How High Can Dogecoin and Shiba Inu Coin Go?

Oct 30, 2021

How High Can Dogecoin and Shiba Inu Coin Go?

Dogecoin, a new cryptocurrency launched in 2013, was created as a joke mocking the Bitcoin speculative frenzy. The Shiba Inu coin, Dogecoin's canine mascot, was produced by an unknown developer in August, riffing on the previous hoax. The internet jokes grew extremely genuine sometime along the way.

The two "meme coins," as they're known, are now the ninth and tenth most valuable cryptocurrencies, with a combined market valuation of $79 billion. For the first time on Oct. 27, Shiba Inu momentarily outperformed the eight-year-old dogecoin in terms of value. The coin rose on reports that it might be listed on the Robinhood platform.

The crypto market is rife with hype. Meme coins, on the other hand, are one of the riskiest, most puzzling investments. While other cryptocurrencies, such as Bitcoin (a means of payment) and ether (a currency for the Ethereum blockchain that allows decentralized applications such as contracts), have a declared purpose, meme coins are explicitly a collective joke.

Experts claim that the coins are accruing value only due to speculative market demand, despite the fact that they have no core use. Meme coin prices are the latest to rise as speculation has driven up the price of numerous assets in the last year, including meme stocks, crypto, non-fungible tokens, and other collector items. If and when the markets tumble, many individual investors will be burned.

Dogecoin, Shiba Inu coin, and FOMO

The value of cryptocurrencies is soaring. Since the start of 2021, the price of bitcoin, the original cryptocurrency, has roughly doubled, while the price of ether has quintupled. Smaller coins, such as Dogecoin and Shiba Inu coin, have experienced even greater volatility.

Dogecoin is inexpensive, at $0.23 per coin, but the Shiba Inu coin is much cheaper: as of Oct. 28, $1 would get you roughly 14,000 coins. The quantity is virtually limitless: one quadrillion Shiba Inu coins (with 15 zeros). This allows retail investors to amass large amounts of coins at a low cost, as Shiba Inu's whitepaper — or "woof paper" (pdf) as its anonymous author Ryoshi refers to it — emphasizes. The Shiba Inu currency project's primary incentive may be its competition with Dogecoin.

Dogecoin was created as a mechanism to tip online producers, while Shiba Inu's developers are launching ShibaSwap, a "decentralized exchange" centered on the coin and other tokens. However, the purpose of both Shiba Inu coin and dogecoin is unknown. Shiba Inu, on the other hand, is clearly motivated by a desire to dominate the dog-themed coin industry through collective action.

Ryoshi explains, "We acquired the nickname Dogecoin Killer because the value of SHIB is primed and ready to overtake the value of Dogecoin." "Even if SHIB never reaches $0.01, SHIB will be valued proportionately more than the popular canine memecoin due to our publicity and utility."

The initiative has drawn investors in part because, as bitcoin, ether, and other well-known cryptocurrencies become more costly, cheaper coins provide a chance to make large profits quickly (and losses). However, the mindset of an asset bubble, not facts, is driving these returns. "People invest in Bitcoin because they hear about other people making a lot of money and they don't want to be left behind," Itay Goldstein, a finance and economics professor at the University of Pennsylvania's Wharton Business School, explained. The same FOMO is exploited by low-cost meme currencies.

Meme coins bolster detractors' claims that the cryptocurrency market is largely a vehicle for speculation with little real-world utility. "It's a terrible statement about how people value a coin without truly understanding what it does," says Eshwar Venugopal, a finance professor at the University of Central Florida. "I don't believe the ordinary bitcoin investor is concerned about what this project is accomplishing; rather, they are concerned with speculating."

Merav Ozair, a blockchain expert and fintech professor at Rutgers Business School, is concerned that this could have far-reaching implications for the entire crypto market. "I'm scared it'll go down, it'll blow up in people's faces who took the risk, and it'll tarnish everything that has to do with blockchain and cryptocurrency," she said. "No one is paying attention to the real-world applications."

Memes are reshaping finance

Internet memes can be any piece of popular culture found on the internet, though they are most commonly associated with viral jokes, photographs, or videos. While they have had a long history of impact in pop culture and politics, their influence in finance has only recently begun. Retail investors on Reddit and Discord's WallStreetBets forums teamed together in 2021 to pump up meme stocks like GameStop and AMC Entertainment, squeezing short-sellers they believed were undervaluing the companies. (As a result, one hedge fund, Melvin Capital, lost 53% of its investments in January 2021.)

Now, groups on Reddit, Twitter, and other social media platforms appear to be forming around meme coins in the same way, raising their value. The most important differential — and potential risk for investors — is regulation. Financial disclosures and quarterly statements are required for public firms. While GameStop's skyrocketing stock price demonstrates how internet discussion and collective action may push up stock prices (regardless of their underlying value), the company generates real revenue and assets. Meme coins are investment vehicles that do not have an actual business or product to back them up. Because there is no regulation in the United States, users have no idea who is in control of certain cryptocurrencies or how their basic finances work. Even simple compulsory financial disclosures, according to Venugopal, will result in a "sea change" in how customers evaluate cryptocurrency ventures. To put it another way, transparency has the potential to wipe away the riskiest assets.

According to Goldstein, the value of cryptocurrency is still a bit of a mystery. Experts are still unsure how cryptocurrencies should be valued, which is crucial information that could safeguard consumers from speculative bubbles. "We have frameworks to fall back on, so it's easier to analyze stocks," Goldstein said. "The issue with cryptocurrencies is that there is no way of knowing what the price should be." Almost anything may be justified in some way."

Subscribe Our Newsletter

These Closed-End Funds Are on Sale for the Holidays
These Closed-End Funds Are on Sale for the Holidays

That is most certainly not the situation in shops, where supply-chain concerns in 2021 have made Christmas markdowns scarce. However, in a rather obscure financial industry sector known as closed-end funds, some substantial discounts have surfaced.

Stocks
Shopify Stock Price Prediction 2030

Alexander

Shopify Soars 54% in November, Expected to Continue Growing – Shopify Stock Price Prediction 2030

Shopify stock price prediction 2030 looks strong as the company continues to impress with its financial performance and innovation, tapping into AI technology and new growth opportunities.

Stock Market Forecast
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Tamta

How to Start Investing In Crypto
In a world where digital transactions are becoming the norm, one phrase has lately become trendy: cryptocurrency.

discover
How to Trade Using The Volume-Weighted Average Price (VWAP)

Hazem

Volume-Weighted Average Price (VWAP): Definition

The VWAP indicator is a popular tool to confirm market trends and identify the right entry and exit points. However, traders must be aware of its limitations.

Trading
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.