Taking to social media, popular USA blog, D.L, revealed the Gist. In hindsight, Shiba Inu's attraction as a super-popular meme coin in 2021 was based on nothing more than hype and speculation. The coin featured a cute doggy mascot, and was clearly designed to be the next Dogecoin. It went up, not because of any underlying fundamentals, but because people hoped it would go up. There was always somebody willing to pay more for Shiba Inu.
In 2022, popular meme coin Shiba Inu (SHIB -2.11%) is down 76.21%. To say this performance is disappointing would be a colossal understatement. After all, Shiba Inu burst onto the scene in August 2020 as one of the hottest meme coins ever. In 2021, Shiba Inu delivered eye-popping returns of 43,800,000% and the sky appeared to be the limit.
So now comes the moment of truth for Shiba Inu. Is it destined to become the crypto world's equivalent of a one-hit wonder, or is it building real value for crypto investors who continue to hold it for the long term? There are at least two reasons to believe that Shiba Inu could be ready for a bull run in 2023.
The good news is that the creators of the coin are working hard to bring some needed utility to the coin. And that starts with transforming Shiba Inu into a viable payment option. For example, you can now use Shiba Inu as a payment option at a growing number of different merchants. Feeling in the mood for some luxury bling? You can now walk into a Gucci store in North America and pay for your new bag or outfit with Shiba Inu.
In addition, Shiba Inu continues to expand its own ecosystem of products and services where you can use Shiba Inu. For example, the much-anticipated metaverse world from Shiba Inu, known as SHIB: The Metaverse, will feature Shiba Inu as the in-game currency to buy virtual land and non-fungible tokens (NFTs). As the use cases expand, the hope is that investors will increasingly view Shiba Inu not as a meme coin, but as a utility coin.
While the price level itself may seem insignificant on greater timeframes, it has acted as a consolidation and support level for SHIB for the last three months, which led to a significant amount of accumulated order volumes that might become the foundation for the further recovery of the meme token.
However, the lack of traction on the market we are witnessing today affects assets like Shiba Inu severely, making their performance less attractive to investors, who mostly use meme assets like Shiba Inu to gain risk exposure thanks to the asset's high volatility in comparison to other cryptocurrencies.
One of the main drivers of the meme-powered network has always been the enormous burning volume that led to almost a 50% decrease of the circulating supply of the asset. Such a tendency prevailed on the market for quite a long time, forming a distinctive tendency: a high burn rate and more support for the price of the asset.
As time went by, the burn rate of the cryptocurrency decreased, and the aforementioned rule lost its relevance as the insignificance of burning activities made Shiba Inu less attractive in the eyes of speculative traders.
At press time, Shiba Inu is changing hands at $0.000008.
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