Shiba Inu’s volatility, its reliance on hype for demand as well as current lack of significant functionality make price predictions of the coin rather challenging.
Shiba Inu came to live in August 2020 as an Ethereum-based altcoin. Its name and main feature stems from the Japanese hunting dog Shiba Inu.
Similar to Dogecoin, Shiba Inu is considered a meme coin and ranks as one of the top meme cryptocurrencies.
The coin gained momentum shortly after Elon Musk’s tweet of his Shiba Inu breed puppy on October 3rd in 2021. Nonetheless, the Shiba Inu has seen a continuous downward trend since.
Read more to find out about current price predictions for Shiba Inu for 2022.
Insights into Shiba Inu
In 2020, Shiba Inu’s founding group Ryoshi created the coin with a specific purpose in mind. They were looking to understand “What would happen if a cryptocurrency project was 100% run by its community?”.
As is the case with many blockchain supporters, the group believed in the concept of collective decentralization to support and build a strong and powerful vision.
The Ryoshi Group decided to launch Shiba Inu on Ethereum rather than on a native blockchain.
Thus, also allowing it to benefit from Ethereum’s developments. According to the coins Whitepaper, or Woof Paper in this case, the choice for Ethereum was made based on the reputation of the chain as being “secure and well-established”.
While many other cryptocurrencies are utility token in their nature, most altcoins, for example Dogecoin, do not have any functionality that would provide value to holders.
Nonetheless, Shiba Inu has built an ecosystem to offer utility opportunities such as liquidity providing, staking and exchanging of tokens on its native exchange ShibaSwap to investors.
Price History
Shiba Inu experienced its first notable price increase in May 2021. Within a single month the coin’s price increased by approximately 300%.
After dropping back to a more stable value in the following months, Elon Musk’s tweet in October 2021 caused a substantial price change.
Though his Tweet managed to increase the price of Shiba Inu to an all-time high of $0.00008845 with a market cap of over $40 billion, Musk himself noted to not have owned any Shiba Inu at that time.
As Shiba Inu‘s supply circulation is considered rather large, the price is seen to be very low in comparison to its rival Dogecoin.
Though, in 2021 Shiba Inu’s market capitalization overtook that of Dogecoin.
Since its all-time high in October 2021, the coin has experienced an overall drop in value.
Even though the coins price momentarily increased when Shiba Inu’s joined Robinhood in April of 2022, transaction volumes and the price itself have overall been declining.
At the moment, Shiba Inu trades close to previous price levels prior to May 2021.
Voices and Opinions
Opinions and price predictions surrounding Shiba Inu are mixed. Wallet Investors uses artificial intelligence (AI) tools to forecast prices.
Their forecasts initially showed a positive outlook for the coin with a target value of $0.000014 by September 2023. Though, the coins volatility proved them wrong as Shiba Inu already surpassed their predictions.
While some voices advocate for the possibility of Shiba Inu to move beyond $0.007 or even $0.01, such hopes are rather slim due to the coins large market cap.
Though, the overall sentiment among experts seems to support a long term increase in the coins price.
In contrast, CEO of Block Journal, David Hsiao attributed the success of Shiba Inu merely on hype. Thus, extenuating the risk of the asset in the long run.
Coupled with the current state of the cryptocurrency market, Shiba Inu could drop further.
Nonetheless, Shiba Inu is working hard on increasing functionality of the coin to provide additional value to investors and drive the price up.
For example, Shiba Inu’s planned entry into the metaverse with Shibverse could cause a noticeable upward trend in the tokens value.
Additionally, Shiba Inu was enabled to be used as a source of payment in-store and online through BitPay at the end of 2021, further extending the coins use cases.
Price Prediction
At time of writing the price of Shiba Inu is at $0.000008587 with a market cap of $4,714,900,902, up 9.28%, and a trading volume of $488,931,531, down 0.95%.
Shiba Inu’s volatility, its reliance on hype for demand as well as current lack of significant functionality make price predictions of the coin rather challenging.
Nonetheless, forecasts by B2C (April 2022), CryptoNewsZ (June 2022) and Benzinga (June 2022) indicate possibilities for long-term price increases.
Shiba Inu could be trading around $0.0001 by 2025, especially considering the current developments of the ecosystem.
In the short run, the price of the coin is dependent on investors’ sentiment and the evolvement of the market. Thus, prediction indicate a price ranging between a low of $0.000003321 or high of $0.00005585 in 2022.
Overall, while Shiba Inu’s volatility and reliance on hype do make it a risky asset, it certainly offers an interesting ecosystem and community with a promising outlook on development.
Additionally, Shiba Inu’s performance can be considered better in comparison to other altcoins. Its focus on providing and building further utility serves as hope for investors in the coin’s future.
If you want to find out more about the ecosystem, make sure to read through the whitepaper and do your research.
