When you assess the ups and downs in the cryptocurrency world of 2021, what do you see? Assessment will show if investors enjoyed great profits or if last year was a downer. One coin that played a dynamic role was the Shiba Inu coin, affectionately named after the adorable Japanese dog breed. That brings us to the big question in cryptocurrency: Can Shiba Inu hit $0.01 in 2022? Here’s our prediction:
During the start of December 31, 2021, the gross value of all the cryptocurrencies stood at $2.22 trillion. This marks a staggering jump of over 185% since the start of the year. Moreover, on comparing the S&P 500 was up by 27% as well. Crypto being in the stock market is a new theme that has been welcomed amicably in these recent years.
The market value of 2021 was mostly composed of the coins Ethereum and Bitcoin. There was another emerging currency that pulled the investors towards its potential and rose among the top.
Talking about the stock market, for a stock to rise by 10,000% is not topical and is hardly encountered. While in the cryptocurrency market, rising by 1000,000% in one year is not a frequent occurrence. Hence, if a coin surpasses or reaches this kind of growth, the world runs towards it and invests openly. Shiba Inu is one of those coins which rose to the heights in 2021 that no one anticipated. It is presented by (CRYPTO: SHIB) in the market.
The Crypto market favored the Shibas in 2021
According to reports, on the morning of 1 January 2021, investors could buy Shiba coins for a measly price of $0.000000000073 each. That means they could add millions of Shiba coins at a very small price. If it were to rise, there would be an unbelievable profit or loss.
So let’s continue with the assessment. Minutes before the New Year, the price for the same tokens shot up to $0.000034, which was still a very small price for one token. However, in terms of percentage increase, the number added up to an increase of 46,500,000%!! That means even if someone did a puny investment of $42.15 at the start of the year, they would make $1 million by the end of the year.
Now the question is, how is this possible? How can a token rise up by 46,500,000% in just 1 year? For starters, it must be the blend of the hype around it, market model and other catalysts.
How Shiba Inu has grown
The catalyst was the clever move of listing Shiba Inu in multiple exchanges over the year. The launch of its own decentralized exchange, Shiba Swap, in July, was another factor. Both these moves helped the number of Shiba investors increase to 1.1 million, according to records of Etherscan.
The Shiba Swap exchange also allows people to garner passive income and, hence, makes it a more lucrative coin. It is also a big attraction point for inelastic buyers who are usually risk-averse. Backed by the top number of crypto searches by far in the year 2021.
At last, the market structure of the crypto world also served as a catalyst for Shiba. As the people who are betting on the price of the stock or coin to decline. These people put on their bids in the stock market by purchasing options, and other derivatives.
However, this is not possible or very rare in the crypto market. It is hardly possible beyond the only two prominent names in the market. Hence, the limitations imposed on short-sellers have given some extent of benefit to the coin.
Will Shiba Inu reach $0.01 in 2022?
When you scour the internet and check social media pages, you will see fans rambling over Shiba. Many have called for it to rise over and engulf one more 0. Some have even prayed for Shiba Inu to reach the magnificent price of $0.01 this year, 2022. Hence, the question that follows is, will that really happen?
To make it very clear and not run around in circles, our calculations tell us it is a no. There are 4 main reasons to back this assumption. The most prime of them is that the notion of the coin reaching $0.01 is a fantasy. This has been doing the rounds in the minds of retail investors after seeing such a spike in a year.
To support this, currently, there are 16,200+ tokens in the crypto space, according to CoinMarketCap.com. To reach the top, the coins need to come up with authentic, unique, and highly competitive features. This requirement is fulfilled close to none with Shiba Inu.
For now, this token is only an ERC-20 coin that is created on an Ethereum blockchain. It is currently riding the wave of high transactions and lacking processing periods that are typical for the Ethereum network. Moreover, the excitement from social media is not a very sustainable reason to believe that the price will spike.
Shiba Inu in the real world
The second reason to say that this coin won’t reach $0.01 is that the token provides a utility that is almost negligible in the real world. According to Cryptowerk, an online business directory, there are only 394 businesses that deem Shib as a legible mode of exchange out of the crypto exchange market, and 44 out of these are crypto exchanges themselves.
Hence, 350 businesses are accepting this as exchange payment. Some positive minds would say, it is a good start. However, it cannot have a $19 billion value in the market with zero use in a pragmatic sense.
The third reason is the many instances in history that go against this forecast. When a coin charges up to over 24,000%+ in a small window, an even more drastic fallout follows.
For example, Nano rose by 461,000% in 10 months and fell by losing over 99% of its value in just 26 months.
The last reason is the not-so-realistic expectation of Shiba Inu attaining $0.01 in 2022. Since 549 trillion Shiba coins are in the market, the above-mentioned price would make its value $5.49 trillion. The figure is double the valuation of Apple. This is due to the zero utility of Shiba coins in the real world.
Make sure you consider all these points and ask yourself: “Should I invest in the meme coin now?”