Shiba Inu could drop 97% by 2030, new survey finds

Over the long term, no asset class has been able to compete with the stock market. But when the target is drastically reduced, it is the cryptocurrencies that have overtaken the stock market on several occasions.

Since the March 2020 low, the benchmark S&P500 increased by about 85%. While impressive, this pales in comparison to the over $1.1 trillion gain in global digital currency market value over the past 25 months. This equates to an 819% increase in crypto market value in just over two years.

As you may have guessed, Bitcoin and Ethereum received a lot of credit for this increase in nominal market value. This is because they represent more than 63% of the total value of digital currency, which amounts to almost $1.3 trillion.

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However, it is not these “blue-chips” that have attracted new investors to the crypto arena over the past two years. This honor goes to the same coin shiba inus (SHIB -3.38%).

Shiba Inu Produced Life-Changing Returns in 2021

In a typical year, the best performing stock among thousands of publicly traded stocks will rise perhaps 2,000%. What Shiba Inu did last year makes a 2000% gain look like a good day at the office.

In early 2021, SHIB tokens could be purchased for a microscopic $0.000000000073. If you’re wondering why there are so many zeros, consider that Shiba Inu had a circulating supply of 1 quadrillion when he debuted in August 2020. But less than 10 months later, on October 27, those same tokens would trade hands at any time. -the intraday high of $0.00008841. By eliminating six zeros after his decimal point, Shiba Inu gained a virtually unfathomable 121,000,000%. In other words, an investment of $1 at the stroke of midnight in 2021 would have made you a millionaire less than 10 months later.

Even taking into account the pullback that Shiba Inu experienced to end the year, SHIB tokens ended up around 46,000,000%. Life-changing gains of this magnitude will attract new investors to the crypto space.

As I have highlighted before, the dynamics of the crypto market played a key role in SHIB’s historic gain. While it’s relatively easy for skeptics to short a stock or perhaps buy a derivative, like a put option, those same tools don’t always exist in the crypto realm. Derivatives are not an option outside of Bitcoin, and some crypto exchanges don’t even allow short selling. This allowed a bit of tulip-mania to take shape, with Shiba Inu being one of the main beneficiaries.

Concerned person watching falling crypto chart on tablet.

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SHIB could lose most of its value by the end of the decade

However, the future doesn’t look so rosy for Shiba Inu, at least according to a new survey.

Recently, Searcher interviewed three dozen fintech experts to get their thoughts on where they think SHIB will end the year in 2022, 2025 and 2030, and get their thoughts on what could be the biggest catalyst for the popular coin to short term. If you are a SHIB holder or want to invest at these levels, you probably won’t be happy with the answers.

According to the consensus of 10 out of 36 fintech experts surveyed, SHIB is poised to end 2022 at $0.000018750, which is around 8% down from the token price of $0.0000203 used by Finder , as of May 5, 2022. But the target prices for 2025 and 2030 are considerably lower. Based on a consensus of $0.0000025 for 2025 and $0.000000325 for 2030, the panel expects Shiba Inu to lose 80% by mid-decade and 97% of their value by the end of the decade.

Notice that some of the interviewees believe that Shiba Inu will be completely worthless by 2030. This includes Matt Harry, fund manager at asset management firm DigitalX, and Dimitrios Salampasis, professor of innovation and entrepreneurship. fintech at Swinburne University of Technology.

Of the 30 fintech specialists who offered to know if Shiba Inu was a “buy”, a “sell” or a “hodl” (a term meaning “hold” in the crypto community), only one said that it was a purchase. Seven felt it was worth keeping and 22 called it a sale.

One final note: when 17 respondents were asked what factors would affect the price of the Shiba Inu in 2022, 82% of them rated the “hype coin meme” as the most likely. By comparison, only one of the respondents believed that coin burning (6%) or businesses accepting SHIB payment (6%) would affect its token price this year.

A hundred dollar bill on fire atop a lit stove burner.

Image source: Getty Images.

Shiba Inu faces several headwinds that are unlikely to be overcome

Although the predicted 97% drop in SHIB over the next eight years catches the eye of Finder’s “Cryptocurrency Price Prediction Report”, this is the data on what will affect Shiba Inu’s value in 2022. which are arguably the most revealing.

One of the biggest issues with Shiba Inu is that it lacks competitive edge and differentiation. At its core, SHIB is nothing more than an ERC-20 token built on the Ethereum blockchain. It’s a fancy way of saying it’s just a payout coin. There is nothing special or unique about payout coins. Hundreds or thousands of digital tokens could effectively be used to pay merchants, if merchants were willing to accept them. While other projects are working on decentralized applications and building smart contract capability, Shiba Inu will likely never escape the fact that it’s just a simple, undifferentiated payment coin.

Moreover, it is not even a particularly popular or useful payout coin. According to the online business directory Cryptwerk, only 659 mostly obscure merchants around the world accept SHIB as a form of payment – ​​and 124 of those “merchants” are crypto services, such as wallets and spot exchanges. There are over 500 million contractors worldwide, and the reality is that just over 500 actual retailers accept Shiba Inu as payment. This is probably why only one of the 17 respondents believed that merchants accepting SHIB as payment would be a catalyst in 2022.

Payment coins and protocol tokens on payment networks that produce life-changing payouts have also historically come under fierce selling pressure after their respective peaks. With the exception of Bitcoin, virtually all payment coins and protocol tokens that have gained more than 20,000% in a short time have returned 93%-99%+ of their value within 26 months of the peak. Shiba Inu grew 121,000,000% in less than 10 months. Considering its lack of utility, competitive edge, and differentiation, I can only imagine its reversion will be just as epic.