Traders and investors in Shiba Inu (SHIB) have been gauging what 2023 would bring for the dog meme digital asset, which has gone through a hard patch in recent months, along with many other cryptocurrencies.
However, Binance, the biggest cryptocurrency exchange in the world, named Shiba Inu as one of the top three most watched cryptocurrencies for 2022, placing it in the same company as the two digital assets with the highest market capitalization, Bitcoin (BTC) and Ethereum (ETH).
In addition, in 2022, SHIB has seen an increase in the number of holders, its burn rate, whale transactions, and total volume of transactions, leaving investors to hope for more of the same in 2023. For instance, in October, Finbold reported that Shiba Inu had added over 100,000 holders in 2022 despite price swings.
SHIB technical analysis
The sentiment monitored on the 7-day gauges over at TradingView is mainly on the bearish side, its summary indicating a ‘sell’ at 9, as oscillators stand in the ‘buy’ area at three and moving averages point to ‘strong sell’ at 9.
Taking into account technical indicators like the moving average (MA), moving average convergence divergence (MACD), relative strength index (RSI), and Bollinger Bands (BB), the machine learning algorithms at the crypto tracking platform PricePredictions have projected that Shiba Inu would be changing hands at the price of $0.000008071 on January 1, 2023.
Currently, SHIB is trading at $0.000008294, up marginally 0.06% on the day, although down 0.73% across the previous week, as per data retrieved on December 27. With a market cap of $4.5 billion, Shiba Inu is the 15th-largest cryptocurrency by this indicator.
SHIB to $1 in 2023?
Dogecoin (DOGE) reached an all-time high price of $0.76 in 2021 and had a market capitalization of close to $100 billion then. Even in the most optimistic scenario, the price of Shiba Inu would have to increase by about 90 times before it could achieve the same market value.
Taking into account the total supply of 549,063,278,876,302 SHIB that is now in circulation, for the price of SHIB to reach the desired $1, the market capitalization would need to skyrocket to $549.06 trillion. This is about seven times the market cap of the whole world market ($81.359 trillion), which is not likely to occur.
However, reducing the token supply drastically is the only way to get to $1. As of right now, the supply is being reduced by frequent burning, but a 2,350% rise in the burn rate on December 11—one of the largest recently—and an increase in whale transactions have done little to change the price of SHIB.
Nevertheless, by focusing on the market for non-fungible tokens (NFTs), the platform has successfully carved out a niche in the gaming sector. The SHIBOSHIS project is a group of Shiba Inu NFTs to allow token holders to participate in NFT minting, trading, and the purchase of digital land, in addition to VR gaming.
If the development continues, along with an increase in its burn rate with a fully-fledged ecosystem comprising a decentralized token exchange called ShibaSwap, and two extra tokens, LEASH, and BONE, SHIB may well be a good investment as one of the best cryptocurrencies buy in 2023.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
