Top 8 Reasons why Shiba Coin Price is so Cheap

If you are a SHIB coin holder, you must be excited about the massive step of the SHIBA Authority that they launched ShibaSwap. The launching of ShibaSwap kindled hopes in the mind of Shiba enthusiasts. Why is Shiba coin price still low even after the launch of ShibaSwap? Yes, we discovered 8 technical points that are accountable for Shiba’s price being low.

At the onset of this article, we are telling you that we only focused on technical issues of SHIBA coin. We didn’t take fundamental issues under consideration. But you are very much keen to know the fundamental issues of Shib coin, and then you can visit our recent article written on SHIBA INU price.

Top 8 Reasons Why Shiba Coin Price is so Cheap

1. Huge Shiba (SHIB) coin supply in circulation.
2. Bad crypto market condition.
3. Vitalik’s 40% coin burning puts forth adverse impact.
4. SHIB isn’t considered as a store of value.
5. ShibaSwap just started.
6. Crypto meme coin niche.
7. Crypto experts negatively weighed on SHIB.
8. No institutional Support.

1) Huge SHIBA coin supply in circulation

By the time we were writing the article, the price of a SHIBA token was 0.0000033$, according to coinmarketcap. We can undoubtedly hint at the point of huge circulating supply which is accountable for SHIBA coin’s price being cheap.

There is no need to go too further to understand how huge the supply of SHIBA coins is, rather if you just look at the top 100 coins, you will see it clear.

Surely you will see SHIBA coins with a huge circulating supply in coinmarketcap. The amount of circulating supply of SHIBA coin is 394,796,000,000,000, then comes to BitTorrent which has a circulating supply of 659,952,625,000 BTT, and HOT according to the amount of circulating supply comes in third which has 172,673,864,848 HOT circulating supply. How big SHIBA coin’s circulating supply is will be visible to you right after seeing the crypto comparison chart in the following.

Where is the problem if the circulating supply is higher? Shiba’s ecosystem being a new project is still in its basement. So it goes without saying that the demand of SHIB coins is being vanished because of this huge circulating supply as the demand is yet to grow.

On the other hand, how easily any crypto project price take an increase can be realized after seeing the chart of top 5-less circulating supply coins in the following:

2) Bad Crypto Market Condition

• The current crypto market condition has a grim face to both crypto traders and investors. It is because the market is in a confusion zone. To frankly speak, the price of altcoins in the crypto market depends on the movement of the BTC price. Put simply, right now, BTC has a price of nearly 32K USD; but if the price becomes 50K by tomorrow, you will see an instant price increase in altcoins. The way investors have the courage of investing in altcoin seeing the price growth of BTC, they also lose that courage in the same way once BTC has its price down.

The research result of top analysts strongly indicates that it cannot be assumed whether the crypto bullish trend will continue following the way or not until it surpasses 42K USD by 2021. On the other hand, it will be crystal clear that we will be making an entry into the bearish market if the price of BTC does not surpass 25K USD.

• In that confused state of the crypto market, that the SHIBA INU price is cheap is quite unstrained. Such a fact is not only real in the case of SHIB coin or meme crypto coin but also in other crypto niches too. That every crypto niche has been affected by the market condition ranging from DeFi to NFT or any crypto hot cake can be visible by seeing the crypto comparison table below. In this table, we made Chainlink as the delegate of DeFi, Enjin coin as the delegate of NFT, Kusama as the delegate of polkadot-ecosystem, SushiSwap as the delegate of yield-farming, and SHIBA as the delegate of Meme coin.

3) Vitalik’s 40% coin burning puts forth adverse impact 

It is commonly seen in the crypto industry that any coin burning creates hype for that particular coin; consequently, such burning leaves the project with a positive price movement.

• However, we are seeing a completely opposite scenario in the case of the SHIBA coin. We have no hesitation in saying that Ethereum co-founder Vitalik Buterin’s 40% Coin burning never appeared as lightsome to the whole meme crypto community. And it will be clear to you after seeing the price chart of SHIB. For the convenience of understanding, we are affixing a chart regarding the price of SHIB after the 40% coin burning shortly after. But before that, we would like to remind you of two things, whereas one is that 40% coin burning has been mentioned positively on the SHIB official site.

As per their website-

‘’From its inception, Shiba inu has done things differently. Starting with a supply of quadrillion, our founder, Ryoshi, locked 50% in Uniswap, then ‘’burned’’ the other half to Ethereum co-founder Vitalik Buterin for safekeeping.’’

• They also wrote that VB has utilized SHIB in the largest crypto donation in history to help reverse the devastating spread of ongoing pandemic in India. They said that Vitalik’s 40% burning of total supply to a dead wallet marks their long-term success and stability. In the words of Ryoshi,’’ Thank you to the woofmeister for enabling true decentralization. Now we truly begin.

• On the other hand, many in the crypto industry are suspecting if Vitalik Buterin is involved with the SHIBA coin. It is because hundreds of projects send their coins to vitalik’s wallet for their marketing. But it remains a mystery why Vitalik Buterin burned and donated SHIBA. But we wonder why Vitalik Buterin isn’t making it clear that he is not involved with SHIB!

Now we should move towards the discussion of the 40% SHIB coin burn issue.

• Materially, SHIBA commenced May 2021 and we see its reflection in the SHIBA INU price chart. For example, on 5^th May 2021, the price of SHIBA was 0. 00000176$, but the price jumped up to 0.00003289$ right after a tweet by Elon Musk. But we see a noticeable step-down in price, which has come down to 0.00001628$, right after Vitalik burned 40% of the SHIBA coin. SHIBA coin started following the down-trend and is still on bearish momentum.

