Shiba Inu : The cost of the wildly popular meme token dropped by 75% between now and 2022.
Shiba Inu : With 2022 all but gone, crypto investors can be content to get their heads back in 2023, after the cryptocurrency winter that has engulfed the entire market and caused the momentum that began to grow in 2021 to an abrupt slow halt.
Its meme coin Shiba Inu ( SHIB 16.53 percent) has not been saved, dropping by about 75% by 2022 and having a $4.9 billion market capitalization. The cause is the fallout from one of the biggest cryptocurrency trading platforms, FTX and FTX has been declared bankrupt and has received the media swarm with negative reviews. Regulators are also taking action. Other business is suffering from the FTX fall as uncertainty has been a factor.
Despite the grim prospects, crypto-bulls are arguing that it’s an ideal time to invest in the dip, and that the industry will see better times ahead. Will Shiba Inu climb to an estimated $10 billion market value in 2023? Let’s have a look.
Looking at the catalysts
There are numerous reasons why this bears might be negative for the token. There is no particular usage case that could be a good fit for Shiba Inu. Certain networks and tokens can be utilized to disrupt specific industries or perform specific tasks however Shiba Inu is only equipped with the capabilities of peer-to-peer payments which almost all cryptocurrency have.
This is due to the fact that Shiba Inu doesn’t have its own network. It’s actually an ERC-20 token. This means it’s constructed on Ethereum. Ethereum system and has a specific set of features that make it flexible, transferable and having a predetermined amount of tokens. Shiba Inu does have a fixed supply, however it’s 1 quadrillion tokens which isn’t an ideal supply-and-demand arrangement for investors.
The only Shiba Inu-specific catalyst which does appear interesting is the expected release of the Beta version Shibarium. Shibarium is an advanced layer 2 scaling solution that is based on the protocol of Shiba Inu and will create more of a unique networking system specifically that is specifically designed for Shiba Inu.
This can result in less transactions (or gas) costs for those using this. Because it’s an ERC-20 token that is subject to congestion, any issue on Ethereum results in congestion for users of Shiba Inu and the increase in gas costs. Shibarium is also believed to have a burning mechanism that will allow tokens to be burned with each transaction, which will help decrease Shiba Inu’s enormous supply.
Apart from that, being the 16th-largest cryptocurrency of this will also probably benefit if the cryptocurrency industry recovers. In order for that to happen to happen, in order for that to happen, the Federal Reserve will need to stop the ferocious interest rate increases that have been going on for the entire year. Rate increases make the more risky assets less appealing and there are few riskier assets than cryptocurrency, which is more difficult to appraise than stocks.
Furthermore, I believe that the FTX scandal will require further investigation before investors can regain confidence in the market. The collapse of a major crypto exchange has affected a variety of other large crypto firms. Investors are likely to need to see this outbreak stopped.
