Crypto investors and fans are wondering if the scaling solution for the meme coin will make it a big year for the token.
This meme coin community got it behind
As cryptokoin.com previously mentioned, the Shiba Inu was built as an ‘experiment in decentralized spontaneous community building’. Known as the Shib Army, backers helped the Shiba Inu become famous on social media platforms. As the Shiba Inu began to rise, the fear of losing pushed more investors to add some Shiba Inu to their holdings. But all that enthusiasm hasn’t helped the Shiba Inu stay warm through the crypto winter.
As mentioned, the Shiba Inu crashed last year along with the overall crypto market. As inflation soared, investors avoided risky assets like cryptocurrency and opted for safer investments. Meme coin is heading towards an important moment. One of its lead developers said last month that Shibarium is coming ‘very soon’.
Currently, Shiba Inu is a token that runs on Ethereum. This means that it is subject to network congestion and the high transaction fees often associated with this major blockchain. Switching to Shibarium should eliminate these issues. Shibarium is a positive development, but not enough to generate lasting interest in this meme coin. This is because the Shiba Inu still remains mainly a payment token. Also, even Shibarium doesn’t help SHIB stand out among thousands of cryptocurrencies.
Meme coin’s biggest problem
Token supply is seen as a problem for Shiba. Today, the Shiba Inu has 549 trillion tokens in circulation. At the same time, the value of the Shiba Inu is a fraction of a cent. If the Shiba Inu were to really go up, its market value would also go up. However, the number of tokens in circulation limits the earnings. For example, if the Shiba Inu hits $1, its market cap would be $549 trillion.
Considering that the entire crypto market is valued at around $806 billion, this kind of gain seems pretty impossible. There are efforts to burn Shiba Inu tokens, basically to take them out of circulation. However, you would have to remove almost the entire supply to end up in a situation where the Shiba Inu could reach $1 or more.
Of course, the Shiba Inu could still technically become a multipacker this year if it triples. It is always better to invest for the long term. That’s why it’s best to avoid the popular meme coin and look for more promising opportunities, according to the company.