Why We Think Shiba Inu Could Be The Next Big Thing

Deflationary token dynamics and growing adoption to propel it to greater heights

Last Updated January 27th 2022
5 Min Read

Shiba Inu (SHIB) was one of the best performers in the May 2021 crypto bull run. The meme coin came into existence in August 2020, and by April 2021, it was up by 500,000%.

However, it went into a sharp correction after hitting peak prices in April like the rest of the market. While the broader market’s correction had a lot to do with Elon Musk’s comments on Bitcoin, and China’s crackdown on Bitcoin mining, Shiba Inu’s problems were a little more complex than that.

This crypto faced the risk of a huge dump after Vitalik Buterin donated $1 billion worth of SHIB tokens to India. The fear was that the recipients would dump them, hence tanking the price. Since fear is a key component of the crypto market, it accelerated the selloff.

Buterin then went ahead and burned the rest of the tokens that had been donated to him. Being one of the most influential people in crypto, his move to distance himself from such a young project hit it even harder.

However, Shiba Inu seems to have overcome all these issues and is gaining upside momentum recently. Shiba Inu rallied by over 1000% in October 2021.

But, after such a huge rally, it’s only natural to think that Shiba Inu is getting into overbought territory. The good news is that there is so much going on for this crypto that it could still be the next big thing in crypto.

Why Shiba Inu Could Be The Next Big Thing?

1. Shiba Inu is giving Dogecoin like vibes from late 2020

The whole meme coin ecosystem that has fostered the success of cryptos like Shiba Inu owes a lot to Dogecoin.

While Elon Musk was the primary reason why it pumped in most of 2020, the biggest rally of all can be linked to Robinhood. When the meme coin and stock hype gained momentum earlier last year, most traders turned to Robinhood to buy them. The ease of use of this exchange led to a surge in demand to unprecedented levels.

When Shiba Inu was rallying, investors started petitioning Robinhood to list it. The hunger that investors have for such a listing is already evident in social media circles.

It’s an indicator that if Robinhood honours the petition and lists Shiba Inu, the flood of new investments could push this crypto to the stratosphere.

2. Shiba Inu core metrics are getting better

Shiba Inu was nothing more than a meme coin trying to ride on Dogecoin’s fast-rising price two years ago.

However, this is no longer the case. Shiba Inu has grown so much that it is now crypto with some real-world use cases.

For starters, the project now has a DEX that not only helps create liquidity for Shiba Inu but has also opened up the trading of SHIB for other tokens.

At the same time, due to the media visibility that this project has received since it launched, its adoption is on the rise. A while back, Shiba Inu was included among the cryptos that can be used for payments on major eCommerce sites through shopping.io.

A few days ago, the project was adopted for payments by a restaurant in Paris, France. This has been a confidence boost to those holding the token, that it is a little more than a speculative investment.

As more organizations adopt Shiba Inu for payments, its demand will also increase. It’s a factor that could keep this token gaining in value going into the future.

Read Also: Why Do Shiba Inu Coins Have Value?

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

3. Shiba Inu has awesome tokenomics for a meme coin

Most meme coins have very weak tokenomics. For instance, Dogecoin, the biggest meme coin to date is inflationary, and 5 billion tokens enter circulation every year.

Shiba Inu is different, and as far as tokenomics go, it has what it takes to grow in value long term.

One of the pointers to how good its tokenomics are is that more than 50% of the total supply is already out of circulation.

That’s because the project had allocated 50% of the total supply to Vitalik Buterin, and he burned most of them to a dead wallet. At the same time, the project has been burning tokens through transaction fees.

Due to Buterin’s burn, and the transaction-based token burns, the total number of tokens has dropped from 1 quadrillion to about 350 trillion tokens.

Given that the token numbers will only shrink over time, the price, too, is likely to only go up over time. There are many examples of deflationary cryptocurrencies that have performed extremely well so far.

For instance, the Binance coin rose from pennies to over $600 largely because it is deflationary. Ethereum too has been on a consistent uptrend since August when it introduced a deflationary feature.

4. Its price is attractive to small investors

Most major cryptocurrencies are now out of reach for small investors, at least in terms of buying whole coins.

For instance, $100 today is technically not investable in Bitcoin or Ethereum today. The network fees alone would make the whole endeavour pointless.

This has left a lot of room for small altcoins to grow. For Shiba Inu already has a strong community and good tokenomics, this is a factor that could propel it to greater heights in the future.

With all these factors in its favour, Shiba Inu is a crypto to keep an eye on going into the future.

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

Read More:

What Is Shiba Inu And How Does It Work?

Why Shiba Inu Is A Better Buy Than Dogecoin

How To Make (Or Lose) Money With Shiba Inu

What Might Happen If You Invest $100 In Shiba Inu Today?

What Will Shiba Inu Be Worth in 2025?