Until recently, the stock market enjoyed one of the strongest rallies in history after a bear market. It took a little over a year for the S&P 500 benchmark to double in value from its overnight low. But compared to the cryptocurrency space, stock gains look like peanuts.
Since the low of the March 2020 pandemic, the global value of digital currencies has skyrocketed to almost $ 1.6 trillion, translating into a move of more than 1,100%. While Bitcoin and Ethereum, which account for about 62% of the total value of the cryptocurrency market, are responsible for a significant portion of this increase in face value, lesser-known currencies such as Shiba Inu attract large numbers of new cryptocurrency investors.
Shiba Inu’s historic profit attracted new crypto investors.
If you’re wondering “Why Shiba Inu?”, Look no further than his amazing performance last year.
On January 1, 2021, a distinctive SHIB could be purchased for the tiny $ 0.000000000073. But in less than 10 months, these same coins will reach their all-time high of $ 0.00008841. Subtracting six zeros after the decimal, SHIB achieved a record profit within the year of over 121,000,000%. In other words, by investing $ 1 at midnight on January 1, 2021, you would have become a millionaire, starting from the top of SHIB on October 27th.
Even considering that Shiba Inu sold significantly in late 2021, it is unlikely that we will ever see an annual return of approximately 46,000,000% on an encrypted asset again. Profits like life-changing are more than enough to attract new investors.
Of course, Shiba Inu had help. For example, the dynamics of the cryptocurrency market contributed to the success of this hitherto unknown badge. Although it is relatively easy to bet against stock short circuits and / or buying derivatives (such as selling options), these same tools are not necessarily available in the cryptocurrency space. With the exception of bitcoin, there are no derivative options for betting on lesser-known digital currencies. In addition, not all cryptocurrency exchanges allow open sales. All this created a natural buying bias which was fully exploited by Shiba Inu.
Not even the highest visibility hurt. Some cryptocurrency exchanges chose to introduce SHIB last year. Combined with the release of the decentralized ShibaSwap stock exchange in July, this has created a scenario where foreign exchange liquidity has improved dramatically in a very short period of time.
Can Shibarium and talk push SHIB to $ 0.0001 by the end of 2022?
However, according to the more than 1.14 million unique owners of Shiba Inu, their badge could offer a new performance in 2022 (and beyond). If a new gain of 46,000,000% is not on the agenda, almost fivefold increase in value to $ 0.0001 – SHIB coupons change hands to $ 0.00002064 from the time these lines are written – they could be available by the end of the year.
The biggest catalyst for 2022 is the expected public release of the internally developed blockchain project Tier 2, Shibarium.
Without going into technical details, Shiba Inu is a badge based on the Ethereum blockchain. Although Ethereum is a very reliable blockchain, being connected to this popular network means that you have to deal with high Ethereum transaction fees and occasional processing delays. Shibarium aims to drastically reduce transaction fees to make it more economical to use SHIB as a payment method.
So far, no release date has been set for Shibarium. However, it was reported earlier this year that Shibarium was undergoing a second round of private trials. It is still expected to be ready for its public release in mid-2022, which is fast approaching.
Shibarium is the key to the development of the Shiba Inu ecosystem. The developers of the project have previously announced that they plan to create blockchain-based games and sell digital plots, called “Shiba Lands“, In his own repetition of the post-universe. These Shiba landings, as well as characters from blockchain-based games, will be stored as non-exchangeable insignia (NFT). For an NFT market to thrive, transaction fees must be minimal, hence the importance of a successful Shibarium launch as soon as possible.
Given that Shiba Inu was one of the most sought-after cryptocurrencies in the United States in 2021, it cannot be ruled out that social media will boost SHIB by eating another zero.
The “show-me” moment of Shiba Inu can be disappointing.
However, almost all the signs and data points indicate that the chances of Shiba Inu reaching $ 0.0001, let alone ending the year there, are extremely low.
The most obvious problem with Shiba Inu is that it does not stand out from thousands of other innovative cryptocurrencies. As a distinctive ERC-20 based on the Ethereum blockchain, SHIB is, after all, nothing more than a payment currency. Its market value is surrounded by other projects that offer smart contracts and the ability to develop decentralized financial and non-financial applications. Without the game-changing utility, it’s hard to imagine Shiba Inu remaining relevant in the long run.
Shiba Inu is not even a very popular or important payment currency. Cryptwerk’s online business directory lists only 659 merchants who accept SHIB as payment, and the vast majority of these merchants are unknown. Given the high transaction costs of Shiba Inu and the increased volatility, it is unlikely that many traders will be willing to accept it as payment.
Another reason to be skeptical of Shiba Inu is the rapid decline in interest in NFTs and conversion investments. Between mid-January and mid-April, Google Trends search interest in the term “NFT”Decreased by 65%. So that it does not wait for you, look for interest in the term “interconnectionHas decreased by almost 75% since the end of October. Following the release of Shibarium, chances are that Shiba Inu games and metaverse projects will be disappointing.
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