Since the inception of Bitcoin in 2009 when virtual tokens came to light, crypto investors have been sniffing for the next big winner always. Fortunately, those who went after memecoins like Dogecoin and Shiba Inu became big profiteers in recent years. But 2021 is solely dedicated to Shiba Inu's growth. The cryptocurrency recorded a phenomenal 82,651,174% over the last year alone. However, despite the price rally it has experienced, SHIB's value has fallen ever since. Therefore, we explore if the memecoin has the potential to break the odds to make it big or will it fall to its previous value in 2022.
Shiba Inu is a meme-based cryptocurrency created by an anonymous person or a group called 'Ryoshi'. Although SHIB calls itself a 'Dogecoin Killer', the idea of the memecoin itself was born out of its native currency DOGE. Yes, Dogecoin was launched in 2013 after the memes featuring Shiba Inu dog went viral on the internet. After its popularity, Dogecoin was created. DOGE maintained a low profile for a long time before hitting the mainstream crypto market in 2020. Once Dogecoin was doing well, many other memecoins came to the play. One of the foremost creations is ShibaInu. Similar to its native cryptocurrency, SHIB also maintained a low key for a long time since its inception in August 2020 and only hit the real market in 2021. Shiba Inu is popular for its short-term dips and rises, allowing investors to pump and dump their assets for potential earnings.
Famous names like Elon Musk and Mark Cuban are long-time supporters and influencers of memecoins. In November, Shiba Inu reached record-high pricing and eventually toppled its competitor, Dogecoin briefly. An online petition on Change.org to add SHIB at Robinhood exchange has gained 300,000, which eventually triggered the cryptocurrency's price. On the other hand, its NFT announcement and investors' FOMO (fear of missing out) contributed to the price rally. However, despite the buzz, it is all silent since the beginning of December. Therefore, ShibaInu investors are really worried about what is coming forth in 2022.
It is not just Shiba Inu that is suffering from the recent cryptocurrency trend. Almost many digital tokens including Bitcoin and Ethereum are experiencing a downward trend. However, investors show less importance to those cryptos as they know mainstream tokens have a bounce value and will be back on track in some way or the other. But memecoins could be different.
At the time of writing, SHIB tokens were traded for US$0.00003777 with a market capitalization of US$24.39 billion. According to experts, US$0.000036 is a major resistance that Shiba Inu broke recently. They also worry that if the memecoin falls behind the number, then it will trigger a quick new low in the coming days, which could eventually follow in 2022. Since the beginning of December, SHIB's price has dropped 45%. Experts suggest that this upswing is resting below US$0.0000620 and set up a swing low at US$0.0000295.
A major tactic that cryptocurrency makers use to trigger its price is causing inflation. Shiba Inu is also set to create scarcity by burning a massive amount of tokens. Currently, there are 589,736,561,989,744 SHIB tokens in circulation. The massive burn could reduce the total circulation.
Besides, Shiba Inu founder has also revealed that the burn is expected to open the door for the memecoins to enter the metaverse space. Ryoshi revealed that The ShibaInu Core Devs (SICD) is working on developing its metaverse called 'Osiverse'.
After flying high in October and November, Shiba Inu investors are worried about how the memecoin is taking its path in 2022. Although the cryptocurrency is notoriously volatile and hard to predict, many new investors believed in its price rally and invested big money. We explore some valid aspects that could push SHIB behind its currency value.
Memecoin investors mostly buy the coin to sell it when it reaches a record high. However, since Shiba Inu is already keeping a downward trend, there are chances that the large holding accounts might opt for a sell-off. This will eventually push down SHIB's price in 2022.
Although Shiba Inu entering mainstream crypto exchanges like Binance and Coinbase is a good thing, it has the capability to trigger volatility. When platforms provide an easier way to exchange SHIB for fiat currencies, investors will get real-world profit while the memecoin's value will fall.
Unlike Bitcoin and Ethereum, SHIB's acceptance among institutional investors and payment modes is comparatively less. Shiba Inu is accepted as payment only by about 100 global vendors.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.