Just 1 in 10 Shiba Inu holders are making money at the current SHIB price of $0.0000079.
IntoTheBlock analytics data shows that a further 3% of Shiba Inu holders are at the money, while almost 9 in 10 Shiba Inu holders are currently in the red. That’s over 1 million Shiba Inu investors losing money on their investment. It comes as Shiba Inu is registering its lowest prices since September 2021.
Shiba Inu compares dramatically with tokens like Ethereum and Bitcoin, where half of holders are in the green.
So what does this mean?
Is Shiba Inu a good crypto to buy in 2023?
Below, we’ll look at two bullish cases and two bearish cases for Shiba Inu.
Two reasons not to buy Shiba Inu in 2023
#1 – Shiba Inu has 0 hope of hitting $1 anytime soon
Shiba Inu is not going to hit $1 in your lifetime.
With 590 trillion Shiba Inu tokens here’s what the market cap would need to be at the following prices:
- $0.0001 price – $59 billion market cap
- $0.001 price – $590 billion market cap
- $0.01 price – $5.9 trillion market cap
- $0.1 price – $59 trillion market cap
- $1 price – $590 trillion market cap
The entire cryptocurrency industry is worth under $800 billion right now, and it’s predicted to grow to $4.5 trillion by 2030. At that growth, at best, Shiba Inu could be worth $0.0001 in the next decade.
And what about burning Shiba Inu?
Burning Shiba Inu would mean reducing the number of circulating SHIB tokens, and make it possible to hit $1 in the next few years. There’s just one problem. Only 530 million SHIB has been burned in December 2022 according to Shiba Burn Tracker – at this rate, it would take 83,374 years until enough SHIB is burned to reach a $1 price.
To do better, Shiba Inu could learn a few tricks from altcoins like EverGrow. EverGrow is the leading hyper-deflationary token, as it burns its own supply from a transaction tax (2% of every buy/sell) and 100% of revenue from an ecosystem of innovative applications.
For example, the NFT marketplace LunaSky sends 100% of revenue from mint fees and EverGrow NFT sales to burn EverGrow.
Shiba Inu meanwhile sends just 5% of revenue from the Shiba Eternity game to burn SHIB – and since the game went live in October, the Shiba Inu burn rate has been falling. So it’s not changed anything.
In November, Shiba Inu burned just $6,000 worth of tokens. Meanwhile, EverGrow burned over $250,000. It’s crazy but EverGrow is on track to reach $1 in the next 10 years (it’s currently worth $0.00000009) while Shiba Inu needs 83,000 years (it’s worth $0.0000079).
You can read more about EverGrow here: https://evergrowegc.com/
#2 – Shiba Inu is dominated by whales
According to IntoTheBlock, Shiba Inu is the most concentrated top 20 crypto token.
A huge 80% of the Shiba Inu circulating supply is held by just a handful of wallets. Compare this to Bitcoin, where under 1% of the Bitcoin supply is held by whales.
What does it mean for investors with small-to-medium Shiba Inu holdings?
If just one or two of these whales decided to sell up their SHIB investment, it would send the Shiba Inu price crashing down. These whales have other holdings. Selling Shiba Inu might not impact them a lot – but it could ruin your chances of making any money in SHIB.
Two reasons to buy Shiba Inu in 2023
#1 – Shibarium is getting ready to launch ‘very soon’
The anonymous Shiba Inu developer Shytoshi Kusama announced on Twitter that Shibarium is coming ‘very soon’.
Shibarium is a layer-2 blockchain which can grow the scalability of Shiba Inu’s host chain, Ethereum. Shibarium will allow for Shiba Inu dApps, NFTs and DeFi projects – and it’s expected to launch in early 2023.
Shibarium will grow the Shiba Inu ecosystem, build use cases, and also burn tokens from transaction fees on the network.
#2 – Shiba Inu burn portal will come online again in 2023
Back in May this year, Shiba Inu had its best month of burning tokens. More than 30 billion Shiba Inu entered the burn addresses.
The reason?
A burn portal launched on the ShibaSwap website. The portal allowed Shiba Inu holders to burn their own tokens in return to passive income rewards. After revolutionising the Shiba Inu burn rate and sending investors bullish, the burn portal sadly failed to deliver.
But the portal has been taken over by the lead Shiba Inu development team now. It’s expected to launch again in 2023, and could create a new bullish sentiment for SHIB.
