The Shiba Inu surprised investors with a massive gain in 2021. But since then SHIB has been struggling. Potential catalysts such as a metaverse project this year have so far not offered a boost to the meme token. So is it time to sell the SHIB?
SHIB unlikely to perform well this year
Interest in meme coins has revived, especially with the significant rise of Pepe (PEPE) in recent weeks. The price of the Shiba Inu (SHIB) has become the subject of intense scrutiny in light of this development. According to Frank Corva, a senior digital asset analyst at Finder, there was a different scenario in the US between May and October 2021. During this period, many people were still receiving incentive checks. Moreover, the impact of inflation on the prices of consumer goods had not yet been felt significantly. As a result, people had more disposable income. This allowed them to participate in speculative trading of meme-coins like SHIB. However, Corva says the current situation in the US and globally has undergone significant changes. As such, he admits it points to a contrasting landscape. Based on this, Corva makes the following assessment:
SHIB is unlikely to do well or reach ATH this year. SHIB reached its ATH level in October 2021 as the crypto market was on its way to its second peak. It is currently trading around 90% below its high.
SHIB, attractive opportunity for investors it provides!
Nick Stekovic, CEO and founder of Project Management Revolution, suggests SHIB is in a favorable position for growth in 2023. Stekovic highlights the token’s remarkable success and continued popularity since its inception. Moreover, SHIB’s unique consensus mechanism provides an attractive opportunity for investors seeking a secure and reliable Blockchain protocol with the ability to scale rapidly. In particular, Stekovic emphasizes:
The unique consensus mechanism makes it an attractive option for investors looking for a secure and reliable Blockchain protocol that can scale quickly.
Stekovic also says that some experts believe SHIB has significant potential to be among the top 10 cryptocurrencies this year “due to low transaction fees and fast transaction times.” The CEO also hints at the ongoing networking developments surrounding Shibarium. The SHIB team has confirmed that their Layer 2 (L2) solution will include the “burning” of tokens for every transaction performed on the network. This means that once a user initiates a transaction on Shibarium, there is a possibility that SHIB tokens will be permanently removed from circulation. In this context, Stekovic makes the following statement:
Shiba Inu is also developing a number of partnerships with major companies and institutions that could help the token reach new heights in 2023. The team behind SHIB is dedicated to creating the best possible user experience for its users. This, in turn, is likely to lead to greater adoption and growth this year.
Shiba Inu’s problem: Huge token supply
Motley Fool finance expert Adria Cimino also reviews SHIB. After the evaluation, the meme explains whether it’s time to sell the coin. If we look at the circulating token supply, Shiba Inu’s exceeds 589 trillion. The problem here is that it limits value gains. For example, if the Shiba Inu hits $1, its market cap will reach $589 trillion. This value is much more than the entire cryptocurrency market and even huge companies like Apple or Amazon.
Recently, however, the Shiba Inu has made progress in meeting these challenges. cryptocoin.comAs you follow, Shiba Inu introduced the metaverse project, which will allow people to buy land and then include games and events. Shiba Inu’s Shibarium allows developers to build decentralized applications on layer-2. It is low cost and has a mechanism for burning tokens. The idea is to lower the token supply.
The good news is that the Shiba Inu started these projects. The bad news is that these projects are not the catalysts to increase the value of the cryptocurrency. In fact, the Shiba Inu has lost nearly 20% in the past month. If these efforts weren’t enough to revive the Shiba Inu, it’s hard to imagine what could boost this meme coin in the coming months.
However, it is not surprising that these developments did not lift the Shiba Inu. These are definitely positive events. However, they still do not solve the problems I mentioned above. If the Shiba Inu does not stand out from its competitors and the token supply remains high, it is unlikely that this SHIB will dominate the cryptocurrency market of tomorrow.
Is it time to sell the Shiba Inu?
The answer depends on your finances, your comfort with risk, and the gains or losses you’ve had from the Shiba Inu so far. Investors who are not gaining or losing too much on their investments will likely be better off selling. If you are facing a potentially huge loss and you can accept it, you may also consider quitting now. Otherwise, you should choose to stay here. If the Shibarium and metaverse project is successful, it is possible for the Shiba Inu to rise a bit. However, in any case, I wouldn’t buy the Shiba Inu today. The cryptocurrency world offers other better opportunities.
The opinions and recommendations in the article are those of the experts and are certainly not investment advice.
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