Shiba Inu Market Might Be Worth As Much As $10 Billion By 2023

An incredible rally has been underway for Shiba Inu (SHIB 3.83%), which is currently up 63% year to date. Cryptocurrencies have done well this year as investors become increasingly hopeful about a gentle landing in the economy.

Can the token’s stellar performance and rising value, however, be maintained indefinitely? Let’s talk about it:

Shiba Inu: what is it?

Tokenized in 2020 by an anonymous party under the moniker “Ryoshi,” the Shiba Inu is a meme currency. Its primary objective is to compete with the cryptocurrency known as Dogecoin.

This references Dogecoin’s logo and Tesla CEO Elon Musk’s Shiba Inu. Its inventors intended it to be a joke currency and didn’t think it would become a leader in blockchain technology.

However, the developers behind Shiba implemented a variety of unique techniques to set their tokens apart in a crowded market. The Shiba Inu blockchain is built on Ethereum rather than Dogecoin.

This enables the developers to design additional uses with greater freedom. In 2022, the group announced that they would build a metaverse that they would call “SHIB: The Metaverse”.

A Shiba Inu-themed virtual world where users may play games, shop, and meet new people. The platform is currently offering early access sales of virtual real estate, which is referred to as “land.”

Users will be able to tailor their own section of the service thanks to these purchases. However, the ‘land’ can only be purchased by using ETH, Ethereum’s native currency, and another asset called Doge Killer.

Before the completion of this project, investors should not set their hopes on an increase in the demand for SHIB tokens.

What motivated the most recent rally?

The recent upswing in the price of Shiba Inu most likely has very little to do with the asset’s fundamentals. The state of the economy as well as the availability of liquid assets strongly impact the value of cryptocurrencies.

In the year 2023, investors are buying digital assets together with shares in the hopes of bringing down inflation. This will avoid a recession by convincing the Federal Reserve to soften its stance on monetary policy.

Traders are feeling upbeat because they anticipate a less aggressive Federal Reserve due to declining inflation. In the second half of 2021, Shiba Inu puppies reached an all-time high in value, rising more than 60,000,000%.

As a result, it might be one of the assets with the fastest-rising prices in history. Most likely, its history of extreme volatility is what attracts speculative cryptocurrency traders trying to make a quick profit.

Notwithstanding, aside from the under-construction metaverse, Shiba Inu lacks any substantial real-world use cases. Because of this, there is a possibility that, in the long run, demand for SHIB tokens will remain strong.

Because of its high level of volatility, it cannot be used as a means of exchange or as a store of value. In addition, it does not offer any benefits in terms of the volume or speed of transactions that may be conducted.

It is programmed on Ethereum, therefore naturally, Ethereum serves as the foundation for its technological capabilities.

Can Shiba Inu make $10 billion? 

Shiba Inu needs to boost its market value by 30% from $7.7 billion to $10 billion. Consider how variable it is and how reduced inflation may assist the economy throughout the year.

It is a very tiny asset, so it has a higher chance of posting enormous profits than its larger competitors do. Its growing brand awareness could help it separate from other meme currencies.

However, investors should remember that Shiba’s price rise is mostly due to speculative activity. Its value may not last as long as other cryptocurrencies with a long history.

Shiba Inu puppies are currently 84% cheaper than their all-time high of October 2021. New investors must avoid being left holding the bag if the latest rally fades out like past ones.

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