Contrary to most forecasts, the Shiba Inu Coin (SHIB) price broke records in 2021. Will it continue in 2022?
Predicting a Shiba Inu price run for the year 2022 is very much like fortune-telling. In the end, Shiba Inu was looking like every other meme token– contrary to all forecasts. Even though, SHIB was counted amongst the top ten cryptocurrencies. Therefore, many investors have reservations about investing in the Shiba Inu meme token in 2022. Before we predict anything about the Shiba Inu Coin forecast, let’s have a look at the course of the past year.
Shiba Inu Coin Prediction 2022: Will SHIB Keep Rising?
Of course, it can never be predicted with 100% probability whether SHIB will continue to rise in 2022. The all-time high of $0.00008845 was set by the Shiba Inu token on October 28, 2021. Since then, the meme tokens have continuously fallen by up to 62 percent. In order to assess whether Shiba Inu can continue to increase in 2022, it is important to identify the reasons for the increase in 2021.
Shiba Inu Coin: That’s Why The Meme Tokens Exploded
First of all, you have to realize that meme tokens have no essential purpose in the first place. Dogecoin also only emerged as a parody of bitcoin as a result of a flood of new cryptocurrencies. Based on DOGE, a meme coin with a dog logo was also created with Shiba Inu. The difference: Shiba Inu does not have its own blockchain, but is an ERC20 token on the Ethereum blockchain.
The biggest reason for the increase in Shiba Inu is undoubtedly the community. Driven by the Wall Street bets, an incredibly strong community has built up within a very short time, which has set itself the goal of bringing SHIB to the top. After Dogecoin took off in January – also driven by Elon Musk and later also by Wall Street bets – Shiba Inu was now the next cryptocurrency with a dog as a logo.
The target of the most optimistic investors is the dollar mark – but first, the cent mark has to be broken. At current circulation levels, even at one cent, Shiba Inu would be worth roughly six times Bitcoin.
What is crucial for SHIB in 2022?
The developers themselves undoubtedly had another positive influence on the Shiba Inu Coin course in 2021. They used the hype to make people clearly understand that Shiba Inu is much more than a simple meme currency.
Shiba Inu NFT, a decentralized exchange called Shibaswap, an NFT blockchain game and even their own Layer 2 solution to reduce transaction costs. The list is long. However, if the developers can actually carry out all these steps, this is not necessarily a recipe for success. All of this already exists – some projects are already established.
We see potential in one of the planned projects in particular. In our view, the NFT game is critical to Shiba Inu seeing another strong rally. Due to the strong community alone, we can basically assume that the NFT game will be a success from the start. However, we can hardly predict in advance what will happen in the long term.
SHIB Course Explosion by Burning?
The Shiba Inu Coin has a circulation of 549 trillion – Dogecoin is just 134 billion (current). Therefore, the number of coins in circulation should be drastically reduced. Burning events are held again and again – since October 20, for example, Bigger Entertainment has burned around 880 million SHIB tokens. What sounds like a lot, however, accounts for just 0.00016 percent of the volume in circulation.
How does this affect the course? Probably not at all. Burning also has no direct impact on market capitalization. If you have 100 copies of item X with a price of 2 euros each, burn half and now get 4 euros per copy, the total value remains at 200 euros.
Shiba Inu course forecast – 2022 Crucial year for SHIB
Meme currencies had their hype in 2021. This will not completely abate in 2022 either. Nevertheless, in our opinion, it has recently become noticeable that meme coins such as Dogecoin or Shiba Inu (at least still) lack the strength to keep the price at a high level, at least in the long term. While Bitcoin is currently just over 30 percent below the all-time high but also held out longer at around 55,000 US dollars, this does not seem to be possible in relation to Shiba Inu.
Will Shiba Inu ever set a new all-time high again? In our view, this is very likely. However, a new all-time high (measured in terms of market capitalization) will not really reach new heights. In the longer term, if the NFT game really becomes a success, the price could linger at higher levels.