- Meme token recorded impressive returns in 2021.
- The alt’s path remains plagued with challenges.
- Let us check what SHIB’s future holds following the staggering 46,000,000% 2021 surge.
Investors have used the stock industry as a money-making machine for over a century. Though stocks can underperform, average yearly earnings by equities (over the long run) outshine housing, gold, and bonds.
However, the narrative changed within the past few years. While S&P 500 gained around 90% since the March 2020 COVID low, digital assets had their cumulative value soaring 791% within a similar timeframe. Though crypto’s blue chips, BTC and ETH, played a role in the value surge, its canine-themed Shiba Inu has lured new players into the crypto world.
SHIB Exploded in 2021
Are you wondering how Shiba Inu surfaced to inspire over 1.1 million investors? You might have to evaluate its movements in 2021. Data from Coinmarketcap shows investors with massive wallets could have bought SHIB for $0.000000000073 on 1 January 2021 mid-night. On 27 October, these tokens explored the $0.00008841 ATHs. Eliminating six zeros (0) after the decimal meant Shiba Inu surged a massive 121,000,000%. Individuals that invested $1 enjoyed $1.2 million within ten months.
Despite significant declines during 2021’s last two months, SHIB closed 2021 nearly 46,000,000% up. Moreover, Shiba Inu presented attractive yearly gains. That was enough to lure new money market players. Also, broad market dynamics remained impressive for most of last year.
SHIB’s Journey to $0
Unfortunately, the popular meme coin might never enjoy its impressive hikes again. Though most enthusiasts focus on the asset’s probability of hitting $0.01, the primary question amid the prevailing market situation is whether the alt will eventually crash to $0.
Though envisioning SHIB surrendering its last year’s gains could be painful, many reasons support skepticism about Shiba Inu’s future.
First and foremost, the meme token doesn’t have lasting differentiation or a competitive edge. SHIB is an Ethereum-based ERC20 coin. That means it is nothing beyond a promoted payment token. Also, there is nothing special with SHIB as a payment token, and its relation to ETH translates to costly transactions.
Also, Shiba Inu hasn’t attracted many organizations as a transaction option. Cryptwerk lists 659 merchants accepting the asses as of 7 June 2022. Moreover, 20% of the businesses offer crypto assistance, including digital wallet and brokerage services. That represents only 533 businesses in a globe with more than 500 million tycoons accepting SHIB as payment.
Indeed, Shiba Inu has many challenges awaiting its future. Back to our question; could the meme token eventually fall to $0? Perhaps no.
Shiba Inu boasts over 1.17 million enthusiasts excited about the asset’s future. Even if NFT-based gaming activity and the asset’s metaverse goals fade, its massive user base can purchase dips and control the token from being worthless.
Though the asset’s minimum utility remains low, the backup of over 500 companies globally would protect crashes to $0.
Nevertheless, the challenges highlighted above might see SHIB deteriorating. The meme token hasn’t proved competitive in the ocean of crypto tokens. Though Shiba Inu might escape plummets to zero, long-term sessions can see it exploring multiple zeros before losing its 2021 returns.
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