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One of the popular investment options in 2021 was Shiba Inu (SHIB). It soared to astonishing heights in the beginning and returned 74,000,000%. Yet, SHIB has since come down 79 percent from its high, as market enthusiasm subsided.
Now, analysts and investors are wondering whether SHIB can break its “ambitious” $0.01 target. To achieve this goal, value would need to increase by a remarkable 538 times. So, to determine if this will be a milestone, we need to look at both the state of the market and Shibs' unique qualities.
Shiba Inu was initially based on a meme crypto coin inspired by Dogecoin. Unlike most meme currencies like Dogecoin, it runs on the Ethereum blockchain, which enables greater compatibility with many decentralized applications. Meanwhile, while being an innovative attempt, SHIB has difficulties becoming a genuine payment method.
SHIB’s limited utility is underscored by the fact that only 991 merchants currently accept payment in SHIB. Therefore, many investors wonder if this long term viability. In addition, the volatile nature of the cryptocurrency market makes the future of SHIB uncertain as well.
All these developments have made SHIB more useful through recent developments like the Shibarium layer 2 solution. The goal of this initiative is to decrease transaction costs and speed. In fact, SHIB’s user base and adoption have not grown significantly with such updates.
New competitors in the cryptocurrency space are trying to take over, and Shiba Inu is fighting to regain its previously lost glory. The presale rounds of DTX Exchange (DTX) have gained a lot of traction. While over 15 million DTX tokens have been sold at $0.08 each, the platform has drawn interest from many investors.
Unlike DTX Exchange, most other crypto exchanges maintain a custodial model in which they act as trustees of your funds; in real terms, this means that they hold the right to your private keys. DTX has positioned itself as a trustworthy option in the market at this level of security. This means that more and more investors choose DTX over conventional cryptocurrencies, like SHIB.
Despite the attention Shiba Inu still gets, it is unable to compete with projects like DTX. It looks like the market is in favour of new platforms that provide better functionality and security. There were chances that the shift in investor sentiment would affect the PoW coin, SHIB’s possibilities of getting to $0.01.
With all that hell and pain of which to write, Shiba Inu’s dedicated community keeps on finding ways to grow. Such a development might bring a metaverse and a layer 3 update into play that might pique users’ interest again. But whether these projects will translate into meaningful adoption is unknown.
If SHIB is to reach $0.01, Market analysts believe its use case must improve significantly and its acceptance must be broader. In fact, an increase in market demand and whale accumulation could lead to higher prices. However, critics reject such ambitious targets without ensuring the existence of sustainable developments.
Lastly, while Shiba Inu is recoverable, $0.01 seems pretty much out of reach. That means the cryptocurrency has to leap many hurdles and make a stronger presence in the market. SHIB’s future is hard to predict as new projects like DTX Exchange start becoming popular in the competitive landscape.
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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.
