Shiba Inu’s emergence as one of the top cryptos has come a long way.
From just another meme coin to entering the top 10 cryptocurrencies list, dethroning TRON (TRX) in terms of market capitalization, SHIBA has gradually picked up space and enabled investors to trust the coin because of its utility and value.
However, in recent developments, it has been reported that many investors sold their Shiba Inu investments and bought other altcoins. So, what does this indicate?
We will look at factors associated with Shiba Inu’s future and its price history to find out what are the factors behind its surge and drop. Also, should investors sell Shiba Inu?
Shiba Inu’s 2022 Drop
Shiba Inu is the second largest meme coin after Doge. However, that fact itself couldn’t help the investors much in 2022.
The cryptocurrency plummeted in value in 2022. The coin dropped by almost 80% from its all-time high in 2021. Shiba Inu has always been quite reactive to bearish markets. Shiba Inu’s price failed to reach the $0.0000130 resistance in the last three months.
The Crypto market’s bearish trends coupled with investors’ sentiments towards meme coins led to a debacle for the meme coin.
Why Shiba Inu is Preferred By Investors?
While the recent price point for Shiba Inu doesn’t seem favourable, several investors still tend to prefer SHIBA for a few advantages.
Extensive Trading Volume:
A cryptocurrency’s trading value plays a huge role in determining its future value. When it comes to Shiba Inu, the cryptocurrency managed to maintain a decent and stable trading volume of $1,604,789 on its debut day.
Shibarium Coming Up:
Shibarium is a blockchain/layer-2 solution network. The Shibarium ecosystem will be able to provide Shiba with its own blockchain structure, enabling developers to build on it and participate in the validation process.
Once launched this year, the SHIB token and most of the Shiba-Inu-related NFTs will move to Shibarium.
Based on Ethereum Blockchain:
Unlike other meme coins, Shiba Inu is an ERC-20 token based on the Ethereum mainnet. This provides investors with a sense of confidence before investing in cryptocurrency.
One of the Cheapest Cryptocurrencies:
Shiba Inu is one of the cheapest cryptocurrencies. This makes it one of the most popular cryptocurrencies amongst newer investors as well, who want to test the waters. Moreover, this also adds to its overall popularity.
Why Should You Sell Shiba Inu?
While Shiba Inu has come a long way in order to establish itself as one of the top contenders when it comes to meme coins, there are certain areas which might make investors consider selling the cryptocurrency.
Fails to Stand Out:
While Shiba Inu has been able to gather popularity when it comes to the crypto world, it doesn’t have any specific sense of utility. Every cryptocurrency that launches has a purpose. That can either be to solve an existing problem or to provide new functionality.
Although, when it comes to Shiba Inu, the only purpose behind it is “killing DOGE”. It fails to stand out in terms of the overall characteristics of its competitors.
Limited Gains Potential:
For a cryptocurrency that surged last year, the potential to gain earns out of it does seem unlimited. However, that isn’t the case.
Yes, cryptocurrency has been diversifying. Although, the basic logic behind this is around Shiba’s circulating tokens. The current circulating supply for Shiba Inu is at 549 trillion.
If, as per investors’ wishes, the cryptocurrency is able to reach the $1 mark, the market cap for the coin would reach $540 trillion, which seems impossible as the current market cap for cryptocurrencies currently stands around $1 trillion.
While gains cannot be sidelined, the chances do seem a little limited.
Increasing Competition:
When Shiba Inu started, its only competition was DOGE. However, as the cryptocurrency diversifies and steps into the metaverse, paly to ear games, it is facing stiff competition.
While the bigger players are working towards making the overall customer experience better, by increasing transaction speeds and developing road maps, Shiba is still exploring and stepping into different spaces.
Selling Shiba Inu: Not Everything’s Bad Though
Shiba Inu rose to popularity backed by a strong community, and many of them still support the cryptocurrency somewhat.
Moreover, on the utility front, the crypto is diversifying extensively. With the launch of the SHIB Visa card, the Shibarium Layer2 things look optimistic. Moreover, Amsterdam-based payments gateway Nowpayments, even allows employers to pay salaries in SHIB if any of the employees hold the coin.
Shiba Inu still has a long way to go. However, when it comes to selling Shiba Inu, investors should conduct their due diligence and research about the cryptocurrency before making a decision.
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