Shiba Inu is living proof that decentralised meme-coins have a place in the cryptocurrency top 20.
The Shiba Inu token gave the most jaw-dropping ROI last year, growing 48,000,000% between January 1 and the SHIB all-time high in late October. It means an investment of just $10 of Shiba Inu in early January 2021 would have made you a millionaire within 10 months.
Can Shiba Inu do it again in 2022?
There are many reasons all signalling Shiba Inu will continue to increase in price, adoption and utility. But the monumental returns from a SHIB investment are very unlikely to make you a millionaire from $10 or even $100,000 investments.
We’ll be comparing the pros and cons of investing in Shiba Inu this July with EverGrow – a small market cap cryptocurrency ($60 million) with the potential for explosive growth that’s hard to find once tokens reach the crypto top 20.
Why did Shiba Inu explode in price last year?
Any crypto newcomers in 2022 will see Shiba Inu as an integral part of the crypto industry.
Backtrack just 12 months, and the story was very different.
Shiba Inu launched in late 2020 attributed to an anonymous ‘Ryoshi’ whose intention was to create an experiment in ‘spontaneous community building’. When Ryoshi stepped back to let the project develop by itself, he sent nearly half the Shiba Inu (SHIB) supply to Ethereum co-founder Vitalik Buterin.
Buterin felt uncomfortable with the control, so he burned 41.02% of all SHIB tokens and sent the remainder to a COVID relief fund in India.
Within days Shiba Inu rocketed from out of nowhere to a market cap nearing $14 billion. That’s the market cap of Cardano (ADA) in July 2022. Its sudden popularity sparked investor interest and, during the bull market late last year, Shiba Inu rocketed again to a market cap over $41 billion.
Sure, as a meme-coin Shiba Inu drew popularity from similarities to Dogecoin. But the reasons for Shiba Inu blowing up when countless other meme-coins remain in the shadows was thanks to a combination of timing, making headlines and a monumental, altruistic coin burn.
From early January to late October last year, Shiba Inu grew from $0.000000000168 to $0.00008 in price. That’s a percentage gain of nearly 48,000,000%.
Will Shiba Inu explode in price again this year?
It’s unlikely Shiba Inu will see explosive price growth again this year.
From the May all-time high to the October all-time high, Shiba Inu grew 129% in price. That’s a good return but it’s nothing close to 48,000,000%.
Small cap cryptocurrencies like EverGrow are far more likely to breakout in price this year. EverGrow has a current price of $0.000000149 and a market cap of $60 million. It’s also leading a new field of cryptocurrencies – rather than trying to make a name in the over-saturated meme-coin market.
EverGrow is a reflection token which charges a 14% transaction tax. From this tax, 8% is redistributed instantly to all investors, with 3% set aside for liquidity, 2% for buyback and burn and 1% for marketing.
The first reflection tokens arrived early last year and rewarded investors in a native token.
Built on the BNB Chain, EverGrow rewards all investors in the BUSD stablecoin with more than $37.5 million paid out since launching in September last year. EverGrow also conducts regular coin burns with the 2% buyback and burn tax with 53% of the initial supply already removed from circulation.
Shiba Inu only burned 41.02% before breaking out in price – EverGrow is at 53% in July 2022 and primed for breakout once the bull market returns.
Pros of Shiba Inu investment this July 2022
Below we’ll look at some of the key developments in SHIB and reasons why Shiba Inu is a good investment this July 2022.
Shibarium. Shiba Inu is expected to launch its own layer-2 blockchain network this year. Unlike Dogecoin, Shiba Inu is an ERC-20 token built on the Ethereum mainnet. The Shibarium will give Shiba Inu its own blockchain architecture and allow independent developers and users to build on it and participate in its validation process. Participating users and stakers will be rewarded in the BONE token. Once launched, the SHIB token and all Shiba Inu-related NFTs will move to Shibarium.
Metaverse. Shiba Inu is also expected to launch its metaverse experience SHIB: The Metaverse. More than 100,000 virtual land plots have already gone on sale with thousands snapped up in anticipation of its launch. Shiba Inu lead developer Shytoshi Kusama (a pseudonym) announced the metaverse will be developed in partnership with a leading AAA game studio.
Shiba Collectible Card Game. Gaming veteran William Volk (with years of experience at Activision and ROKiT Games) has been named as a lead on the upcoming Shiba Inu play-to-earn game. The game will have similarities with other collectible card games like Pokémon and Magic: The Gathering. There is also news that Australian studio PlaySide are involved in the game’s development. Players will earn the TREAT token as a reward.
