SHIBA Inu has experienced volatility for the most part this year.
In the past 24 hours, the value of Shiba Inu has dropped 89% to $0.00001053 – with a market cap of just over $5.7billion, according to CoinMarketCap.
After becoming one of the dominant meme currencies of 2021, Shiba Inu’s value had been on a downward trend for the most part since late October 2021.
Some of this can be attributed to countries threatening or enacting a ban on cryptocurrencies in general.
In late January, for example, Russia proposed to fully ban cryptocurrencies.
Moreover, another reason is inflation.
Meanwhile, Shiba’s price collapse wasn’t stopped by its listing on crypto exchange CoinDCX in November 2021.
Up until then, Shiba was only available on the platform in trade-only mode on CoinDCX Pro.
Last year, Shiba became the first cryptocurrency firm in India to reach a valuation of over $1billion, earning it coveted unicorn status.
On October 28, 2021, Shiba hit an all-time high of $0.00008845.
Shiba rose in value earlier that month following a tweet by Tesla chief executive officer Elon Musk.
Mr Musk has a Shiba Inu puppy and posted a picture of it on the social media site, which triggered a big rally.
But what does the future have in store for the dog meme cryptocurrency?
The Sun spoke to experts to find out what lies ahead – and what the cryptocurrency could be worth this year.
Myron Jobson, personal finance campaigner of Interactive Investor, told The Sun in 2021: “It is difficult to predict the price of something that has an intrinsic value of zero.
“All it takes is a tweet from high-profile individuals who have significant influence on sentiment to cryptos to drive up demand.
“But greater regulatory scrutiny on cryptos threatens to hamper the growth potential of the Shiba Inu.”
What is Shiba Inu?
Shiba Inu is a cryptocurrency token that allows users to hold trillions of them.
Tokens of Shiba Inu feature the same dog as Dogecoin, which became one of the most popular cryptocurrencies last year.
Whether you’ve already invested or not, keep in mind that making money through cryptocurrencies or other investments is never guaranteed.
Cryptocurrencies are especially volatile, so their values can crash with little to no notice.
In other words, it’s important to not put in more cash than you can afford to lose and to never invest in something you don’t understand.
Newer cryptocurrencies are also riskier than those that have been around for longer, such as Bitcoin, and make you more open to scams.
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In particular, there are two interesting developments around Shiba.
First, it announced it will be entering into the metaverse space with a planned launch of “Shiberse” in 2022.
A metaverse is a virtual reality experience where users can interact with others.
Does Shiba Inu have NFTs?
Non-fungible tokens (NFTs) have also become increasingly popular in the crypto community.
NFTs are digital artworks stored on a blockchain that has a unique code, meaning that they can only be owned by a specific individual.
NFTs could be in the form of photos, videos, or audio.
Last fall, Shiba released 10,000 digitalized “lovable creatures” for sale.
Will Shiba Inu’s price rise?
For Shiba in particular, there has been a fair share of volatility in the past year and more.
For example, up until October 28, 2021, the token hit its last record high of $0.00003641 on May 11, 2021.
Shiba is one of the most popular meme coins out there, which typically gain off an internet-based joke.
Factors affecting its price include regulatory crackdowns around the world, comments by high-profile individuals such as Musk, and more.
In May 2021, the value of Shiba Inu soared after Binance announced it would list the coins on the crypto platform.
Its value also rose in September after it began trading on Coinbase.
As we’ve seen in recent months, cryptocurrencies are highly volatile and their values can change rapidly.
Jordan Belfort – the investor dubbed the Wolf of Wall Street – slammed meme coins as “s**t”, insisting some of their creators should go to jail.
Mr Belfort told The Sun in November: “I’m a fan of blockchain but there’s a lot of nonsense out there, a lot of s**t coins which serve no purpose and are only there to separate people from their money.
Simon Peters, cryptoasset analyst at eToro, added: “As to whether its value will increase – it is possible.
“As more exchanges begin to list the token and provide investors the opportunity to gain exposure, like any asset it will become more routinely traded alongside the likes of Bitcoin and Ethereum.
“That being said, anyone investing in such tokens needs to do so carefully.”
Charlie Barton, investment specialist at comparison site Finder, also told The Sun the wider crypto market view is also important right now.
He added: “Many coins are unlikely to see much growth until it’s clear that sentiment is moving in a positive direction.”
What will Shiba Inu be worth in 2022?
Plenty of cryptocurrency fans have predicted Shiba Inu’s value for 2022, but you should take it with a pinch of salt as it’s nowhere near guaranteed.
Some crypto forecasters have priced predictions on the Musk-touted cryptocurrency.
For example, crypto website Wallet Investor expects Shiba to be valued at just $0.0000561 in a year’s time.
Coin Price Forecast predicts Shiba will trade at $0.00004266 by the end of 2022 and $0.00005546 by the middle of next year.
In other words, if you’re hoping for this cryptocurrency to get close to $1, you’ll be waiting a long time.
In fact, it’s “impossible” for Shiba to reach $1 because there “simply isn’t enough money” in the world, according to Don Guo, chief executive of Broctagon Fintech Group.
For the meme coin to hit $1, it would require a “one-quadrillion” market value.
We rounded up five things you need to know about the Shiba Inu tokens.
Plus, check out four things you need to know about Dogecoin.
And keep up to date with the what 2022 has in store for Cardano ADA.
What are the risks of investing in crypto?
Investing in any cryptocurrency is risky – here we round up what you need to know.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
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