Could Shiba Inu Reach $1 or More this Year?

Early Shiba Inu investors are writing down a whopping 44,600,000% gain in their books for last year and some believe that this is just the beginning. If you have taken the time to read up on our latest Shiba Inu analysis, you might have noticed that we believe that Shiba Inu is positioned very well, positioned to gain over 100%. Although a 100% gain at current prices will still be a very small step for the dog-themed token towards a $1 valuation, nothing is impossible in the world of crypto.

Well, although we might have baited you into clicking this article, let's get number crunching on why this is impossible for the time being and talk about what is actually possible. Shiba Inu's price is likely to rise a lot, but not to a dollar yet. Because if the dog-themed token were to be valued at a dollar, its market capitalization would have to be 590 trillion dollars. This would mean that it's market capitalization would have to be 650 times bigger than Bitcoin's market cap and bigger than 6 times the entire global gross domestic product of 2021.

So, if Shiba Inu's price isn't hitting a dollar, what price will it be hitting? If we knew the answer to this question, we probably wouldn't conduct all the analysis we do daily. But, taking into account some fundamental data, like the fact that Shiba Inu will launch its own blockchain in 2022 and that it was the most viewed cryptocurrency in 2021, we predict Shiba Inu to rise a lot in value over the course of the year. 

On the flipside, Shiba Inu's founder Ryoshi wrote on Medium that he is a bit scared that people will stop trading Shiba Inu if he decides to remove it from the ethereum blockchain. However, with every transaction over the ethereum blockchain now costing over $9, the continuation of trading on the ethereum blockchain makes virtually no sense. Shibarium aims to lower these transaction costs to a bare minimum. 

So Shiba, with all its positives, faces a risky year ahead, due to both its current valuation being so high for the current status of the project, and so many potential obstacles ahead for 2022.

It's interesting when we look at Shiba Inu at a $16.5 billion valuation and compare it to other projects at much lower valuations. One good example is EverGrow, a project with an incredibly impressive team and roadmap, serious fundamental value, yet just a $500 million market cap – Shiba Inu is 33 times more expensive than EverGrow, but most experts and analysts would say EverGrow is by far the more valuable project. So what explains this anomaly? Memes and marketing!

Shiba has a giant community and spends $10s of millions on marketing each year, where EverGrow focuses more on the fundamentals, than marketing for the sake of it. This hasn't stopped dozens of leading crypto analysts predicting EverGrow to be the one getting 10,000% returns in 2022, and could well leave Shiba behind.

There are also other factors that play a significant role in whether Shiba Inu will rise a lot in value or not. If more fiat onramp services and stock exchanges make the dog-themed token available for trading, this could lead to more adoption of the coin and drive up it's price accordingly. Add to this the overall bullish phase for the cryptocurrency markets and you have a strong catalyst for higher token prices. 

Currently, there are more than 1,1 million Shiba Inu holders and 78% of them are to be considered large holders. 51% of them being in the money at the current moment, an interesting number, signaling a bullish outlook. 

Furthermore, Shiba Inu is currently at a very interesting price point; the volume point of control. It's where the most buying and selling of an asset takes place. If Shiba Inu breaks out at $0,000032, its swing will be quite big. The downward potential is limited to around the $0,000020 range. Overall, things are still looking very bullish for Shiba Inu.