Last updated on May 17th, 2023 at 12:05 pm
With the emergence of cryptocurrencies in the digital world, it is becoming increasingly difficult to follow the latest trends in their development. Today we will talk to you about such an unusual digital currency as Shiba Inu or SHIB.
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It is worth saying that it is an Ethereum blockchain token, whose popularity has grown in the past 2021 due to its unique ecosystem and dogged theme, as well as the active participation of investors.
How did SHIB appear?
The digital asset was inspired by the Japanese dog breed of the same name, which sparked a viral comic movement in 2012 and subsequently led to the creation of another famous cryptocurrency, Dogecoin (DOGE).
SHIB coins are currently available on classic exchange platforms. However, it is worth saying that Shiba Inu is currently among the 25 most important cryptocurrencies on the market.
What are the characteristics of a Shiba Inu?
Key characteristics of SHIB are:
Competition with Dogecoin
Since its launch, Shiba-Inu has been declared the main competitor of Dogecoin.
The proof of this is the very fact of having a Shiba-Inu dog on the Dogecoin emblem. As mentioned above, this project was created with a very clear goal.
SHIB cryptocurrency is distributed in a special way. More than 50% of these tokens are entrusted to the financial application Uniswap.
The latter is decentralized and runs on the Ethereum blockchain. It is the sixth largest Defi app in the world with more than $6 billion in capital. The other 50% of SHIB went to Vitalik Buterin, the creator of Ethereum.
What defines the Shiba Inu rate?
The SHIB token is available in the market today at a given value, and this is due to the balance between supply and demand.
Several factors can cause the amount of Shiba requested to be greater than what is available in the market.
That creates an imbalance between supply and demand. In order to correct this imbalance, the price of Shiba must increase in order to reduce demand.
Conversely, the amount of Shiba available in the market can also sometimes exceed demand. In this case, the price of the SHIB token must go down to attract more investors.
Limiting the number of tokens – In terms of liquidity, every digital currency is different.
For some cryptocurrencies, the number of tokens in circulation is limited. For example, with bitcoins, the total number of BTC tokens in circulation can never exceed 21 million. This maximum number was set to avoid a drop in the price of the cryptocurrency.
Quick fame or steady growth?
Most cryptocurrency experts believe that the rate of cryptocurrency Shiba Inu will gradually increase over a certain period.
This may be due to a variety of factors, from public support to depositors. One of the reasons for the current popularity of this coin is that most of the well-known investors from China are very interested in it.
Part of the reason why its value is already skyrocketing, as influential members of China’s cryptocurrency community are constantly advertising it on various platforms.
What are the forecasts for the Shiba Inu price?
The price of the coin is constantly increasing, but will the Shiba Inu coin reach $10 is still an open question. However, it is almost mathematically impossible, given the huge number of SHIBs in circulation.
Aside from the absurd market capitalization, it would take an impossible demand for Shiba Inu to reach $10. It would require a 40,000,000 per cent increase in the Shiba Inu rate, so we can conclude that this is very unlikely.
Technical analysis of Shiba Inu has shown that by 2030 the price of Shiba Inu will reach $0.01. Or a penny.
According to analysts, Shiba-Inu is well-positioned to achieve this feat. The only problem here is the number of tokens in circulation.
It would be very beneficial for the developers to reduce the number of tokens in circulation since this would increase the value of the Shiba Inu.
To summarize, it is worth saying that you should not give up on such a seemingly frivolous cryptocurrency, as everything may change. However, it is up to you to decide what is worth investing in.