In 2021, Shiba Inu was one of the most popular cryptocurrencies, with more than 43 million views. It’s not easy to defeat Bitcoin, but SHIB has the drive to accomplish the impossible. Every dog has its day, and it appears that the dog-themed meme token has been having a blast for the past year.
Shiba Inu is a penny token that was developed in August 2020 to be the Dogecoin Killer, named after the Japanese dog breed. It has increased by 20,904,459.89% in the last year on paper.
However, Shib prices have recently dropped from an all-time high of $0.00008841 in October to 0.00002596 on January 21st, a drop of more than 65 percent. Shiba is an altcoin, which means that its success depends on a strong public-demand. Fortunately for the SHIB ecosystem, it is supported by a large community. It is critical for Shiba Inu to get supported if it has to rise again and reach an all-time high.
Shib founder Ryoshi has stated that he is concerned that if Shiba Inu is taken from the Ethereum blockchain, people will cease trading it. However, with each transaction on this network costing over $9, continuing to trade on the ethereum blockchain makes little sense. SHIB also faces intense competition from new ventures such as EverGrow, which has good fundamentals and a strong team, as well as a significantly lower valuation of $500 million compared to SHIB. So, Shiba has a lot of advantages, but it’s going to be a difficult year since valuations are very high, and the development of an independent blockchain is a challenge that needs to be carefully addressed.
Will Shiba Inu Reach One Cent?
The financial reality of a Shiba Inu reaching one cent is irrational. Because the market cap at $0.01 is nearly $5.89 trillion, which is 10 times that of Ethereum, the blockchain on which it is based. The market capitalization will be three times that of Apple, five times that of Tesla, and ten times of Bitcoin.
Cryptocurrencies such as Bitcoin and Dogecoin have their own blockchain and are stand-alone currencies. They also feature a mining mechanism, supported by hundreds of mining computers. SHIB, on the other hand, is a coin based on ERC 20 tokens, comparable to Binance and Tether. As a result, SHIB is not providing anything new to investors to drive its market capitalization to such high heights.
If Shiba Inu reaches a 1 cent valuation with a market price of $5.89 trillion, it will be worth more than the $4 trillion in annual tax revenue produced by the US government. Because SHIB is built on Ethereum ERC20, it is illogical for Shiba Inu’s market cap to exceed that of Ether.
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