Why Shiba Inu (SHIB) Is So Cheap?

Last Updated January 28th 2022

8 Min Read

Why has Shiba Inu this cheap? Are Shiba Inu prices expected to rise in the future, and is it worth buying?

Well, Shiba Inu is cheap today because of a myriad of reasons, chief among them being its oversized maximum token supply, apparent lack of a real or perceived intrinsic value, and probably the fact that it is relatively new - barely 17 months old.

But we need to understand that low prices do not always mean that a cryptocurrency is lowly valued. Take Shiba Inu as an example. For the past week, its prices have been ranging between $0.000020 and $0.000022. But it still has a colossal market capitalization of $11 Billion.

Today, it is ranked in the top 20 of the largest cryptocurrencies by market cap, which is way ahead of some highly-priced coins like Maker and Compound, which have lower market caps.

But can we expect Shiba Inu Prices to rise again? And is now the best time to buy Shiba Inu tokens?

We will be answering these two questions in a moment hereinbelow and even help you decide if Shiba Inu is worth buying. But we first need to build context by looking at Shiba Inu’s backstory and going deeper on factors that kept its prices low even after an incredible price rally.

Shiba Inu Price History

Shiba Inu launched on 1st August 2020, with a listing price of $0.000000000972. It received a cold reception from the market, and its price started tanking right away. 96 hours after its launch, for instance, the Shiba Inu Token prices had dipped to $0.000000000147.

It attempted a meek rally in early September 2020 that saw its prices rally to around $0.000000000543, but it quickly flopped and resumed the downtrend. It hit its lowest point on 28th November 2020 when it ended the day trading at $0.000000000056. It would continue recording these depressing prices throughout 2020 and through to the first week of May 2021.

The low prices were also characterized by equally low trading volumes. On 20th January 2021, for instance, only $7.78 worth of Shiba Inu coins exchanged hands - according to Coingecko.

In early February, however, Dogecoin - the meme currency from whence the Shiba Inu token is modelled off - started gathering momentum. Shiba Inu, the self-proclaimed Dogecoin killer - followed suit and started attracting more buyers who helped push up its prices. It continued riding on Dogecoin’s popularity the social media hype it was getting, but its biggest break came about on 7th May when Elon Musk shared his interest in the coin through a tweet.

Three days later (on 10th May), Shiba Inu set its then ATH at $0.0000388 - on a day when more than $21.85 Billion worth of SHIB tokens changed hands. The token price had appreciated by close to 3000% in 96 hours (between 7th and 10th May) and 3.9 Million percent overall.

Over the next months, the SHIB price fluctuated and managed to jump as high as $0.00008845 on October 28th and secure this as its current all-time high.

You might therefore be asking, why are Shiba Inu token prices so low even after such an astonishing price jump? We look at some of the different causes of low prices below.

Why Is Shiba Inu So Cheap?

There currently are several factors that can be attributed to Shiba Inu’s incredibly low prices, but the most impactful is the force of demand and supply. In any market, a scarce and highly valuable product will almost always command high prices.

Look, for example, at the case of Bitcoin. Its maximum supply is capped at 21 million Bitcoin tokens, and it has established value through mainstream adoption of both the coin and its blockchain technology. This has, in turn, created massive demand that pushes its prices as high as $65,000 per Bitcoin.

The same cannot be said of Shiba Inu that has a maximum supply of 1 Quadrillion SHIB tokens. Such a large volume of coins create a fountain for an unlimited supply of tokens, which, when matched with low demand for the SHIB tokens, a thrust that keeps misfiring every time the coin tries to escape the low prices. And it misfires because the interminable supply of coins fills any order before high demand can push its prices up.

You also have to consider the fact that, having been around for less than 17 months, Shiba Inu tokens are relatively new. They are untested, and investors are known to be rather choosy when it comes to committing significant resources towards new altcoins, especially if they derive much of this value from social media hype.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Should I Buy Shiba Inu While It Is Still Cheap?

The decision to buy Shiba Inu at the current low prices should be informed by more than your risk tolerance, social media hype, FOMO, or cash at hand. It should be informed by thorough research and expert analysis of the price direction that the SHIB tokens are expected to assume moving forward.

Currently, the crypto market is bullish on Shiba Inu as experts and investors expect the token prices to rise again and resume the uptrend moving forward. There also is a lot of social media hype surrounding the coin that most of its proponents expects will draw in celebrity endorsements which helps flip the coin prices.

So, is it a good buy?

Yes, but there is a caveat. Given that Shiba Inu is not a good long-term investment, it hasn’t received any attention from serious crypto investors or institutions, and its price is currently being driven by its close association to the Elon Musk-backed Dogecoin and ‘price pump’ campaigns on social media.

The moment this hype dies or is directed towards another presumably more profitable altcoin, experts foresee an unprecedented plummeting of the already low SHIB token prices.

Is Shiba Inu (SHIB) Worth Buying?

Shiba Inu’s potential for growth, driven by a sustained media buzz around the token, makes it worth buying today. And though there are talks of reducing its supply by burning most of the Shiba Inu tokens as well as that of value creation that started with the launch of Shibaswap, experts advise that you only consider it as a short term investment.

You should also avoid dedicating much of your capital towards the coin because there is no telling when the hype fuelling its prices may die, turning its past gains to ash.

They also recommend that you avoid FOMO when dealing with cryptocurrencies and that you consider investing in SHIB CFDs that let you go long or short on the token price and let you benefit from any price direction.

Will Shiba Inu (SHIB) Bounce Back?

Yes, most indicators today point to the possibility of Shiba Inu prices rising again and sustaining an uptrend for the next few years. Given the publicity surrounding the Dogecoin Killer at the moment, crypto analysts are confident that the altcoin will be worth more at the end of the year and in the next five years than it is today.

Cryptocurrency price prediction websites are also very bullish on Shiba Inu token prices. For instance, Wallet Investor - a leading price prediction website that uses technical analysis to forecast crypto prices - indicates that SHIB token may be selling for $0.000071 and $0.00026 by this time in 2023 and 2027, respectively.

Technical analysis by Trading Beasts - yet another price prediction website - suggest that Shiba Inu may end 2022 trading at highs of $0.000039 and probably rise this further to $0.000044 by the end of 2025.

Check Out: Will Shiba Inu (SHIB) Reach $1?

Conclusion

Shiba Inu is cheap because it is relatively new. It is also cheap because of its massive supply of 1 Quadrillion SHIB tokens and particularly low demand. It is cheap because it has no real value save for the hype it is currently receiving in the media and also because there is not enough data - fundamental or technical - to help serious investors map out a possible price action for the coin.

Moving forward, crypto experts are confident that Shiba Inu prices will rise again and continue uptrending as long as the media buzz around the coin lives on. But since the token’s only claim to value is its media hype, you are cautioned against treating it as a long-term investment. Where possible, consider investing in Shiba Inu CFDs that let you go long or short on the token, ensuring that you make money from both its gains and losses.