Is Shiba Inu Crypto A Buy For 2023?

Shiba Inu has what it takes to rally again this year.

Last Updated December 29th 2022

4 Min Read

Key Points:

Shiba Inu's past price action makes it prime for FOMO in 2023.
Shiba Inu's deflationary nature could help drive up the price.
There are many developments going on in the Shiba Inu ecosystem.

Shiba Inu (SHIB) was one of the best cryptocurrency performers in the last bull cycle. It rallied by over 48,000,000%, meaning that anyone who bought just $100 worth of SHIB a year ago is now a multi-millionaire.

That said, Shiba Inu started 2022 with a lot of volatility. Like the rest of the market, it started the year bearish, but Shiba Inu's fundamentals have become much better than they were last year. Let's now look at Shiba Inu's potential and determine if the cryptocurrency is still a buy for 2023.

Investor Expectations For Shiba Inu Are High

In 2020/21, Shiba Inu did something that is pretty much unheard of in investment circles, crypto or otherwise. Shiba Inu went up by over 48,000,000% in just a year. To give you an idea of how big of a deal this is, anyone who bought just $2 worth of Shiba Inu in late 2020 was a millionaire by the end of 2021.

Such crazy rates of return have mesmerized a lot of investors, and many are still buying SHIB in hopes that it could replicate its 2021 returns. This factor could see SHIB see a surge in buying volumes in the next bull cycle. Even without considering any fundamentals, a surge in buying volumes is a factor that could see SHIB rally quite significantly in the short to medium term.

Check Out: Shiba Inu (SHIB) Price Prediction

Shiba Inu Is Deflationary

Most meme coins have tokens that run in the trillions. Some are even inflationary despite having such high amounts of coins in circulation. Shiba Inu is one of those that have tokenomics that support a potential price increase in the long run.

Shiba Inu is designed in such a way that tokens are burned over time. The token burn feature to Shiba Inu got the biggest boost in 2021 after Vitalik Buterin burned over 90% of that Shiba Inu had gifted to him at launch. This means for most of H2 of 2021, Shiba Inu was trading at about 50% of the total supply at launch.

When you factor in the fact that Shiba Inu is continually burning tokens and that adoption is on a growth path, it is not hard to see why SHIB is primed for another rally in the next bull cycle. By applying the economic concepts of demand and supply, there is no doubt that the odds are in Shiba Inu's favour.

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Shiba Inu Is Gaining In Adoption

Shiba Inu started as just any other meme coin riding on Dogecoin's wave back in 2020. However, after doing multiple millions in gains over the past year, both investors and businesses take Shiba Inu a little more seriously. This is evident in the many companies that have been adopting Shiba Inu as a means of payment.

Some of the companies that have adopted Shiba Inu as a means of payment include AMC Entertainment, Newegg Commerce, and more recently a restaurant in Paris, France, where you can now pay in SHIB tokens.

This growing adoption has a duo effect on Shiba Inu. Firstly, it will add to SHIB's utility value, which will reflect Shiba Inu's value in the long run. Secondly, it adds to Shiba Inu's credibility as an investment. These factors could draw in more investors into Shiba Inu, a factor that positively plays into its price dynamics in the next bull cycle.

Shiba Inu Has An Active Developer Team

The Shiba Inu developer team did not get carried away by the initial wave of gains in 2021. Instead, they have been hard at work to ensure that Shiba Inu gets even better and gains mainstream adoption.

The team already has several big projects coming up for Shiba Inu in 2023. One of the most anticipated ones is Shibarium. This is a Shiba Inu layer-2 solution that aims to make Shiba Inu transactions faster and cheaper. The impact will be to make Shiba Inu more practical as an everyday currency, a factor that could drive up its demand long term, and by extension, its price.

The Shiba Inu team is also looking into the Metaverse, which is one of the fastest-growing aspects of the cryptocurrency market. Shiba Inu intends to get into the Metaverse through Oshiverse. This is a Metaverse that will include a play-to-earn game that can be accessed on mobile platforms.

Considering all the optimistic projections about the Metaverse, including its potentially trillion-dollar market, it could be a catalyst for Shiba Inu's growth in 2023 and for years to come.