehicle on October 4th. Dogecoin and Shiba Floki (FLOKI) are examples of similar currencies that have failed.
Positive news, such as a listing on the Kraken market and an announcement by e-commerce company Newegg that it will take SHIB as payment, boosted the price in late November 2022. Another plus is William Volk's appointment as a gaming veteran. SHIB announced on December 8th that it has inked a strategic work-for-hire agreement with Playside, an Australian video game developer.
The goal is to create a collectible card game that can be played by multiple people. Fortunately, Bitstamp announced on the same day of the exchange that SHIB would be listed on its platform the next day. These variables all contributed to the price going increased. Due to the availability of rival Dogecoin, a petition on Change.org is urging popular exchange Robinhood to include Shiba. According to the petition, Binance included SHIB, which resulted in a 16 percent price increase. The petition is gaining traction, with over 556,000 signatures to date.
Why Should We Choose Shiba Inu
In 2022, Shiba Inu did not make much progress, as the price remained barely above $0.00002 for the majority of the year. However, the Shiba Inu's historical facts should not be overlooked. In 2021, the value of this meme coin increased by 45,000,000%. The current circumstances may not be beneficial for the emergence of this coin, but it is impossible to dismiss the possibility that once the situation improves, investors will swarm to buy Shib tokens once more.
One reason Shiba should be part of a long-term investment strategy is to increase trust in the Shiba Inu ecosystem. The purchase of Shiba Inu coins in bulk by Ethereum whales has been reported. Whales are those who have a lot of cryptocurrency. If the ETH whales are migrating to Shiba Inu, it indicates that the Shiba Inu ecosystem is becoming more trusted. The fact that Shiba Inu developers are working to make the coin more than just a "Meme Token" is luring the big fish in. This year, it's expected that this meme coin will launch a layer-2 scaling solution as well as enter the metaverse.
Must-do Changes to be Taken in Q2
To minimize the quantity of Shib tokens in circulation, a considerable number of them must be burnt. This should, in principle, raise the value of each surviving coin. Several million coins are burned every day, but the burn rate is extremely low. On February 14th, a fire party was held to destroy millions of Shib Tokens. Shiba Inu is planning to launch Shibarium, a blockchain-like transaction system. A test run of Shibarium was recently completed, resulting in a huge increase in the price of Shib tokens. Shibarium, like Matic, would be a layer 2 solution, which implies that, while it would still use Ethereum as Layer 1, transaction speeds and gas income would provide Shiba Inu a significant advantage.
The Inevitable Challenges to be Faced
If Shiba Inu reaches a 1 cent valuation with a market price of $5.89 trillion, it will be worth more than the $4 trillion in annual tax revenue produced by the US government. Because SHIB is built on Ethereum ERC20, it is illogical for Shiba Inu's market cap to exceed that of Ether. To reach the $0.01 goal, a large amount of SHIB coins will need to be burned.
Bitcoin and Dogecoin, for example, have their own blockchain and are hence stand-alone currencies. They have a mining system that is supported by thousands of mining computers that maintain the system operational. However, like Binance Coin and Tether, SHIB is an ERC 20 token-based cryptocurrency. As a result, SHIB cryptocurrency isn't giving anything fresh to investors, which is why its market cap is so high.
Apple, Tesla, and Google are valuable companies that produce good products that are universally accepted by customers, which is why they are trillion-dollar businesses. SHIB does not manufacture any products and is just a community-backed currency, hence it has no long-term value.
Finally, Shiba is an altcoin, which implies that a robust community is required for Shiba's success. Fortunately for the Shiba ecosystem, it is supported by a large community, and in 2021, it had 43 million more views than Bitcoin. Shiba Inu must be supported by the bulls of this community if it is to rise again and reach an all-time high.