How Meme Currencies Will Perform in 2023? Can we expect a bullish run?

2023 could be the year of a major bullish run for the Shiba Inu, which promises to bring about the greatest growth opportunities.

Related: Top altcoins to buy in 2023: top coins expected to invest in

Shiba Inu, a well-known meme coin, has fallen 76.21% in value in 2022. A major understatement would be to say that this performance was unsatisfactory. As one of the hottest meme currencies ever, SHIB first appeared on the scene in August 2020. SHIB produced stunning gains of 43,800,000% in 2021, and it seemed like anything was possible.

The test for meme assets like Shiba Inu has thus arrived. Is it going to be the one-hit wonder of the cryptocurrency world, or is it creating real value for crypto investors who hold it for the long haul? At least two factors indicate that Shiba Inu might be primed for a bullish run in 2023. But first, let’s explore what meme currency is.

What are Meme Currencies?

Meme coins are digital currencies that get their inspiration from the Internet and social media jokes and memes. The first meme coin created was Dogecoin (DOGE). A Japanese Shiba Inu dog meme known as Doge served as the basis for the 2013 parody DOGE.

Meme currencies frequently exhibit considerable volatility. They are mostly community-driven and can gain notoriety quickly due to FOMO and online community recommendations. However, their value can abruptly fall if investors start looking at the next meme currency.

Another characteristic of meme currencies is that their supply is either enormous or limitless. While DOGE has no maximum supply and over 100 billion tokens are already in circulation, Shiba Inu (SHIB) has a total quantity of 1 quadrillion tokens. Since meme tokens typically lack a coin-burning mechanism, their abundant supply accounts for their comparatively low values. Millions of meme tokens can be purchased for just USD 1.

Meme Coin or Utility Coin?

In retrospect, Shiba Inu’s appeal as a very well-liked meme currency in 2021 was solely the result of rumors and hype. The coin has an adorable dog as its mascot and was intended to succeed Dogecoin. It rose because people believed it would, not because of any underlying fundamentals. SHIB might always be purchased for more money.

The good news is that the coin’s developers are making a lot of effort to give it some much-needed usefulness. Shiba Inu must first be made into a practical form of payment. For instance, a rising number of various retailers now accept Shiba Inu as a form of payment. Do you feel like some opulent bling? SHIB can now be used to pay for your new bag or outfit in a Gucci store in North America.

SHIB also keeps growing its ecosystem of goods and services that you can use to access it. Shiba Inu, for instance, will be used in SHIB: The Metaverse, Shiba Inu’s highly awaited metaverse environment, to purchase non-fungible tokens and virtual land (NFTs). Investors are expected to perceive SHIB less as a meme coin and more as a utility coin as the use cases grow.

New upgrades are scheduled for 2023

SHIB will also receive the much anticipated Shibarium technical improvement in 2023. It will function more quickly and effectively thanks to our Layer 2 scaling solution. It will become more appealing to users and developers by lowering the cost of doing blockchain transactions.

The project’s lead developer informed the SHIB community via text on Christmas Eve that Shibarium would be arriving “very soon.” Shibarium is probably going to open up a lot more use cases for the SHIB blockchain, therefore as may be predicted, this news is now being seen as a good catalyst for the price of SHIB. There is also speculation that SHIB may soon receive new decentralized financial (DeFi) solutions.

Burn Rate

It is impossible to discuss Shiba Inu possibilities without bringing up the burn rate. In the cryptosphere, the term “burn rate” describes the process of removing coins from the total quantity of circulating currencies, typically by sending them to a digital wallet that is inaccessible.

The total number of Shiba Inu tokens in circulation as of right now is an absurdly huge 549 trillion tokens. Shiba Inu’s market cap would be $549 trillion if it ever crossed the $1 threshold. Consider that there are a total of 21 million Bitcoins in circulation to get an idea of how many coins are in this supply.

Therefore, it’s a race to burn as much SHIB as you can each day. SHIB can be burned in a variety of ways, although it might not be sufficient. It’s just a mathematical barrier that is almost insurmountable. SHIB trades at $0.00000814, which is so absurdly low that it almost seems laughable while having a market cap of $4.5 billion.

Conclusion

Before I can suggest Shiba Inu as a long-term investment, I need to see further proof that the burn rate has been turned up to 11. With its increased focus on functionality, Shiba Inu is beginning to stand out from the group of meme coins with identical dog themes. Shiba Inu may offer upside potential to risk-taking cryptocurrency investors searching for a dog in the hunt in 2023 if it can maintain its transformation from meme coin to utility coin.

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Disclaimer: This blog is for educational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.