Market Sense | Infinite Supply Doge Can Reach $0.6 | But SHIB Cannot Reach $0.1 | Sense?
Disclaimer: This is absolutely what you think. It is indeed financial advice, and if you follow it, take responsibility for your decision to follow it. You are a grown-up now. Don’t come wailing back to me if it did not work.
I was kidding. This is not financial advice.
Navigating The Crypto Space
The crypto space, believe it or not, is still relatively nascent. Even today, as we speak, only 300 million users are estimated to be on board worldwide. That’s a tiny number for a global population of more than 8 billion. That small percentage means we don’t have global exposure as much as a regular stock exchange enjoys.
The “we” here refers to all you crypto users out there. These could include gamers, writers, traders, investors, and more. All of them understand the crypto space as it is now. Now the thing is, when people from the current batch of users start becoming analysts, it becomes mighty hard to understand the rationale at times.
While I point a finger at these part-time analysts, I risk becoming precisely what I accuse them of. But then, I might as well do it since I can’t make sense of the market, market predictions, or market analysis.
Crypto Market | Making Sense
Don’t kid me. Making sense of the crypto market? And that too when it is down? We don’t have analysts out there. We have only hopefuls: the green candle, red candle, breakout triangle, and whatnot. Anyway, I was just curious about two of the meme tokens that I hold – Doge and Shib.
While Dogecoin has an infinite supply, it did reach an ATH of $0.68. While we can argue that the circulating supply is still in the billions, isn’t it right that the devs can open the tap whenever they wish? If so, how could Doge go back to $1 or more while Shib cannot?
Talking about Shib, the token reached an ATH of $0.00008 and has a total supply of 1 quadrillion. Half of this supply was burned early on, while there are dead wallets that keep attracting millions of tokens each week. As we speak, the circulating pool stands at 540 odd trillions. That is still way more than the Doge, but it is a closed system. More tokens cannot be just added.
So, why would a Shib not go to $1, but a Doge will?
Wearing the Analyst Cap | And Failing Miserably At It
I get what most would think: Doge has utility and a positive outlook considering the great Musk having blessed it. 😊 But then Shib, too, is bringing in utility and continues to burn the existing supply. There is Shibarium and games planned on the Shibaverse. Also, this new token, BONE, would act as the token to take care of transactions, so it seems the team has thought this through.
Again, Doge has its utility already in place. Tesla is accepting Doge for the merchandise purchase. And yet, Doge trades at $0.06 at the moment. Blame it on the market conditions – another variable to the mix. SHIB is strangely holding on at $0.000011 to $0.00002, and that’s not far from its ATH. Why is the market condition not affecting SHIB as much as DOGE? Doge has utility, while SHIB doesn’t, at least not yet. Correct?
So, DOGE, with utility and lesser supply, is ten times away from its ATH, while SHIB, with a larger supply and practically no utility at the moment, is just three to four times away from the ATH. Why?
If we bring in the aspect of token burned and SHIB holding its price, that argument should also work for DOGE, right? Isn’t it true that DOGE’s supply has not changed from its ATH to the current levels, and now it has utility, too? So shouldn’t the price rise? But it is hardly happening so.
I Throw Away My Analyst Cap | 😊
All I can see is that analysis and logic don’t work in the crypto space. Right now, it is all emotions and hopes that hodlers have. There is less to no logic as to why one token goes up while the other doesn’t. Moreover, it is logicless as to why there is hope for one token and not for the other with the same set of underlying facts.
So, what do we do? Throw away your analyst cap and buy both tokens. There is an apparent upside to both based on their utility. If you are a Hive user, you would understand it better. The blockchain works, and apps like Splinterlands are driving the utility of the chain. So, it isn’t tricky to see Hive performing better than the larger market despite the fall and slowdown.
Therefore, take your bets and put in your money. Let there be some analysis on your part, other than what wannabe analysts mention out there. Take “DYOR” to heart and….
Have fun! After all, we are still the first movers in this space! 😊
Image Courtesy: Ijmaki at Pixabay.com