Shiba Inu (SCHIB 4.72%) wowed investors last year with a 45,000,000% gain over the course of 2021. But this year, the popular meme token hasn’t followed the same path. Shiba Inu declined 70% in the first half of the year. The reason? There are many.
Worries about the economy have weighed on riskier assets — and that includes the cryptocurrency market. Investors also worried about Shiba Inu’s ability to differentiate itself from other competitors — and justify big gains.
Now, with six months left in the year, could Shiba Inu bounce back? let’s find out
The power of the Shib army
First, let’s look at why Shiba Inu has risen so much in the last year. Much credit should be given to the Shib Army. This is the group of loyal fans of the token. They have invested in this young crypto player and supported him on social media. As the token appreciated, others stepped in. Fear of missing out drove this movement. Since the crypto has always traded at a fraction of a cent, investors could easily afford to try it.
Shiba Inu’s profits do not come from any kind of competitive advantage. It’s a token based on that ether Blockchain. And it is mainly used for payments and staking.
So what can help Shiba Inu recover from this year’s losses? A lot is happening in the world of Shiba Inu right now. Developers are working on Shibarium. This is a Layer 2 solution that would help solve the big problem of operating on Ethereum – slow transaction speeds and high fees. All Shiba Inu tokens will be moved to Shibarium after platform launch. That should happen this year.
Shiba Inu also enters the metaverse. It will eventually have more than 100,000 virtual lots for sale. The initial land offering was approximately 36,000 lots. And so far, according to Planet Crypto, 53% of them have been sold.
The latest news is that developers are working on a stablecoin called Treat. It is used as a reward token in the Metaverse and is linked to the Shiba Inu trading card game. This is also currently in development.
A reason for a rebound
All of these projects are either in the release phase or scheduled to launch this year. And together they provide a big reason for Shiba Inu to recover and even win. But I don’t think that will happen, at least not on a large scale.
Here’s why. Of course, these projects are good news. You will make Shiba Inu better and more useful tomorrow than today. But they still don’t solve one big problem: Shiba Inu still doesn’t offer anything unique. competitors such as The sandbox are already well ahead when it comes to the Metaverse. Regarding speed and transaction fees, Ethereum is working on an update that should solve these problems.
Many cryptocurrencies offer staking opportunities and can be used for payment. With thousands of cryptocurrencies out there, a player needs to provide a significant advantage to get to the top and stay there. And from what I can see so far, Shiba Inu doesn’t.
So the latest developments could help Shiba Inu pick up some speed again. But I don’t think they’ll be enough to result in a big recovery — or sustained gains — by next year.