The price of the shiba inu (SHIB) cryptocurrency has gained around 400% in the past month, although it is down by 76% from the all-time high reached in mid-May, reflecting the recent volatility on cryptocurrency markets.
The SHIB price spiked by as much as 26.8% on 31 May, prompting renewed expectations among traders that the coin will rally to rival dogecoin (DOGE).
SHIB is a community-driven project based on the Shiba Inu dog meme, with its popularity primarily driven by social media. It has been dubbed the “dogecoin killer” because the project site claims it “can remain well under a penny and still outpace dogecoin in a small amount of time, with no centralised team, no funding and no direct leadership.”
Investors are now wondering: what does the latest shiba inu (SHIB/USD) forecast look like? And can SHIB beat dogecoin over the long term?
In this article, we review recent shiba coin news and predictions for the price.
Shiba Inu plans decentralised exchange
Launched in August 2020 by anonymous cryptocurrency users, the shiba inu token is based on the same Shiba Inu dog meme as dogecoin, which was itself created as a joke by its founders. The developers of shiba inu describe it as “an experiment in decentralised spontaneous community building”.
Based on the Ethereum blockchain, SHIB is an ERC-20 token that will be the first listed on the ShibaSwap decentralised exchange (DEX). The aim is to compete with other DEXs including Uniswap and Sushiswap. ShibaSwap is undergoing security tests, audits and final updates ahead of its launch, according to the project’s website. The Shiba Inu ecosystem has grown to include ShibaSwap, “fun tokens” and an artist incubator. The developers are also currently working with artists to develop non-fungible token (NFT) ventures.
SHIB has a total supply of one quadrillion, which is designed to allow users to hold billions or even trillions of tokens, according to the developers. This means that shiba inu’s value can remain well under a penny but still generate larger returns for its holders due to the quantity. There are 394.79 trillion tokens in circulation, with a total market capitalisation of $3.47bn (£2.45bn) on 2 June.
When SHIB was created, 50% of the total supply was locked to Uniswap and the remaining 50% was sent to Ethereum creator Vitalik Buterin. According to the project’s website:
“We were the first project following this path, so everyone has to buy on the open market, ensuring a fair and complete distribution where [developers] don’t own team tokens they can dump on the community.”
However, on 13 May, Buterin donated more than 50 trillion shiba inu coins, along with 500 ether (ETH), to the India Covid-Crypto Relief Fund. The shiba inu coins were valued at more than $931m at the time.
Buterin then burned 410.24 trillion SHIB tokens, 90% of his remaining stock, worth more than $6.7bn on 16 May. In a note attached to the transaction he said he would send the remaining 10% to a charity with similar values to the crypto relief fund but with a longer-term goal.
It was not possible to hold the coins in the wallet they were sent to long-term, and a transaction to move them would be interpreted as an action affecting the price. In a note attached to another transaction, Buterin urged other crypto developers not to send him coins in the future without consent, saying, “I don’t want to be a locus of power of that kind.”
The shiba inu price took off on 8 May, when Tesla (TSLA) CEO Elon Musk’s appearance on the Saturday Night Live television show in the US prompted a selloff in dogecoin. The SHIB price climbed from $0.00000279 to $0.00001897, with the trading volume jumping from $367.4m to $6.1bn and immediately lifting the market cap from near zero to $6.2bn, according to CoinMarketCap data.
SHIB traded at an all-time high of $0.0000388 on 10 May but dropped back to a low of $0.00000642 on 19 May, in the days after Buterin offloaded his holding. The price moved up to $0.00001195 on 24 May but retreated to $0.00000732 five days later. It hiked higher to end May at $0.00000928. The coin’s price stood at $0.00000879 on 2 June
Some so-called “altcoins” can spike rapidly when they first launch and then quickly lose their value. Does it mean it is now too late to get in on the action with SHIB?
Shiba coin price prediction: where next for the memecoin?
Technical analysis shows that short-term sentiment on the SHIB coin is bullish, according to CoinCodex, with 19 indicators giving off bullish signals compared with six bearish signals. There is support at $0.00007 and $0.00008 with resistance at $0.000009 and $0.0000010.
The shiba inu price prediction from algorithm-based forecasting site Wallet Investor forecasts that the token will return to the $0.000013 level by the end of the year, reach $0.000023 by the end of 2022 and more than double to $0.000054 by the end of 2025.
The SHIB crypto price prediction from Digitalcoin puts the coin at an average of $0.00001298 in 2021, rising to an average of $0.00001655 in 2022. For the longer term, it estimates SHIB will average $0.00002599 in 2025 and $0.00003911 in 2028.
Coinpedia predicts that the SHIB price will more than double by the end of 2021 to $0.00002023 and move up to $0.00002230 by the end of 2022. It predicts the price will reach $0.00003106 by 2025 and in five years trade at $0.00003860.
The forecast from Gov Capital suggests the price will climb from $0.000004 at the start of July to $0.000008 at the end of December, then rise to $0.0000140 by the end of 2022 and $0.0000450 by the end of 2025.
CoinArbitrageBot is also bullish on the price, forecasting it will rise from an average of $0.000012 in 2021 to $0.000050 in 2024.