Shiba Inu has struggled for the past 12 months after inflation soared above 6% in November 2021. Over the past 12 months, the Federal Reserve has begun to shrink the size of its balance sheet and raise interest rates. This has reduced the liquidity available to altcoins such as Shiba Inu.
- September-October 2022
- Trading volume range: $90M and $400M
- Number of days when the trading volume was more than $1 billion: 0
- September-October 2021
- Trading volume range: $184 M and $18000 M
- Number of days when trading volume was more than $1 billion: 14
Will Shiba Inu go up? Sustained development dynamics
Shib has one of the most aggressive consumer-centric agendas in all cryptocurrencies. The Shiba Inu community has realized that it can only grow if it gets rid of the meme coin tag and has some usefulness. To do this SHIB has devised many projects.
- Shiba Eternity: Shiba Inu launched the game a few weeks ago and the response has been quite good.
- Shib Payments: Shiba Inu has continued to develop payment partnerships that result in increased demand and therefore value for Shuba Inu tokens
- SHIB Burns: SHIB developers are in the process of introducing a platform that would allow holders to burn SHIB tokens, which would reduce the number of tokens in circulation and reduce the burden of lack of scarcity.
- SHIBVERSE: Shiba Inu is making a leap into the metaverse space, since it is rising, Shibaverse’s entry should be easy since it is an already established coin.
- SHIBARIUM: SHIB is built on the Ethereum blockchain that charges huge GAS fees that prevent investors from transacting and reduce the flow of tokens or fiat money into the market. To counter this, SHIB developers are creating their own blockchain that would remove GAS fees, which may or may not be replaced by some other charge from developers.
Will Shiba Inu go up? DOGE vs SHIB
Since they are both meme coins, for now, it’s best to compare their past performances and see which one worked better, DOGE or SHIB. Shiba Inu’s trajectory was more volatile than DOGE’s. Despite the push of Elon Musk and others, DOGE fell after a short period of climbing.
This chart compares the two from the beginning of their Initial Coin Offering (ICO) and shows that Shiba Inu is clearly in better shape than DOGE. SHIB gained 13% while DOGE lost 80% of its value from its initial coin offering.
Will Shiba Inu go up? Conclusion
The development of Shiba Inu and
community efforts have been quite positive and should help Shiba Inu. However, as discussed above, the collapse in liquidity prevents a rapid recovery. Macroeconomics is unlikely to recover this year and will probably recover by the end of next year. Therefore, while Shiba Inu will certainly rise, it is unlikely to be anytime soon.
