Shiba Inu (SHIB) cryptocurrency got off to a strong start in 2023. Token prices rose 88 percent between the first day of the new year and February 4. However, this joy did not last long. The likes of Ethereum and Bitcoin (BTC) continued to rise over the same period. However, SHIB fell more than 40 percent below its February peak. So, is it time to give up on the dog-themed meme coin? Or should you view this sudden price drop as an invitation to stock up on Shiba Inu tokens? Here are the comments of Anders Bylund, analyst of the US consulting giant The Motley Fool…
What are the Shiba Inu’s potential catalysts?
First, let’s consider why the Shiba Inu was promoted earlier this year. The economy started to show signs of stability and recovery after the ups and downs in 2022. This is good news for any high-risk investment and SHIB definitely qualifies under this heading. On top of that, the cryptocurrency had some price catalysts of its own. It was supposed to bring the benefits of the Shibarium upgrade to the Shiba Inu in the third quarter of 2022. As Kriptokoin.com reported, the launch was postponed to 2023 Valentine’s Day due to technical problems during the development and testing processes. However, a late launch is still better than nothing.
The circulating supply of SHIB tokens was also supposed to drop this year due to the widespread “burning” of the cryptocurrency. In the spring of 2022, Shiba Inu’s developers made token burning easier and more rewarding. The removal of cryptocurrencies from circulation has an anti-inflationary effect. Finally, the Shiba Inu Metaverse project was expected to be brought to life with great fanfare. Because they thought that the virtual world would certainly attract the attention of many consumers and inspire developer activity.
Unfortunately, the expected catalysts never appeared. Another technical glitch delayed the launch of Shibarium again. Three months later, no one knows when this update will arrive. Metaverse launch is still in the background. Recent reports suggest that there will be a “partial launch” at the end of 2023. However, the analyst said, “I wouldn’t bet that this program would also work as planned. Delays have become standard procedure,” he says. On the other hand, the burn rate is struggling to keep up with the rate of newly minted tokens.
Shiba Inu vs crypto world
According to the analyst, Shiba Inu is trying to be a good crypto. But unexpected difficulties often hinder their good intentions. For example, Dogecoin is a simple clone of Bitcoin with a few technical changes. It arguably performs faster, smoother transactions. But according to the analyst, SHIB wanted more. While the SHIB cryptocurrency is an Ethereum-based token, the system also includes the limited supply LEASH token and the governance token BONE. Many people do not know the refined nature of the Shiba Inu. And most of them just don’t care.
Is it possible to get rid of the “meme coin” tag?
On the bright side, Shiba Inu could earn a place among serious cryptocurrencies in the long run, according to the analyst. But he adds, “I really won’t believe it until the long-postponed projects actually come to fruition.” In addition, the analyst uses the following statements:
I mean, Ethereum showed everyone how to perform a much-needed, long-awaited, multi-step platform upgrade. Adding a scalability layer like Shibarium seems trivial by comparison. If there’s one lesson to be learned from the Shiba Inu’s technical problems, it’s that it’s difficult to make smooth upgrades when working with a small developer community. So maybe you shouldn’t rush to sell your Shiba Inu assets today, but I wouldn’t recommend loading up on the low-priced token either. This is a somewhat bearish “hold” recommendation.
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