Shiba Inu & Crypto in the first quarter of 2022
The start of 2022 saw the continuing decline from Shiba Inu’s all time high of $0.00008 in October 2021.
Bitcoin, Ethereum, and all major cryptocurrencies dropped by a minimum of 10%, and on January 21, the entire cryptocurrency market cap dropped by $205 billion within the space of 24 hours. Major market indices also crashed, sparking a gold buying frenzy, followed by a spike in oil prices.
There was panic the following week, as SHIB dipped below $0.00002, approximately 37% from the year open just a few weeks earlier. While there was fear among investors, most who had seen a few cycles in the crypto space remained quietly confident as January came to a close.
Following a week of sideways price movement, SHIB jumped around 60% between the 4th and the 7th of February, reminding the crypto space that the Dogecoin Killer is here to stay. While the remainder of Shiba Inu’s price activity in February was negative, the second half of March saw positive price movement and closed the month in the green.
Despite a rough start to 2022, there are many reasons for cryptocurrency holders to be positive at the end of quarter one.
Like all markets and sectors, January’s crypto crash can largely be attributed to the uncertainty surrounding new COVID-19 variants. Uncertainty around global financial markets further increased in February as Russia commenced an Invasion into Ukraine.
At the time, the use of cryptocurrency was banned in Ukraine. Following an inflow of donations that surpassed $100 million in a month, on the 16th of March, Ukraine officially legalised cryptocurrency.
The conflict in Ukraine is horrific. However, it has solidified the case of cryptocurrency utility beyond any reasonable doubt. Ukraine’s defences are now being funded by cryptocurrency donations sent from around the world.
Exactly a week before president Zelenskyy signed the law legalising crypto in Ukraine, United States President, Joe Biden, signed an executive order for his government to examine the benefits and risks of digital currency. This sparked the conversation around a new digital dollar in the making – the Central Bank Digital Currency.
Basically, the world is finally embracing cryptocurrency, but where does that leave Shiba Inu?
On the 30th of March, Shiba Inu developers announced the release of SHIB: The Metaverse.
More than 100,000 land plots will be released in four phases, valued between 0.2 and 1 ether (ETH). Developers promise that “benefits are centered for the community to thrive and share a truly exceptional environment while being delivered a rewarding experience.”
We will be introducing a unique, and exciting way to earn, while also awarding users to have a personal space in which they will be able to build and manage their own projects.Shiba Inu : The Metaverse
During the introductory phase (2022), 36,431 plots of land will be unlocked, revealing a part of 4 different Districts: Growth District, Defence District, Technology District, and the Currencies District.
The hype around Metaverses? I have no idea, but they are generating big money. In 2021, sporting and culture giant, Adidas, announced partnerships with Coinbase and NFT creators, before acquiring land to build a virtual store in the Sandbox Metaverse.
In closing the SHIB : The Metaverse announcement, SHIB developers invite readers to stay tuned. “We’re ready to shock everyone with new features and ways to implant $SHIB in areas that are set to bring sustained new heights to the asset.”
It is difficult to predict how this is going to play out for Shiba Inu, as the developers have made numerous promises that have not yet been delivered. Shiba Swap was a disappointment, but it is hard to argue with the 46,000,000% gains in 2021 and the team’s continuous efforts to be pioneers among digital currencies (memecoins in particular).
There is increased discussion around the upcoming Ethereum merge (docking), which will see the blockchain transition from a proof-of-work validation model to a proof-of-stake one, reducing Ethereum’s energy consumption by as much as 99.5%.
Although no date has been announced for project delivery, speculation around the merge led to a steady price increase for Ethereum over the second half of March.
As an ERC20 smart contract token on the Ethereum Mainnet, good news for Ethereum is good news for Shiba Inu.
The bottom line. While cyclical, the crypto market is unpredictable. Trading short term is dangerous, even for those with experience, so find investment opportunities with real use cases and only invest money you are willing to lose.
In May 2021, SHIB’s price exploded and instantly created headlines around the world.
Where do you see Shiba Inu in May 2022? Leave your thoughts below.