The meme coin Shiba Inu (SHIB) is down nearly 75 percent in 2022. It also failed to maintain a market capitalization of approximately $4.9 billion. This may be due to the collapse of FTX. The rest of the industry suffered from the FTX collapse due to uncertainty. Despite the tough outlook, crypto bulls argue that now is a good time to buy the dip and there are better days ahead for the industry. So can the Shiba Inu rise to a market cap of $10 billion in 2023?
A look at Shiba Inu catalysts
There are many reasons why Shiba Inu bears are negative on the token. First, there is no particularly unique use case for the Shiba Inu. Some tokens and networks can be used to disrupt certain industries or perform certain functions. But the Shiba Inu only has the peer-to-peer payment capabilities that almost every cryptocurrency has. This is partly because the Shiba Inu does not have its own network. Rather, it is an ERC-20 token. That is, it is built on top of the Ethereum network and therefore has interchangeable, transferable properties. Shiba Inu has a fixed supply. But 1 quadrillion, which is a huge amount for investors.
One Shiba Inu-specific catalyst that looks interesting is the upcoming launch of the beta version of Shibarium. Shibarium is a layer 2 scaling solution that will build on Shiba Inu’s protocol and create more individual networks for Shiba Inu. This can lead to lower transaction fees when using the Shiba Inu. As it is an ERC-20 token, any congestion in Ethereum will cause congestion and increase in gas fees for Shiba Inu users. Shibarium will also allegedly come with a burn mechanism that will burn tokens on every transaction, helping to reduce the massive supply of Shiba Inu. SHIB will likely also benefit should the crypto industry bounce back.
Will SHIB reach a market cap of $10 billion in 2023?
Anything can happen in the crypto world. But it’s doubtful that the Shiba Inu has more than doubled and reached a market cap of $10 billion. Instead, crypto investors are more likely to spend the first half of the year cooling off inflation and dealing with macro issues like the last few interest rate hikes. Advisory giant The Motley Fool thinks the Fed will end its rate hikes in the first half of 2023. This will also be positive for crypto.
However, there is no clear idea how long it will take for the contagion from the FTX debacle to be contained and for investors to regain their confidence. It’s also important to remember that the Fed is currently loosening its balance sheet and pulling liquidity from the financial system, which means less funds flowing into risky assets. income. Ultimately, while the price of the Shiba Inu may increase in 2023, it may seem a bit too much to expect it to double…