Shiba Inu had one the most successful launch in cryptocurrency history. Many referred to the asset as a “millionaire maker” because of its rapid gains. SHIB’s price skyrocketed by many million percent soon after its debut, and early investors made humongous profits with minimal investments. According to Changelly’s ROI calculatorYou would have earned more than one million dollars if, in August 2020 you purchased $10 worth Shiba Inu and then sold the shares when SHIB reached a record high price of $0.00008616 (October 28, 2021), you could. Let’s discuss if SHIB can replicate this massive growth cycle once again.
Shiba Inu can still turn 10 dollars into $1 million.
One of the primary reasons for Shiba Inu’s (SHIB) incredible popularity is the fact that it turned several early investors with little to no investing knowledge into multi-millionaires. Many people, however, bought SHIB near the peak and now have losses. On the other hand, people who missed out on SHIB’s incredible 2021 rally wonder if the asset can replicate its previous pattern.
There were several factors that drove Shiba Inu’s (SHIB) incredible 2021 rally. One of the most significant drivers for SHIB’s price was Vitalik Buterin’s massive token burn. The Ethereum co-founder received half of SHIB’s entire supply upon launch. Shiba Inu’s association with Buterin led to a big surge in investor confidence, leading to high demand. Buterin, meanwhile, decided to burn 90 percent of the coins that he had received. SHIB prices soared as a result of the sudden decrease in supply, despite high demand.
Shiba Inu coins (SHIB), which are still in circulation, total 589 trillion. This high level of supply makes it difficult to achieve very high price levels. A second Buterin-style burning is also nearly impossible. Lead developer Shytoshi Kusama has also said that burns alone will not push SHIB’s price. Prices will only rise if the project is adopted more widely.
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It is therefore unlikely that Shiba Inu will be able replicate the rally from 2021. If the project is able to drastically decrease its supply while increasing demand we may see a massive increase in price.
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Source: watcher.guru
