Will Shiba Inu Reach 1INR?

Table of Contents

Introduction

The inception of Shiba Inu happened in August 2020 and gave Dogecoin a competition as a dog-faced meme coin. Started by an anonymous person called “Ryoshi”, Shiba has now become more than a meme coin. It has evolved into an important player in the crypto market. Donations by Vitalik Buterin into SHIB charity marked another significant milestone in the journey. Shiba is expanding both its technical as well as utilitarian prowess. Let us go through the developments and try to understand how they affect the prices of SHIB.

Current Price Analysis

Shiba Inu tokens have their native token called SHIB. Let us have some current price analysis-

Market Capitalisation: $13,817,465,020
Volume (24): $382,783,795
Total Supply: 589,289,410,812,691 SHIB
Price: $0.00002337 or INR 0.002

Factors Influencing Shiba Inu’s Price

Following are some of the factors that influence the price of SHIB tokens.

Supply and Demand Dynamics– The basic economic dynamics of supply and demand affect the price. The price rises with demand and if the supply exceeds the demand, we see a price drop. It is similar to any other asset.
Product developments and partnerships– One of the most potent ways to improve any token demands is to enhance its use cases. Real-world application produced enhances the scalability as well. Partnerships and the production of related applications are important for price regulation.
Market sentiment– Overall market sentiment about SHIB and the whole crypto market also influences the price. Positive sentiments make people buy the asset and hence increase the demand, pushing the price up.

The present greed score of the SHIB token is 72 out of 100, which is fairly positive. The higher the greed score is, the better the sentiment of the populace about any token.

Adoption and Use Cases

Although labelled as a “meme coin,” Shiba Inu has garnered a committed community of developers who have constructed a decentralised environment around the token, introducing Shibarium, a specialised L2 chain. The token has witnessed notable price fluctuations, marked by significant events like Vitalik Buterin’s generous donation of a substantial SHIB amount to charity. Shiba Inu’s evolution encompasses the debut of Shibaswap, a decentralised exchange, and the rollout of supplementary tokens such as LEASH, BONE and TREAT, enriching its functionality within the ecosystem.

Following are some of the use cases-

Peer-to-peer digital payments: SHIB can be used to make peer-to-peer digital payments.
Decentralised Exchange (DEX): The Shiba Inu ecosystem has launched its decentralised exchange called ShibaSwap, which allows users to trade SHIB and other tokens within the Shiba Inu ecosystem.

Liquidity Provision for SHI Stablecoin: The new TREAT token in the Shiba Inu ecosystem is designed to provide liquidity to the SHI stablecoin, which is planned to be launched in the future.
Incentivisation: The new TREAT token is also designed to incentivise people for their participation in staking and engaging with SHIB pools.
L3 and L2 applications: BONE is an L3 mechanism supporting the L2 Shibarium chain. Shibarium aims to provide improved infrastructure for executing transactions and interacting with decentralised applications within the Shiba Inu ecosystem.

Community Speculation

With the diversification of applications of the Shiba Inu ecosystem, the community is positive about the price rise of SHIB tokens. SHIB is a token which has always remained in media since its inception. Vitalik’s contribution to SHIB charity also led people to trust the token more. Apart from trading, Shiba is now enhancing its utilities, applications and scalability through technological advancements. This has led to increased demand leading to its price hike.

Will Shiba Inu Hit 1 INR?

There is no perfect way to determine the future or value of a particular token. However, based on our assessment it is highly unlikely that Shiba Inu will hit INR 1 The reasons for the same are mentioned below.

The current price of Shina Inu is INR 0.002
Its current market capitalization is close to $13 billion
If Shiba Inu reaches INR 1, its approximate market capitalization would be 1300 billion dollars which is more than the current market cap of Bitcoin
Given that the utility of SHIBA is far lesser when compared to Bitcoin and several other layer 1 and 2 tokens, it is unlikely that SHIBA will compete with the top 10 crypto tokens.

It is important to note that this blog is not an investment advice. Investors are required to conduct thorough research on their own before investing in any crypto-related product.