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With just three days left before we say goodbye to 2021, it is purely evident that we will see another amazon year for cryptocurrency and its adoption. Cryptocurrencies started the year at a market capitalization of US$774 billion and managed to surpass US$3 trillion before it has ended. Although mainstream digital tokens like Bitcoin and Ethereum contributed to the surge, memecoins including Shiba Inu and Dogecoin also played a major role in grabbing the attention of new investors. Shiba Inu's price went from US$0.000000000073 on Jan 1 to US$0.00003654 at the time of writing. The whopping 65,246,475% growth made new investors try their hand on SHIB tokens.
Over the past year, memecoins' popularity has increased drastically. CoinMarketCap has labeled Shiba Inu as the most popular cryptocurrency, surpassing the buzz around Bitcoin and Ethereum. Currently, SHIB is being placed at the thirteenth position with a market capitalization of US$20 billion. The memecoin managed to hit an all-time high of US$0.000088 in October and took over Dogecoin's crown as a native memecoin for a while. It happened when a petition on Change.org demanding Robinhood to add SHIB to its portfolio gained 300,000 signatures. Besides, Shiba Inu's initiative towards NFT and FOMO among investors helped the coin perform well for a while. However, the popularity didn't last long. SHIB lost its position in the top 10 cryptocurrency list and is now traded for a moderate value. But crypto investors are open to such volatility and uncertainty. After betting on Bitcoin that has given 8,000,000,000% gains in the past decade, enthusiasts are willing to take up any risk. They are using social media platforms as a major medium to promote their ideologies.
However, crushing investors' expectations, Shiba Inu didn't experience a Santa Claus Rally this Christmas season even when Bitcoin managed to perform above US$50k. According to predictions, SHIB will gain value even without a Santa Claus rally once its steps into 2022.
The cryptocurrency market has outperformed stocks and mutual funds in 2021. But within the memecoin community, it is all about survival. Yes, the next generation of cryptocurrencies is expected to conquer those grounds and SHIB could be on board to do so. Features like gaining the trust of institutional investors, amazing use cases, leniency towards easy transactions, etc will contribute to its growth.
Shiba Inu currently has 1 million holders while it's direct rival Dogecoin has 4 million. In order to gain more investors, SHIB should engage in partnerships and make the token acceptable as a payment option. Besides, it should reduce the transaction cost when compared to Bitcoin and Dogecoin.
To be precise, Shiba Inu didn't have a smooth Christmas this year. The memecoin's price faced a major resistance at US$0.00004000 and barely managed to stay above US$0.00003000. Although Shiba Inu's price went on a short rally, the resistance level seems unbothered by it. But retrieving from the short Christmas rally is also dangerous as it could result in a 20% fall in the coming days.
Bigger Entertainment, the company behind the Spotify Technology SA playlist that burns Shiba Inu tokens with every song streamed, had a trailblazing plan for Christmas. The company held a Christmas party on Dec 26 and burned 176 million SHIB tokens at the time. By engaging in a massive burn, investors can save gas fees for separate burns. This will eventually reduce the number of coins in circulation and give value to the existing ones.
Shiba Inu generate incredible hype in 2021. But with the colors fading away, we see its potential to make a comeback in 2022. According to predictions, SHIB will surely breach its previous high of US$0.000084 in Q1 of 2022 but will maintain the value throughout the year. The prediction further suggests that ShibaInu will reach US$0.0001 in 2023.
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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.