4) SHIB isn’t considered as a store of value

• It’s too early to comment on whether SHIBA will be worth being a store of value. Bitcoin’s technology, fundamental and unique use-cases, and limited supply paved its way to be considered as a store of value, and crypto enthusiasts, and institutional buyers are buying Bitcoin for so. In Addition, crypto is considered digital gold. Owing to an erratic tokenomic, and fundamentally being poor, SHIBA is now out of consideration as a store of value.  This state of SHIBA impedes institutions from buying and hoarding SHIBA INU coins. Its price is destined to be nothing without big banks and institutional investors.

5) ShibaSwap just started

There is hearsay in the SHIBA community that the price of SHIB went up without offering any passive income. But now SHIB price is supposed to go up as they are offering the passive earning opportunity. So now what! SHIB’s $0.0000388 on May 1, 2021, is considered to be the all-time high price. However passive income does not mean Get Rich Quick scheme. Because SHIB is not alone in offering passive income in the crypto industry.

Such as, anchorprotocol app is offering 19.47% APY upon holding stable coin UST.

• This passive income will probably encourage people to hold SHIBA coin, but it will take time to bring an impact of this over the whole SHIBA ecosystem.

• There is a mixed reaction about ShibaSwap among people. Some are pleased with APR, and the other some are thinking it to be too low. So, it is easily understood that shibarmy had a huge expectation from this Shib APR. But after researching over the fact, the cryptooof team concluded that Shib is really offering enough return; for example BONE APR for SHIB: 36.45%, BONE APR for LEASH: 46.69%, BONE APR for BONE: 103.95%.

• Only a 10% average return in crypto is higher than any other DeFi projects, which becomes visible to you when you ascertain an average.

• Another thing that is worth mentioning is that SHIB holders actually wanted to get stable coins in return as a staking reward through SHIB coin staking. And we got confirmed of it after running research on the SHIB official Telegram channel.

• There is a group of people who are sunken into confusion that which coin needs to be staked to get a higher profit at the end of a year. Some views are going for SHIB, whereas some prefer LEASH, and the others are in favor of BONE to stake. So, it goes without saying that, it requires time to understand which coin will grow more profit in the long run.

As people are yet to determine which coin to stake with and are still out of staking to observe the situation, maybe, the price increment is nothing but a matter of time. 

6) Crypto meme coin niche

• Owing to the interactive promotion by influencers and retail investors, Meme coins have gained traction in a very short period of time. Unlike Bitcoin and Ethereum, which are solving real-world problems, Meme coins fail to solve real-world problems. With the objective of earning a quick buck, many meme coins have been developed. Some of the coin’s prices got pumped up as celebrities and retail investors promoted them. Only because of this reason, these coins can experience explosive growth down the road.

• Of those niches which became successful in the crypto market were fundamentally strong, such as DeFi. It’s worth noting that no controversial niche came to fruition and it is where the challenge is. Even after DeFi’s success in the crypto space, many crypto-veterans think that DeFi has got some issues including tax, for which Defi will one day get stuck.

• You will find this crypto meme niche as the only one which is both fundamentally weak and based on community. We think you have understood why we talked about DeFi so far; whereas such a successful niche becomes blameworthy for some reason, Shiba is here as a controversial niche and it is the reason behind its price cheapness.

Whether Shiba will come to fruition is a matter of question among people as this crypto project is entangled with newness and lacks fundamental use-cases.

7) Experts negatively weighed on SHIB

Actually there is not that much significant comments from crypto-veterans regarding SHIB. But even then we are mentioning two comments below:

Ben Caselin, head of research and strategy at cryptocurrency exchange AAX, ‘’rather than simply dismissing the hype outright, it’s important to realize that what we are seeing is the mass movement of traders new to crypto moving into the space.’’

Another comment came from the CEO of crypto magazine Block Journal namely David Hasiao which said, ’’ [The ShibArmy] believes that all types of successes need some type of vulnerability.’’

8) No institutional Support

• Institutional investors and banks are less eager to invest in SHIB as SHIB is yet technologically behind. As SHIBA coin is known as a joke coin, many in the crypto community actively avoid this crypto. But if SHIB remains true to its commitment, such a state can be changed.

• Verify to say that, crypto experts used to think DOGE coin is all in all a meme coin. But many of them started thinking that the MEME coin is going to be a significant crypto niche after the arrival of SHIBA coin.

• Institutional support plays a vital role in any coin’s success. The growth becomes slow when there is no positive support from institutions, for example, Polygon is favorite to institutional players due to its ETH scaling solution, an exclusive feature. Whereas the price of Polygon was 0.04$ on 27^th January 2021, the price went up to 2.48$ on 18^th May 2021. Matic even after rebranding its name as Polygon didn’t lose its price because of its support from the institutional side. But SHIBA INU lacks such support indeed. That is the reason SHIBA INU is yet lag behind in case of its positive price movements even after introducing some exclusive features.

Crypto Comparison Chart Between Polygon and SHIBA INU

Conclusion

Actually, time will say whether MEME coins like Shib will gain attraction or not in the market. But Shiba in recent time launched ShibaSwap and staking to grab a space in the market which is appreciable. As Shiba’s retail investors are too excited about Shib that can lead to dawn down the road.

But Shib badly needs institutional support to survive in this space for a longer time. Without such support, Shib can only to the aforementioned all-time-high depending on only the community-based retail investors. However, we will keep you posted on major updates of Shib.