Shiba Inu (SHIB), the crypto industry’s second most valuable meme cryptocurrency by market capitalization, is on course to post a price rise for a fifth consecutive day.
SHIB/USD was last trading just above $0.000007, around 8% up from the multi-month lows it hit last week.
While Shiba Inu’s performance in recent days has been positive, the cryptocurrency is yet to break back above its 50DMA and out of the downtrend it has been stuck within since late August.
While Bitcoin (BTC) looks on course to gain around 15% this month amid optimism about upcoming spot Bitcoin ETF approvals, SHIB remains around 2% lower on the month, probably amid ongoing pessimism about the underwhelming launch of the Shibarium layer-2 blockchain protocol back in August.
Is Shibarium a Failure?
Shiba Inu developers have been working diligently in recent years to boost the underlying utility of the SHIB token by developing a meaningful web3 ecosystem around the token.
A key part of this vision was to launch an Ethereum layer-2 scaling protocol – Shibarium – that could provide a home to the Shiba Inu web3 ecosystem, facilitating fast and cheap transactions in the process.
The blockchain was immediately plagued by problems and outages.
This appears to have dealt significant damage to crypto investors/market participants’ confidence in the project, because blockchain activity on Shibarium has remained very weak ever since.
According to shibariumscan.io, the number of active accounts on Shibarium has been stagnant below 1,000 since early September.
Daily transaction numbers and transaction fees have also been stagnant at very weak levels, suggesting continued poor demand for the blockchain.
Meanwhile, as per DeFi Llama, after peaking at close to $1.5 million in August, the total value locked (TVL) of crypto on Shibarium is also weak at only around $700,000, though admittedly this has risen by nearly $200,000 in the past 10 days.
According to current stats, one could make a strong argument that the Shibarium launch has been a failure.
Of course, it remains very early days for the blockchain and, at some point, it could start seeing some traction.
One thing that would help attract more demand to Shibarium would be if developers could launch more dApps that cover a wider range of use cases.
At present, the top 10 dApps running on Shibarium by market capitalization are all Decentralized Exchanges (DEXs), as per DeFi Llama.
SHIB Price Prediction – Is a Recovery to $1 Underway?
With sentiment in the broader crypto market taking a turn for the better, SHIB price risks seem tilted to the upside.
A break above $0.000007 resistance could open the door to a rally back to SHIB’s 200DMA in the $0.000008s.
But unless Shibarium’s performance takes a significant turn for the better, it seems unlikely that Shiba Inu will be able to keep pace with current market leaders like Bitcoin.
As to whether Shiba Inu will be able to make it to $1 per token, that’s more of a tokenomics problem.
There are currently close to 590 trillion SHIB tokens in issuance, so a price of $1 per token would imply a market cap of $590 trillion, more than the world’s combined stock market and real estate market capitalizations.
At a current market cap of only just over $4 billion, it’s probably safe to assume that Shiba Inu will never reach such a high market cap.
But can SHIB reach a market cap in the tens of billions once again as the bull market matures? Why not.
Shiba Inu Alternative to Consider – Meme Kombat ($MK)
For crypto investors looking for a high-risk, high-reward alternative investment strategy than buying blue-chip meme coins like Shiba Inu, crypto presales are an exciting way to potentially secure quick exponential gains.
An exciting new presale that has been generating a lot of hype recently has been for a crypto start-up called Meme Kombat.
Meme Kombat blend together the world of crypto gaming and gambling with its exciting platform were users are able to bet on the outcomes of exciting battles between characters based on some of the crypto world’s most popular meme coins.
Early $MK investors can also benefit from generous staking rewards, which are currently more than 100% annually.
The project has already raised close to $300,000, despite launching just days ago.