Crypto Shiba: Can It Plunge To Zero Ultimately?

Shiba Inu (SHIB) the meme cryptocurrency has been a primary attractor for the new investors. Despite the prevalent leading crypto assets like Bitcoin (BTC), Ethereum (ETH), and other players in the market.

The year 2021 was a significant one for the crypto sphere, which was also the case with crypto SHIBA, as it recorded significant gains in the year 2021. Although it accounted for a considerable pullback in the last two months of last year, crypto Shiba Inu (SHIB) ended the year higher by nearly 46,000,000%.

And this might be the biggest single-year gain the crypto enthusiasts ever witnessed for a particular crypto asset, and it’s more than enough to gain traction and attract new money and investors.

Then there was also a factor that it’s relatively easy for skeptics to short-sell a stock or maybe purchase a derivative, like a put option, but there are no derivatives to bet against crypto Shiba Inu (SHIB). Additionally, a bunch of crypto exchanges do not even allow for short selling. This gave birth to a natural purchase bias that, when merged with the social media frenzy, facilitated sending crypto Shiba Inu to the moon.

But there are skepticisms as to how the crypto asset would perform this year and how it would manage to be prevalent in the vast crypto ecosystem. And it is quite foggy for the asset to reach even close to the last year’s performance.

If we look at crypto Shiba, it is an ERC-20 token developed atop the Ethereum blockchain. And there is no such specialty as the payment use case of Shiba Inu. And on top of that, Its ties to the Ethereum network have made transactions via SHIB considerably costly.

Then the coin burn mechanism also most likely would not support crypto, Shiba. Earlier Ethereum founder Vitalik Buterin burned 41% of SHIB’s 1 quadrillion token supply. Buterin was gifted half of Shiba Inu’s coin supply by its founder, Ryoshi, but no future burn events will come near to this. And there are trillions of Shib in circulation, and coin burn might not help as such.

Additionally, the recent downtrends have affected a lot of significant crypto tokens like BTC and ETH, let alone Shiba Inu (SHIB).

With these factors, it is to look forward to how the crypto asset would perform in the future. But it cannot be denied that the meme currency has a lot of advocates, holders, and investors too. And dropping to zero might not be seen for the asset. It stands at the seventeenth position by market cap.

Furthermore, the crypto asset has also seen a lot of developments in its ecosystem in the recent past, adding to its growth and popularity.

At the time of writing, crypto Shiba Inu (SHIBA) is trading at $0.00000776 with a market cap of $4,260,060,489 and is down by around 11% in the last twenty-four hours.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing