Shiba Inu performed very well from its launch in 2021, and investors were quick to jump on its bandwagon. Many anticipated that it would maintain that success the next year.
However, as a result of the crypto market's general decline in 2022. Nearly every cryptocurrency experienced a value loss of more than 50% last year, and the price of SHIB fell by about 80%.
But with the crypto market starting 2023 on a positive note, meme coins including Shiba Inu have recently attracted some fresh interest. The memecoin has since risen by 26.8% since 1 January and now trades at the $0.00001 zone.
The question this article seeks to answer at this point, is: Does Shiba Inu have a fair chance at $0.01 in 2023?
The memecoin's investors and traders would all like an answer, and here is what we think.
First of all, Shiba Inu has performed excellently in terms of fundamentals.
With the promise of Ethereum bridging and other exciting possibilities, Shibarium, Shiba Inu's upcoming layer-2 blockchain is now more poised than ever, to revolutionize the blockchain landscape.
With more than 4.6 million total transactions, Shibarium has reached a key milestone, showing enormous growth from only a few thousand transactions a few weeks ago.
Sasnikova of the Shiba Inu army also recently revealed that the bridge had been enabled and was partially functioning in a tweet over the weekend, marking a big accomplishment for the Layer 2 network.
Shiba Inu also saw excellent financing rates on the majority of exchanges, indicating a generally favourable attitude toward the coin. This pattern suggests that more traders are forecasting an increase in the token's price as opposed to a decline.
While all of these indicate strong interest and healthy developments in Shiba Inu, the question still stands: Can Shiba Inu take advantage of these factors and approach $0.01 in 2023?
We'll answer in due time. For now, remember that
According to CoinMarketCap, Shiba Inu may have recovered slightly this year. However, the memecoin is still a whopping 88.62% away from its all-time high.
If you recall, Shiba Inu hit an all-time high of $0.00008845 sometime in October 2021. and since then, the memecoin has plummeted rather badly to the $0.00001 zone where it now sits.
Here is a chart to illustrate the point.
To answer the question: Even if Shiba Inu were to rally straight up to its all-time high of $0.00008, it still has to rise by a whopping 11,500% to even hit $0.001.
Is this impossible?
Maybe.
It might be helpful to remember that Shiba Inu rode the 2021 memecoin craze, and rose by a ridiculous 50,000,000% in less than a year.
However, more than just history and fundamentals are required to reach $0.01. The enormous supply of SHIB is one of the main challenges for the memecoin.
Shiba Inu has a total supply of 1 quadrillion tokens, of which around 550 trillion are currently in circulation.
According to a calculation, $SHIB would have a market valuation of 5.5 trillion dollars if it were to hit $0.01.
Given that the total world GDP is slightly over $100 trillion, it is technically impossible for such a rise in SHIB to occur. This is without mentioning that the total market cap of cryptocurrencies in Q1 2022 was just about this figure.
The rate at which Shiba Inu is being burned, however, may create some fair weather for the memecoin.
From its creation until date, more than 400 trillion SHIB has been burned.
However, Shiba Inu currently has a total supply of about 550 trillion, at a price of $0.00001.
Assuming Shiba Inu's $5.81 billion market cap stays the same, the number of tokens in circulation would have to be burned from more than 500 trillion to around 580 billion to raise the price of SHIB to $0.01.
It might be a good idea to focus on Shiba Inu's chances of reaching its ATH this year, before considering a price increase to $0.01.
In the weekly chart, SHIB appears to be trading somewhat in a range after the slump from its ATH.
The memecoin is currently below its 20 and 50-week moving averages, and the RSI appears to have gravitated towards the bearish side.
This indicates that the bears may be in control of the market, and are likely to prevent any price increases.
How likely is Shiba Inu to rally to $0.00008 this year?
The answer to that depends on how quickly the memecoin can break through its major moving averages, before the major resistance around the $0.000017 zone (red line above).
At the same time, as the next Bitcoin halving and bull cycle approach, several cryptocurrencies in the market will experience better chances of rising higher over the next few months.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.