Despite having a low current value, Shiba Inu Coin has gained notoriety for a variety of reasons. However, the coin is dominating a sizable portion of the crypto market and is proving to be a great option for investors. Shiba Inu Coin is an ERC-20 token on the Ethereum blockchain which seeks to establish itself as a decentralized meme token based on the famous Shiba Inu Dog Breed.
Since the launch of the Shiba Inu token, the price has fluctuated noticeably, leading many investors and fans to worry if it would reach $1. Well, we will be elaborating on what Shiba Inu is all about, the problems it is facing, factors that affect the price of Shiba, and when it will reach $1.
What Is Shiba Inu Coin?
Before diving into knowing whether Shiba Inu will reach $1 or not, let’s first know what Shiba Inu itself is all about.
Shiba Inu is an ERC-20 decentralized token that was built on the Ethereum blockchain network as a spin-off of the popular meme coin, dogecoin. Based on the association with memes, the worth of Shiba Inu is derived. The Japanese Shiba Inu Dog Breed in this case rather than utility. Although, the token was created to solve real-life challenges. In 2020 August, Shiba Inu began as a parody just like another meme coin and it was created by an anonymous group of individuals.
The Problems Faced By Shiba Inu
- Policies or Regulations: The cryptocurrency market is faced with different regulatory factors from several parts of the world. marShiba Inu’s growth and adoption can easily be affected by favorable or negative policies within its ecosystem.
- Market Conditions: In a bear market case, the tendency of Shiba to reach $1 is low. Market conditions highly have an effect on the cryptocurrency market in general.
- Market Volatility: Just like other cryptocurrencies, Shiba Inu is also influenced by the volatility of the market which usually leads to losses of investments made by investors and makes the price of Shiba to be unpredictable.
- Real-life Utility: This project seeks to assist charitable organizations. Its real-life utility is beyond meme which could hinder its progress prospects.
Factors That Affects The Price Of Shiba Inu
Liquidity And Volume: To see a significant uptrend movement in price, liquidity, and high trading volume are crucial for cryptocurrency to attract investors. For Shiba to have active traders in the market, it has to have high trading volumes which can make it easier for Shib to reach a higher price level.
- Market Sentiment: Technological advancements, endorsements of influential individuals like Elon Musk, positive news, etc can lead to an increase in the prices of Shib while negative news highly impacts it as it can lead to price fluctuations of Shib causing market instability. Speculative hypes and market sentiment are major factors that affected the prices of cryptocurrencies.
- Tokenomics: The tokenomics of a coin affect it. The tokenomiEcs is made up of different components such as; the supply and distribution of Shib, the use cases, etc. The price fluctuation of Shib could be limited potentially compared to other cryptocurrencies with lower supply while Shib has a large supply of tokens.
- Social Media Support: The confidence of investors can be increased and also increase the demand for Shib due to dedicated support on social media. Shiba Inu project has an active and supportive community in social media.
Shiba Inu Price Prediction For 2023
Based on the predictions made by crypto professionals, the average price expectation of Shiba Inu in 2023 would be trading around the range of $0.00030921. This implies that, around this cost, the maximum cost will take place there. Although, the highest and low expected prices of Shiba Inu are around $0.00035649 and $0.00029857, respectively.
Will Shiba Inu Coin Reach $1?: A Brief Explanation
It is unlikely and not impossible that the price of Shiba Inu will reach $1. If sufficient Shib Inu tokens are burnt, it may occur. The total supply of Shib tokens can be decreased by burning them. Due to the founder of Ethereum; Vitalik Buterin more than 380 trillion worth of Shib token has been burned.
The demand for a token will increase if the supply reduces as more are being burnt. For the price of Shiba to get to $1, then they would necessitate the burning of a sizable portion of Shiba Inu.
For Shiba Inu Coin to reach $1, it depends on various factors such as; tokenomics, market sentiments, market liquidity, and trading volume, market sentiments, etc. if those factors are not favorable to the project, then the price of Shiba reaching $1 would be unpredictable.
Well, there are other fundamental factors that affect the price of Shiba such as burning and deflationary mechanisms. If Shiba is burnt for a few years and the deflationary mechanism it might reach $1. Because of the strong and active community that it has, it was among the most outstanding cryptocurrencies to be bought for less than a dollar.
The market volatilities affecting the prices of cryptocurrencies are the major key factor to consider when investing in cryptocurrency. Therefore, always conduct research before making a cryptocurrency investment.