While it seems that the entire crypto market is going through hard times now, memecoins have proved to be even more susceptible to market fluctuations. SHIB is one of those memecoins that tried to play on the success of Dogecoin, the original memecoin, and actually succeeded. But now, many analysts claim that a speculative token like SHIB has no chances during this crypto winter. In this article, we’re going to take a closer look at that opinion and decide whether Shiba Inu can actually recover soon.
What happened to SHIB
Shiba Inu is definitely the most successful token among the numerous memecoins which exploded in 2021, following the success of DOGE. While many SHIB investors clearly understood that the asset’s popularity is based on memes and excessive speculation, there was still hope they would earn some money at the expense of other investors who came later. As a result, the SHIB price in USD has risen about 150 times during 2021, making it arguably the most successful cryptocurrency of all time.
SHIB was able to surpass DOGE by market cap and become one of the major cryptocurrencies, right behind Ethereum, Tether, and Bitcoin. However, the beginning of 2022 has dealt a devastating blow to the SHIB market: once valued at about $0.00008, it crashed down to less than $0.00001, causing lots of investors to flee. While many tokens have suffered similar declines in price then, it actually seemed SHIB wouldn’t ever be able to recover from this. Many investors wondered: is Shiba Inu dead?
Why SHIB can survive
The outlook is definitely grim for the token, but that doesn’t mean it’s doomed. First of all, the coin has managed to build a strong core community: it has about 800.000 followers on Twitter and a little more than 130.000 members in the official Discord group. Moreover, it’s favored and publicly discussed by a variety of celebrities like Elon Musk or Mark Cuban, and that’s already a sign that SHIB won’t be too easily forgotten. That support is what keeps the token’s price from falling even lower.
There are also built-in mechanisms that can support the price of SHIB. Shiba Inu is a deflationary coin which means its overall supply shrinks over time, making each token more valuable. Some amount of SHIB gets burned every time you buy or sell them, so the more it’s used, the more its price grows. It’s not a good remedy for the current price collapse, but it definitely makes SHIB a more promising token in the long term.