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Terra Luna Classic and Shiba Inu are two of the most loved cryptocurrencies. The battle for supremacy in cryptocurrencies is nothing new. One such rivalry between Terra Luna Classic vs Shiba Inu has been growing. Although crypto has been profitable for many investors since the pandemic bottom, not all cryptocurrencies will necessarily be winners over the long run. In other words, what's popular isn't always going to be profitable. These two cryptocurrencies are undoubtedly drawing the attention of crypto enthusiasts. The question is, between Terra Luna Classic vs Shiba Inu, which cryptocurrency will reach $1 first in 2023?
The truth is, no one can say with certainty when the Shiba Inu will reach $1. This is a crypto that is up by 1,294,881.3% since it was launched. In 2020, no one would have imagined that an investment of $100 in Shiba Inu (SHIB) would turn into millions of dollars a little over a year later.
Shiba Inu is one of the potential crypto to explode in 2023. Don't forget that Shib's price action has a lot to do with the performance of the broader crypto market. As such, if Bitcoin slows down in 2023, then Shib could either correct in 2023 or make marginal gains compared to its previous moves.
There is a solid historical basis to this assumption. A year before Bitcoin halving, the market is usually dull. It's usually a time for long-term investors to accumulate, and those in big profits from previous rallies to take profits. The next Bitcoin halving is scheduled for 2024, and after the pump that started in 2020, bull exhaustion could see the market trade sideways in 2023.
This could also be an opportunity for investors to accumulate SHIB ahead of 2024 when the next Bitcoin halving takes place. If the impact of the last halving is anything to go by, Shiba (SHIB) could easily rally to over $0.01 in 2024.
That's because, at this point, its fundamentals will be much better than when it first pumped in 2020.
For starters, a lot more people will be aware of Shiba Inu by 2024. For its potential to turn ordinary people into millionaires, many people could buy SHIB after the BTC halving of 2024 with similar expectations. This FOMO could see it rally by a couple of thousand percentages within that year.
Then there is the aspect of token supply. Shiba Inu started with a large number of tokens, a quadrillion of them, to be precise. However, at the moment, more than 50% of that supply is out of circulation. This is thanks to Shiba Inu's deflationary nature and Vitalik Buterin burning almost 50% of the total supply. Shiba Inu is designed in such a way that the more people use it, the more the supply drops. Due to its growth rate of adoption, its supply will be much lower by 2024. This could see SHIB pump to $0.01 within 2024.
Zombie token Luna Classic shocked the crypto market when it pumped over 500% in September, reaching a price of $0.00035, and making a few adventurous traders rich. More of the same and it's not hard to imagine Luna Classic entering the crypto top 20 by market cap once again.
The bullish case for a $3 Luna Classic is out the window for 2023. Burning Luna Classic will drastically reduce the market cap figures you saw above.
Say the community can burn 15% of all Luna Classic tokens, that then reduces the implied market required to reach 1 cent by $10 billion. Such a successful burn rate would not date to draw huge investment to Luna Classic.
Unfortunately, Luna Classic is way off track at present. After the burn rate was cut in October from 1.2% down to 0.2% of every on-chain (and Binance) transaction, the monthly burn rate fell from 18.8 billion LUNC to 9.2 billion LUNC. It would take at least 10 years to burn 15% of the LUNC supply if things stay the same.
In 2022, amidst the crypto winter, there's a considerable debate surrounding two of the most popular Shiba Inu and Terra Luna Classic. SHIB uses a proof-of-work mechanism that gives it a similar transaction rate to Dogecoin for all intents and purposes. In Terra Luna Classic vs Shiba Inu, any cryptocurrency could reach US$1 soon.
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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.
