Shiba Inu, one of the cryptocurrencies worst affected by the bear market, is one of the coins that has made a strong comeback this time. However, cryptocurrency experts caution that Shiba Inu is not yet out of the woods. There are still plenty of threats that might convert this currency into the next Luna.
“The meme coin Shiba Inu isn’t looking good, with our panel projecting a value of 0.000018750 USD by the end of 2022. It would represent a 7.6% decrease in value from its current price of 0.00002029 USD,” the company claimed in its most recent price prediction report, first released on 10th May.
According to the report, a committee of 36 experts projected that the value of Shiba Inus will “plummet” in 2025, closing at 0.000002500 USD in 2025 and 0.000000325 USD by 2030. To be sure, Finder’s valuations don’t foretell whether the token will enjoy a boom in the meantime, so short-term traders could still profit even if it goes to zero.
Challenges with Shiba Inu
Crypto experts put Shiba Inu in the same category as Luna. Neither venture is based on a solid foundation and has no practical application. The most challenging aspect of the Shiba Inu project is its lack of usability. It is because of the fact that Shiba Inu began as a meme currency with a big market cap based on excitement rather than an actual product.
As a result, experts worry that Shiba Inu could become the next Terra Luna, particularly if whales continue to sell. One of the primary reasons why the value of Shiba Inu has dropped in the last six months has been attributed to a lack of use cases.
Experts are in a Dilemma
Investors may be wondering if Shiba Inu is next after Terra’s demise. For the time being, there is a simple answer: no.
Shiba Inu is not currently tied to any tradable stablecoin. However, a Shiba Inu stablecoin is in the works. Shytoshi Kusama, the lead Shiba Inu developer, recently stated that the stablecoin project is “nearing completion” in a Medium post.
The Shiba Inu stablecoin (SHIB) differs from TerraUSD in that it will be tied at 0.01 USD rather than 1 USD. According to Shiba Inu’s founder, this will render stablecoin even more reliable.
SHIB would also be a stablecoin based on algorithms; however, there is no clarity whether it would seek to keep its peg to 0.01 USD at the moment. Moreover, it is unlikely for Shiba Inu holders to support a stablecoin that could drag SHIB down, especially after the Terra catastrophe.
Hence, it is rational to surmise that the developers of SHIB would not employ the same method as the creators of Terra algorithm. Shiba Inu isn’t the only token that investors should be cautious about.
It’s also not the first time such alerts have been issued. Experts have frequently cautioned investors that Dogecoin, like Shiba, may stick in the mud at any time. Following word that Tesla CEO Elon Musk was planning to buy Twitter, the coin’s price soared to roughly 16 cents, then quickly sank to 13 cents in a matter of days.