TL;DR Breakdown
- Shiba Inu cannot hit $0.01 in 2022.
- Analyst gives three reasons why.
- Says after meme coin 46,000% rise in 2021, it can only go down.
Despite being a new year with high optimism among Shiba Inu Army, analysts have predicted that the meme coin can’t hit $0.01 this year.
This is despite the huge success SHIBA saw in 2021, spiking by over 46,500,000% in the year. The analyst believes it cannot repeat a similar feat this year despite this.
Explaining why their forecast for the coin in 2022 is bearish, the analyst explains firstly that the cryptocurrency space has more than 16,200 listed tokens, per CoinMarketCap.com. To stand out, projects need to offer competitive advantages and differentiation. Investors aren’t going to get any competitive advantages or differentiation with Shiba Inu. It’s nothing more than an ERC-20 token built on the Ethereum blockchain that, for the time being, suffers from the same high transaction costs and lag in processing times that accompany the Ethereum network, the analyst said.
Other reasons Shiba Inu won’t hit $0.01
Secondly, they explain that SHIBA has virtually no utility outside of a cryptocurrency exchange. Online business directory Cryptwerk lists just 394 merchants that accept SHIB as a form of payment as of Dec. 31. What’s more, 44 of these “merchants” are crypto exchanges. This means only 350 businesses worldwide actually accept SHIB as payment.
Listing the third reason, analysts explain that history is not on Shiba Inu’s side. They explain that the coin has delivered a once in lifetime gains returning over 46,500,000% in a short time.
Referencing history, after such returns, a massive pullback awaits, as seen with payment coin Nano which surged 461,000% in under ten months, then shed 99% of its value over the subsequent 26 months. Similarly, privacy coin Verge gained almost 1,200,000% in about a year, then lost 99.6% of its value.
