Introduction
Although Bitcoin and Ethereum are kings and queens of the cryptocurrency world, they could never do what Shiba Inu did in 10 months. Shiba Inu rose by 46,000,000%. Keeping this information in perspective, if you invested $1 when Shiba Inu, you would have made $1.2 million in less than ten months. Yes, you read it right. Therefore, SHIB is the undisputed hero of the crypto world.
The sudden rise in SHIB’s price made many millionaires and laid the foundation for a strong Shiba Inu community. However, just like its unprecedented rise, it has also experienced a turnaround in fortunes. Unfortunately for the SHIB Army, the price of the Shiba Inu coin is dipping and gaining zeroes after the decimal at an unprecedented rate. At the time of writing, SHIB’s price stands at a miserable $0.000008102, and many believe its downfall will continue until it reaches 0. So, let’s analyze if this belief is true or just naysayers mouthing their opinions.
3 Reasons Why Shiba Inu is Going Towards Zero
Shiba Inu’s price is decreasing because investors are no longer happy with its fundamentals. Let’s take a look at the reasons:
#1. No Competitive Edge Over Other Cryptocurrencies
Shiba Inu’s main problem is its few use cases for payments. While merchants accept cryptos like Bitcoin, Ethereum, and even DOGE, SHIB has only 659 merchants who will transact with the token. The number 659 is further diluted because almost 20% of SHIB merchants are offering crypto services. Suppose we do the math (659 – 20% of 659 = 527). Putting this number into perspective, there are currently 500 million entrepreneurs worldwide, and Shiba Inu is only accepted by 527 entrepreneurs of conventional goods/services (who don’t deal in crypto services like digital wallet services and brokerage).
#2. No Impact of Coin Burn on SHIB value
Coin burn generally helps cryptocurrencies raise their value. However, even when Vitalik Buterin, the founder of Ethereum, burned nearly half of Shina Inu’s supply, it did not have any lasting impact on SHIB’s value. Currently, trillions of SHIB are circulating in the market; therefore, we can convincingly say that coin burn has been a failure so far.
#3. Past Events do not Favor Shiba Inu
One of SHIB’s competitors was a privacy coin called Verge. It allowed senders and receivers to remain hidden while transacting. As a result, it motivated many people to buy it initially, which raised its price by a whopping 1,200,000%. But unfortunately, the token lost nearly all its value (99.6%, to be precise, in a few days). Similarly, SHIB has lost 90% of its value in almost ten months. Therefore, historical precedents of coins rising sharply and falling even more drastically have worried even the most loyal investors.
Conclusion
Considering all the arguments in this article, you can imagine Shiba Inu hitting 0 soon. However, SHIB has something other coins don’t have – a faithful fan base of more than 1.17 SHIB holders. And this is the reason why it has a good chance of making a recovery when the cryptocurrency market rises again. Apart from the investor base, SHIB has Shibaverse and NFT-based gaming on the horizon. So, it is developing strong use cases, which might help it emerge as a winner in the long run. Even though many merchants do not accept it, the interest in SHIB is still high. However, investors like Ethereum whales are avoiding the token due to the dip in the overall crypto market. Once the situation becomes better and significant coins such as Bitcoin and Ethereum make a comeback, Shiba Inu will also profit from the positive sentiment in the crypto market. So, for SHIB investors, it is an excellent time to keep the faith and hopes SHIB replicates its stratospheric performance in 2021.
Also Read:
Shiba Inu Price Forecast 2022-2030
Can Overburn of Shiba Inu (SHIB) Destroy the Meme Coin?