At the beginning of the 20th century, there was no investment model as reliable as stocks. Although stocks have their downsides, people still choose them over other investments like gold, oil, housing and bonds to reap good benefits in the long run. A decade later, things changed when Bitcoin debuted. People who believed that stocks could help them grow their money and turn it into cryptocurrency. Today, the digital token market is much more than that. While mainstream cryptocurrencies like Bitcoin and Ethereum are still in the running, other meme coins like Shiba Inu and Dogecoin are gaining value like never before. In particular, SHIB is the currency most expected to gain a meme value before 2022. But will that really happen? We explore.
Memecoins are cryptocurrencies born from memes and jokes on the internet. Dogecoin was the first ever meme coin to debut in 2013. Although it was seen as a unique and weird investment model, people just talked about it but didn’t invest. Years later, in 2020, Dogecoin hit the mainstream following the Reddit movement by honest investors who used subreddits to drive the meme coin. In the end, DOGE was also accepted into sporting events as a source of payment and AMC Entertainment also opened its door to cryptocurrency. The growing popularity of Dogecoin interested in creators to achieve copycat results. One of them is the Shiba Inu. Today, Shiba Inu is no longer seen as a version of Dogecoin since memecoin managed to push DOGE for a while and took the 8th place in the top 10 cryptocurrency list. Shiba Inu price also reached an all-time high of $0.00008841 on October 27, recording a total of 17,335,194% since the start. But dropping SHIB by zero one from its value still seems a distant reality. In this article, we explore the performance of Shiba Inu and discuss whether the meme coin could devour an additional zero of its value anytime soon.
Shiba Inu trip so far
Shiba Inu was created by an unknown person or people called “Ryoshi” in August 2020. Based on the Ethereum network, SHIB declares itself a “Dogecoin Killer.” Currently, Shiba Inu is transitioning from Proof of Work (PoW) to Proof of Stake (PoS) as Ethereum is undergoing a renewal process. Memcoin was created after the success of DOGE in 2020.
Similar to Dogecoin, the Shiba Inu price also remained low for a long time before hitting the mainstream. At the beginning of October 2021, Elon Musk, the godfather of Dogecoin, posted a picture of a Shiba Inu puppy on Twitter. This move had a direct impact on SHIB as it indicated that a price hike was imminent. Subsequently, a Change.org petition asking Robinhood to add Shiba Inu to their trading portfolio garnered more than 300,000 online signatures. This eventually led to a sharp rise in prices that pushed SHIB to a record high. Preparing to launch a set of non-fungible tokens (NFTs), containing 10,000 shibushi characters, also contributed to the price hike. Besides, people have been buying Shiba Inu for FOMO (fear of missing out). But after this rise, the price of the Shiba Inu has returned to a moderate state. At the time of writing this report, the price is 0.00004141 USD.
How does gray hairs make an echo?
While there is an intense debate about whether or not Shiba Inu is off the radar, memecoin is already recording small developments and breaking new milestones. Recently, SHIB’s official Twitter account surpassed 1.8 million followers, surpassing the social media of the world’s second cryptocurrency, Ethereum. This indicates that the so-called SHIB Army is more dead and is in play to expand the popularity of the digital token.
Take notes from history
The field of cryptocurrency is very volatile and not all expectations are fulfilled here. However, we can take some cues from history to anticipate what is approaching us. Similarly, the sudden price hike of Shiba Inu can be compared to the price hikes of Ripple and Litecoin in the past. According to the direction they suggest, Shiba Inu price may be heading for a real loss of 90% soon. Yes, the price of XRP rose to $3.3778 in 2018 from the previous $0.0054 with a record increase of 62452%. Litecoin also experienced a gain of 24,613% in a very short period. However, both cryptocurrencies suffered a 90% crash after the price hike.
Can the Shiba Inu drop another zero this year?
It is highly unlikely that SHIB will dip an additional zero from its price this year. But in the long-term, this may be possible as Wallet Investor notes that Shiba Inu has the potential to be a “cool” long-term investment. Expect its price at the end of 2021 to be 0.000048 USD but the price could rise to 0.000098 USD by the end of 2022. According to this proposal, the SHIB price will drop to zero in late 2022 or early 2023.
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