It seems that cryptocurrency may have recovered from a terrible bear market that lasted for a whole year. In 2023, the entire market capitalization of cryptocurrencies almost doubled, bringing much-needed optimism that had all but vanished during the crypto winter.
Many investors may be wondering if Shiba Inu (CRYPTO: SHIB) can ride this momentum and reach its previous all-time high, or maybe reach new heights, like $1, now that the party is back in full gear.
The meme coin gets a makeover.
Shiba Inu, the self-described “Dogecoin killer,” made his debut in the cryptocurrency world. It has increased by an astounding 600,00% since its inception in 2020, placing it as the 16th most valuable cryptocurrency available.
Despite the fact that Shiba Inu is still viewed as a meme coin, its developers and community are making every effort to alter this belief. Shiba Inu has picked up additional features during the past year that many of the more well-known and expensive cryptocurrencies have.
Shiba Inu token owners can now buy non-fungible tokens (NFTs), yield farms, and take part in decentralized lending and borrowing systems using their tokens. A metaverse centered around Shiba Inus is even being planned. Even though these new initiatives are creative, it’s possible that they come too little, too late.
Getting to $1
The dynamics of supply and demand are vital in the world of cryptocurrencies for establishing a token’s value. According to basic logic, there will be more demand for a cryptocurrency the more use cases it offers. Although this is a very broad generalization, it does show how other cryptocurrencies, such as Ethereum and Bitcoin, have become so valuable. In addition to having built-in systems that restrict their supply, each offers distinctive use cases that generate demand. When everything is considered, the two cryptocurrencies have the highest market value currently.
However, Shiba Inu’s enormous token supply—a critical flaw—means that even its new features won’t be able to drive enough demand to help it cross the $1 threshold. 589.32 trillion Shiba tokens were in circulation at the time of the previous count.
In order to get to a $1 token valuation, it would need to grow its market capitalization by an incredible 9,816,570%. If it succeeds in doing so, Shiba Inu’s value would surpass that of the global economy. I have a strong feeling that this won’t ever occur.
Though certain members of the crypto community may be drawn to Shiba Inu’s decentralized finance makeover and related projects inside the Shiba ecosystem, their impact hasn’t been significant enough to change the mood of the market as a whole. Shiba Inu’s main appeal is purely in its meme status and possibility for pure conjecture, unlike some of its counterparts with obvious functionality and significant use cases, and this realization is becoming more and more evident. This is demonstrated by contrasting its performance with that of the cryptocurrency market. Shiba Inu has increased by a pitiful 25% in 2023, while other cryptocurrencies have taken off.
Even though the community is clearly very devoted, Shiba Inu faces a huge and almost unfathomable economic issue due to the massive volume of tokens. If a token were to reach $1 in value, it would surpass the market capitalization of all other cryptocurrencies and rank as the world’s most valuable asset. Shiba Inu’s ascent has been remarkable, but it may take more than meme magic to reach the $1 milestone.