Shi. Shiba Inu will also roll out the Shi stablecoin to be used on the Shibarium layer-2 blockchain. Shi will have a $1 peg and be used to bring value and extra use cases to Shiba Inu.
Whales. July2022 also revealed another plus point for Shiba Inu – it is the second-largest holding among Ethereum whales after USDC. A total of 13.9% of the top 100 Ethereum whale wallets are in SHIB, while 18% is in USDC. Whales are key indicators to watch for bullish price momentum as it shows confidence among experienced investors an asset will increase in price.
Cons of Shiba Inu investment in July 2022
Mystery. Shiba Inu is decentralised. Furthermore, the so-called lead developer Shytoshi Kusama uses a pseudonym and investors only learn of developments through sporadic articles on Medium. Kusama claims he cannot talk about SHIB: The Metaverse due to non-disclosure agreements. Information on the collectible card game and Shibarium are also shrouded in mystery. There’s no centralised hub keeping track of announcements and developments with Shiba Inu – meaning we’re almost relying on the words of an anonymous source.
Dubious tokenmics. A lack of explanation can also lead to conclusions of dubious tokenomics. For example, the BONE token expected to be used for governance and gas fees on Shibarium has a limited supply of 250 million tokens, according to the Shiba Inu woofpaper. BONE is currently being distributed to users participating in staking and rewards activities on ShibaSwap, a decentralised exchange for Shiba Inu. How these tokens will be migrated to Shibarium and used for gas and governance is unclear.
Competition. In the meme-coin space, Shiba Inu is only competing with Dogecoin for popularity. But in the metaverse, layer-2 blockchain and collectible play-to-earn gaming space, there is stiff competition. Shiba Inu will be pitting itself against the likes of Polygon, Decentraland, The Sandbox, Axie Infinity, STEPN and more. While Shiba Inu still has a dedicated following it remains to be seen how it will compete against these leading cryptocurrencies with a decentralised base and general anonymity among lead developers.
Stablecoin dramas. There’s little information on how the Shi stablecoin will be backed up. The only information out there suggests that TREAT will play a role in maintaining the Shi $1 peg. This is not positive news after the dramatic collapse of TerraUSD in May. In the wake of Terra’s collapse, other algorithmic stablecoins quickly moved to back up their $1 peg with real US Dollar or other cryptocurrency reserves.
How EverGrow addresses Shiba Inu’s failings
By not competing with other leading tokens already in the crypto top 20, EverGrow is well placed for rapid adoption in 2022.
The collapse of the TerraUSD $1 peg as well as the Anchor Protocol it supported have put many off DeFi protocols offering fixed APY. Instead, EverGrow addresses the space with an infinitely scalable transaction tax which does not collapse during a bear market.
EverGrow is pushing the boundaries of transparency in the cryptocurrency space, with fully Doxxed core team members who regularly publish their EverGrow wallets ($EGC ticker) onto social media. This allows investors to audit promises the core team will never pump and dump their tokens, and also backs up claims the core team only earns a salary from BUSD rewards like any other investor.
The EverGrow whitepaper clearly set out the tokenomics of the $EGC token – nearly a year later, nothing has changed. There is no V2. The tokenomics are clear for all to see, and there’s no need for moving to a layer-2 blockchain because the BNB Chain is working just fine for EverGrow.
In terms of competition, EverGrow is launching utilities that compete with leaders in the field. But instead of going head-to-head with other cryptocurrency projects, the Crator content subscription platform will compete with brands like OnlyFans or Patreon while undercutting them on commissions thanks to the integration of cryptocurrency payments for creators.
The Abstract metaverse will also be the first cloud-streamed metaverse gaming experience on the market.
Instead of copying what others are already doing, EverGrow is pushing the expectations for what the cryptocurrency space can achieve.
Is Shiba Inu a good investment in July 2022?
Shiba Inu is not going anywhere fast.
While other tokens in the cryptocurrency top 20 crashed out this year (think LUNA, TerraUSD) Shiba Inu has climbed up from 15th to 14th place by market cap size. The confidence among Ethereum whales is also promising that Shiba Inu has a bright future in July 2022.
However, with no way of seeing how developments are going, Shiba Inu investing in July 2022 is largely speculation.