Could the Shiba Inu Coin Attain a Cent Dollar Value by 2025?
Could the Shiba Inu Coin Attain a Cent Dollar Value by 2025?
As of 12 noon on December 19, the overall worth of the cryptocurrency sector surpassed $3.4 trillion, nearing record levels. Market participants, particularly those inspired by the election results and believing in a pro-crypto administration, are eagerly anticipating future gains.
The limelight is mostly on Bitcoin, but investors are also driving up the prices of more risky cryptocurrencies. Consider Shiba Inu, represented by the ticker SHIB (-3.95%). In the past six weeks, this meme token has surged by 41%.
At present, it still lags 80% behind its peak from October 2021, trading around $0.000022. Can Shiba Inu, which has potential eyeing the coveted $0.01 mark in 2025, make a comeback?
For potential use
The concept behind Shiba Inu was born out of Dogecoin's success. Launched in August 2020, its purpose was to provide more functions compared to its canine-inspired counterpart. This is the reason Shiba Inu operates on the Ethereum blockchain, making it compatible with a wide range of decentralized applications.
Moreover, developers are working on upgrading the Shiba Inu network. Potential developments include purchasing virtual land in a proposed metaverse and implementing Shibarium, a Layer-2 scaling solution for faster transactions and lower costs.
Theoretically, Shiba Inu's focus on technical updates should boost adoption. However, this doesn't seem to be the case, which is disheartening for its long-term prospects.
As per DappRadar, the total value locked (TVL) in ShibaSwap, a decentralized exchange within the Shiba Inu universe, is currently $23 million. This figure remains unchanged from a year ago.
Cryptocurrencies often benefit from a first-mover advantage, a large scale, and network effects. In comparison to Ethereum, which has a TVL of $72.2 billion, nearly tripling within a year, Shiba Inu struggles to compete in terms of real-world utility.
Fear of missing out, greed, and excitement
Shiba Inu has managed to secure a spot as the 14th most valued cryptocurrency, with a market cap of around $13 billion. It's important to note that this achievement is primarily due to hype and speculation among traders seeking quick profits. Following Shiba Inu's meteoric price surge during the 2021 bull run, similar trends might be repeating themselves as fear of missing out (FOMO) and greed drive market behavior.
Betting against it
I am confident that the market anticipates a more accommodating regulatory environment for the crypto sector. However, Shiba Inu's lack of competitive strengths makes it impossible for me to advocate investing in it for the long term. I am also skeptical about the token's price reaching the astronomical $0.01 mark by 2025, which would break its previous record of $0.00008845.
At $0.01, Shiba Inu's market value would be an astounding $5.9 trillion (based on the current token count), surpassing the value of major tech giants shaping our economy today. While it may seem far-fetched, Shiba Inu is unlikely to ever reach the penny mark.
In conclusion, anyone who invests in Shiba Inu is not following sound investment principles. Instead, this behavior can be likened to gambling, as it relies on a completely unpredictable outcome. I would recommend leaving Shiba Inu out of your investment portfolio.
Despite the momentum in the cryptocurrency market, it's crucial for investors to exercise caution when considering investments like Shiba Inu. Given its reliance on hype and speculation, investing money in Shiba Inu may not be a financially prudent decision, as it aligns more with gambling than sound investment principles.
Moreover, even if the broader crypto sector continues to perform well and see further gains, it does not automatically guarantee that Shiba Inu will match or surpass its peers in terms of growth. As such, it's essential to approach investing in Shiba Inu with a clear understanding of its risks and potential limitations.