Until recently, the stock market experienced one of the strongest rallies in history after a bear market. It took just over a year for the benchmark S&P 500 to double in value from its intraday low. But compared to the cryptocurrency space, equity gains look like peanuts.
Since the March 2020 pandemic low, the global value of digital currencies has catapulted nearly $1.6 trillion, translating into a move of more than 1.100%. While Bitcoin and Ethereum, which account for about 62% of the total value of the cryptocurrency market, are responsible for a significant portion of this rise in face value, it is lesser-known coins such as Shiba Inu that are attracting masses of new cryptocurrency. investors.
Shiba Inu’s historic gains have attracted new crypto investors.
If you’re wondering “Why Shiba Inu ?”, look no further than his dazzling performance from last year.
On January 1, 2021, a single token SHIB can be purchased for the microscopic sum of $0.00000000073. But in less than 10 months, those same coins will hit their all-time high at $0.00008841. By subtracting six zeros after the decimal point, SHIB achieved a record profit within the year of over 121,000,000%. In other words, investing $1 at midnight on January 1, 2021, would have made you a millionaire, from the peak of the SHIB on October 27.
Even taking into account that shiba inus sold significantly by the end of 2021, it is unlikely that we will ever see an annual gain of about 46,000,000% for a crypto asset again. These kinds of life-changing profits are more than enough to attract new investors.
Secure, shiba inus had help. Thus, the dynamics of the cryptocurrency market contributed to the success of this hitherto unknown token. While it’s relatively easy to bet against stocks by shorting stocks and/or buying derivatives (such as put options), those same tools don’t necessarily exist in the cryptocurrency space. With the exception of bitcoin, there are no derivative options for betting against lesser-known digital currencies. In addition, not all cryptocurrency exchanges allow short selling. All this has led to a natural buying bias that shiba inus fully utilized.
More sight didn’t hurt either. A number of cryptocurrency exchanges chose to put SHIB on the list last year. Coupled with the July launch of the decentralized exchange ShibaSwap, this has created a scenario where the exchange’s liquidity has dramatically improved in a very short period of time.
Can Shibarium and Metaverse Talk Push SHIB to $0.0001 by the End of 2022?
But according to the more than 1.14 million sole owners of Shiba Inu, their token could offer a new achievement in 2022 (and beyond). If a new 46,000,000% profit is not on the agenda, an almost fivefold increase in value to $0.0001 – SHIB tokens change hands at the time of writing for $0.00002064 – could be possible by the end of the year.
The biggest catalyst in 2022 is the expected public launch of the in-house developed Tier 2 blockchain project, Shibarium.
Without going into technical details, shiba inus is a token built on the Ethereum blockchain. While Ethereum is a highly reliable blockchain, being tied to this popular network means dealing with Ethereum’s high transaction fees and occasional processing delays. The goal of Shibarium is to reduce the cost of transaction to use SHIB cheaper as a means of payment.
At this time, no launch date has been set for Shibarium. Earlier this year, however, it was reported that Shibarium was undergoing a second round of private testing. It is still expected to be ready for its public launch in mid-2022, which is fast approaching.
Shibarium is key to ecosystem development of shiba inus† The developers previously announced that they plan to create blockchain-based games and sell digital plots called “Shiba Lands“, in its own iteration of the metaverse† These Shiba lands, as well as characters from blockchain-based games, are stored as non-replaceable tokens (NFTs). For an NFT market to thrive, transaction costs must be minimal hence the importance of successfully launching Shibarium as soon as possible.
If we consider that Shiba Inu has been one of the cryptocurrencies the most wanted in the United States in 2021, it is possible that the social networks will give SHIB a boost by making him eat another zero.
Shiba Inu’s “show-me” moment may disappoint.
However, virtually all signs and data indicate that the probability of shiba inus hitting $0.0001, let alone ending the year there is extremely weak.
The most glaring problem with shiba inus is that it is indistinguishable from thousands of other innovative cryptocurrency projects. As an ERC-20 token built on the Ethereum blockchain, SHIB is ultimately nothing more than a currency of payment. The market value is surrounded by other projects that offer smart contracts and the ability to develop decentralized financial and non-financial applications. Without a groundbreaking utility, it’s hard to imagine shiba inus also remains relevant in the long term.
Shiba Inu isn’t even a payment currency particularly popular or important. Cryptwerk’s online business directory lists only 659 merchants accepting SHIB as payment, and the vast majority of these merchants are unknown. Given the high transaction costs and increased volatility of shiba inusit is unlikely that a large number of merchants will accept it as a form of payment.
Another reason to be skeptical about shiba inus is the rapid decline in interest in NFTs and metaverse investments. Interest in searches is between mid-January and mid-April google Trends for the term “NFT” decreased by 65%. In order not to be left behind, search interest in the term “metaverse” is down nearly 75% since the end of October. After the launch of Shibarium, there is a good chance that the games and metaverse projects of shiba inus disappoint.