Opinion

Predictions for Shiba Inu’s Growth in the Realm of Cryptocurrency

By Ryan Halfpenny

ryan.halfpenny@spartans.ut.edu

Shiba Inu began as a joke coin designed for the cryptocurrency community in August 2020 by an unknown developer named Ryoshi. It has quickly grown into a multi-billion dollar enterprise that would most likely be classified as speculative. 

Shiba Inu is a token on the Ethereum network, which means it runs on Ethereum and there isn’t a Shiba Inu coin. Instead, it’s a Shiba Inu token. Smart contracts can be used with the Shiba Inu token, allowing you to do things with it that you couldn’t do with the coin currency, such as lending it out or allowing others to trade with it while you earn their fees. 

This is why Shiba calls themselves the “doge coin killer,” because you can do so much more with it. Elon Musk tweeted about getting a Shiba Inu puppy in mid-March 2021, which caused the price to skyrocket by 300 percent.

Many videos have been released saying things like “what if Shiba goes to a cent or even more,” or even “what if Shiba goes to a dollar.” I’m not here to claim that won’t happen. I’m here to explain what it would take to make that happen. 

To begin with, a market cap is a word that is used to compare cryptocurrency assets and is most commonly used to indicate the average price of each coin you receive. This number is computed by multiplying the asset’s current price by the current number of circulating coins or tokens. Because the Shiba Inu token is valued about .00005 and the market cap is 21 billion dollars, if the price rises to one cent, the overall market cap will be 4 trillion dollars, which is more than the total amount of money in all cryptocurrency, including Bitcoin. 

If it reaches $1.00, the market cap would be 400 trillion dollars, which is more than the value of every home in the United States combined. Again, I’m not claiming that this is impossible, but I’d like to present you with the facts and let you make your own decision.

Shiba Inu cryptocurrency has been hitting all-time highs recently, which indicates that anyone who has the token is making profit as each all time high is hit. As the price keeps rising, it is likely that we’ll see more profit takers. 

As for owners of a lot of Shiba tokens, they will likely start taking profits which could have significant negative impacts on Shiba’s price. Many of my friends have invested in Shiba solely because they believe the price will rise. This suggests to me that too many individuals are attempting to gain money without adding value, which generally leads to a major crash.

Even though most of the internet is bullish on Shiba, I think the price can only reach around .00007 this cycle. I am comparing the current Shiba run to the previous Doge coin run. By the end of the current cycle, I forecast Shib around .000025 per token.

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