Prior to a month ago, the market capitalisation of all cryptocurrencies plummeted below $1 trillion ($3.67 trillion) from its October 2021 peak of $3 trillion (Dh11 trillion). However, the figures have improved since, providing optimism and relief to those on the scene.
Nevertheless, while many believe it to be the beginning of a bull run (a period during which prices of are generally rising), analysts are unsure if this is the case.
The cryptocurrency market cap increased due to the good performance of Bitcoin, Ethereum, Binance Coin, and other leading cryptocurrencies. Among these stunners is Shiba Inu (SHIB), which surged by about 61 per cent in one month, from 0.000008053 on June 20 to 0.00001297 on the afternoon of July 20.
Meme crypto token Shiba is making headlines
SHIB is an August 2020-launched token that aims to be an Ethereum-based alternative to the popular meme coin Dogecoin (DOGE). SHIB’s meme token acquired speed and value rapidly as a community of investors was attracted by its cuteness, headlines, and tweets from notable figures such as crypto billionaire Elon Musk and Ethereum co-founder Vitalik Buterin.
In addition, unlike Bitcoin, which is designed to be scarce, SHIB is abundant and has a total supply of one quadrillion units. At the time of writing, 549,063 billion SHIB tokens are in circulation and in the hands of the general public.
According to CoinMarketCap data, the entire market value of the circulating supply of SHIB is $6.48 billion (Dh23.80 billion), and $953 million ($3.50 billion) worth of SHIB has been traded in the last 24 hours. It is currently one of the top 15 cryptocurrencies by trading volume, as per the same source. Further, observing Coinbase, SHIB’s percentage of ‘buy’ trading activity surpassed 91 per cent, indicating that the token is growing in popularity.
9 of 10 crypto investors click ‘buy’ on Shiba
Furthermore, most analysts have a positive perspective on SHIB, with the consensus being that it could be one of the profit booking opportunities in 2022. Their rationale for this evaluation is the token’s colossal 48,000,000 per cent price growth in 2021 and its potential to skyrocket in 2022 and beyond.
Nonetheless, SHIB’s projections could be favourable due to factors other than the upward token value. Here, I will discuss some of these aspects.
SHIB is relatively new and one of the lesser-valued tokens. The low price is due to a supply glut, which has attracted investors who missed the Dogecoin hike from 0.0002 to roughly $0.19 a year ago. Despite its reputation as a token having a low market value, SHIB’s current price of $0.00001297 does not indicate that it is undervalued compared to other cryptocurrencies with fewer tokens and a higher price per token.
Still new, lesser-valued among rivals
This low price makes it a low-stake bet and transaction compared to other cryptocurrencies, as you may buy a great deal for a small amount of money. The token’s low price may also indicate that it has growth potential.
SHIB’s value also has the potential to grow owing to the combined efforts of SHIBArmy (a trendy project that pays you a huge chunk of SHIBA INU as dividend for holding), which have been boosting token burns (explained below) to make the SHIB more scarce, pushing the price upward over time.
What is crypto ‘burn’ rate?
Burning is a term used in cryptocurrency to describe taking a certain amount of tokens out of circulation to increase the value of the existing tokens already in circulation.
For instance, in the previous 96 hours, the combined efforts of multiple burn initiatives have contributed to burning over 699 million, thereby shifting them to dead wallets. So far, over 410.365 trillion SHIB has been burned, representing 41 per cent of the total SHIB supply.
What makes Shiba unique among others?
Moreover, SHIB developers do not want SHIB to be known only compared to its competitors; hence they seeks to develop its own identity. Since its inception, SHIB has launched ‘ShibaSwap’, a decentralised exchange (DEX) for exchanging Shiba Inu and other cryptocurrencies.
Additionally, it has launched the Shiba Inu Metaverse and collaborated with profit-sharing platform Block Forest to create a series of non-fungible tokens (NFT) for the FIFA World Cup 2022. Currently, SHIB developers are working on a blockchain platform called ‘Shibarium’, which will give an edge to the cryptocurrency. It is a blockchain update that could result in lower transaction fees across the Shiba ecosystem.
Leading cryptocurrency exchanges have acknowledged SHIB, bolstering investor confidence in it. For example, the token is recognised by Coinbase, the largest cryptocurrency exchange in the US. Moreover, in June 2022, Bitstamp, Europe’s largest exchange known for its somewhat conservative listing policy and stringent regulatory compliance, stated that it had listed the Shiba Inu. This makes it quite significant for the SHIBArmy, as Biststamp acknowledged SHIB as one of the greatest success stories.
Shiba outperforming other tokens by a mile
Consequently, this listing allows users to exchange the popular SHIB for US dollars and euros. Furthermore, in 2021, SHIB was the most popular cryptocurrency. According to the Coinmarketcap index of most viewed crypto coins in 2021, SHIB outperformed Bitcoin in all segments and garnered 43 million more views, making it the most-viewed cryptocurrency. This led many to claim that SHIB ‘barked’ the loudest in 2021, establishing itself as the leader among dog-themed cryptocurrencies (in reference to Dogecoin, a meme ‘dog coin’).
Finally, SHIB has shown a positive trend regarding the unique addresses holding it. Since April 2022, the total number of unique addresses holding SHIB has increased by 6.35 per cent, reaching 1.20 million users. In addition to the unique addresses holding SHIB, its median holding period has gradually increased during 2022. Coinbase reports that the median holding period for SHIB is now 119 days, compared to the average of 51 days at the beginning of the year.
While a short hold time suggests greater token movement, a long hold time indicates an accumulation tendency, confidence that SHIB has the potential to go much higher, and that a price decline will not dampen investors’ enthusiasm.
Bottom line? Outlook for Shiba looks bright
In a nutshell, with the support of its enormous community and SHIBArmy, SHIB is ascending the ladder to create its spot among the leading cryptocurrencies. Optimistic predictions are made about this unpredictable token; while one may think that it is due to it is upward price trend only, other elements such as growth potential, burning rate, token supply, strong token identity, market recognition, popularity, and loyalty are here to play a part.