14 min readInvesting in the Shiba Inu Crypto can be a great way to diversify your holdings. Over the last few years, the Shiba Inu Cryptocurrency has exploded in popularity and maintains it’s fan base despite struggling through the Crypto winter of 2022-2023.
The Shiba Inu markets have generated extraordinary wealth for some, albeit amidst high volatility. The Shiba Inu markets have made some people extreme amounts of money but have also been very volatile. The obvious question is: “Is it too late to invest in Shiba Inu?”
Today (21 November 2024) Shiba Inu (SHIB/USD) is trading at $0.00002 per SHIB, with a market cap of $14076670171 USD. The 24-hour trading volume amounts to $1119577221 USD. SHIB to USD price has changed by 0.6% in the last 24 hours. Bitcoin’s circulating supply is 19785378 SHIB.
Shiba Inu: key points
To profit from price fluctuations in the Shiba Inu markets, you must first understand a few things. The following points are critical to understanding the fundamentals behind this market.
What is Shiba Inu, and how does it work?
Shiba Inu is a Cryptocurrency used for peer-to-peer digital payments or as a payment method where businesses accept it. Originally referred to as a “Dogecoin killer,” it has since evolved into its own ecosystem.
While it is wildly popular with some, it is still a relatively small market cap coin. (Although it has been climbing up the ranks.) People will buy the Shiba Inu coin and pay others with it as a digital currency.
Shiba Roadmap: what’s going on with Shiba Inu?
Shiba Inu has no proper official roadmap, as it is a decentralized platform. However, there have been a few significant events along the way that are worth paying attention to.
The initial purpose and goal of the Shiba Inu coin was described in the so called Woof Papers by the Shiba Inu team where the main objective of the project was an experiment to launch a DAO fully governed by it’s participants.
The first thing is the Shiba Inu network – Shibarium L2, a Layer-2 solution to help avoid expensive transaction fees, as Shiba Inu uses the Ethereum blockchain for its transactions.
That being said, it’s probably worth noting that Ethereum itself will become cheaper due to the recent upgrades.
Doggy DAO is an active part of the Shiba Inu ecosystem, which allows holders of the BONE token, a specialized token that holders can exchange for, to play an instrumental role in the ecosystem’s future as part of the Decentralized Autonomous Organization.
In June 2022, the Shiba DAO voted to halt BONE minting for ShibaSwap rewards, the liquidity provider for Shiba Inu transactions, opting to reserve it for Shibarium validators.
There are Shiba Inu games, as there are games for many ecosystems. There are plans for the metaverse in Shiba Inu, in the form of the official title SHIB: The Metaverse.
Also, there is the ShibaSwap platform, which is being revamped and will display news, trends, and further information about the Shiba ecosystem and provide liquidity swaps.
Shiba Inu ecosystem:
Surprisingly enough Shiba Inu’s tokenomics are developed much better than one can imagine. Here are the core tokens and their purposes within the system:
Shiba Inu (SHIB) – native and fundamental project Cryptocurrency. With the initial supply of 1 quadrillion tokens, Shiba Inu’s price did not surpass the mark of $0.00000008 per coin for the first half year since it was created.
Leash (LEASH) – second token in the ecosystem that represents the rewarding side of the project. It is issued to supporters of the ecosystem and provides various perks to it’s holders.
Leash has a limited supply of only 107,565 and it also known as DOGE KILLER Leash.
Bone (BONE) – a governance token designed within the ecosystem made to be used in the Shibarium to reward validators, that stake their coins. As well as delegators, who pass their voting rights to validators.
Treat (TREAT) – so far a mysterious coin within the Shiba Inu ecosystem whose purpose has not yet been discovered by the masses.
It is yet to be seen what role it will play and how it will affect the utility of the ecosystem in general.
Other Shiba Inu essentials
ShibaSwap. This DeFi platform is dedicated to providing a place for trading Cryptocurrencies, specially does which are related to the ecosystem, such as SHIB and LEASH.
Shiba Inu Incubator. The so called incubator platform aims to find new ways to honor and reward creativity and ingenuity of art beyond the standard forms we know today, such as digital rendering.
Shiboshis. Inu-generated tokens belonging to the non-fungible (NFT) class represent unique collectibles and even have their own social club.
History of Shiba Inu price
The price of Shiba Inu has been all over the place in its history. This is because it is a small market, and it does not take much to move the market in that scenario.
This was especially true in the beginning, as almost nobody was involved. It caught on as a “meme coin” and then took off.
That being said, Shiba Inu is one of many competitors in the Cryptocurrency space, all vying for attention. Below is a chart of its historical pricing:
What comes to specific points of Shiba Inu Cryptocurrency prices, those have been closely following the general Crypto market sentiment, experiencing highs and lows as well as notable moments. Here are just a few of them:
All-time-high
The Shiba Inu token price peaked in November of 2021 with the highest of $0.00006916 and a market capitalisation of $37.97B.
Notable trading volumes have also been recorded at the time, reaching such equivalents as $6.5B per 24 hours.
The Fall
When the Crypto winter of 2021 raged through, depleting the Cryptocurrency market and depreciating the value of many leading assets, such as Bitcoin and Ethereum the Shiba Inu coin followed along.
Hitting a low of $0.00002052 before a short correction in an upwards trend, it subsequently resumed falling rapidly, reaching the lowest price by June of 2023 at $0.000006773.
Recovery
Despite the incredible loss in value and an overall bad season of past ‘winters’, Shiba Inu’s status was preserved as one of the most popular coins, currently placing in the top 20 of Coinmarketcap.
Shib holders remain positive as the coin begins its slow recovery, reaching highest prices since mid August 2023.
Is Shiba Inu safe?
No, Shiba Inu is not safe. It is a highly speculative asset that has garnered most of its attention through social media, not adoption.
Adopting Cryptocurrency has gone much slower than people anticipated, with even Bitcoin struggling. In this sense, Shiba Inu is very far out on the risk spectrum, and therefore it is not until the bigger coins start to attract much attention that Shiba Inu can.
It would be best if you kept in mind that Crypto tends to run in cycles. When everybody is excited about Crypto in general, a coin like Shiba Inu can start to take off.
However, when Crypto goes into what is known as “Crypto winter,” when price does very little, these markets are essentially forgotten.
Unfortunately, many retail traders got sucked into owning Shiba Inu because it is so “cheap.” They ignore that the gains are measured in percentage points, and just because something has a minimal number attached to it does not mean you will suddenly see massive improvements. It’s a bit of an illusion.
Who should invest in Shiba Inu? Is investing in Shiba Inu right for you?
To begin with, you should only invest what you are willing to lose. After all, any time you invest in an asset, you can lose all of your initial capital.
This is going to be true when you are talking about Crypto in general, and when you are talking about the small “altcoins,” it gets even more dangerous.
The idea of “investing” in Shiba Inu is a bit of a misnomer because it is far too volatile to consider an investment in normal terms.
Shiba Inu does have its hard-core followers, but you need to pay close attention to what the community is doing.
That said, it is more likely than not to remain a very small Cryptocurrency, so it should be a small part of a much more extensive portfolio.
To go “all in” into Shiba Inu is inviting financial ruin, as many Crypto traders learned in 2021. (This was not just Shiba Inu, but about anything Crypto-related.)
Shiba Inu should probably be one of the smallest asset allocations you have because of the massive amounts of volatility.
Is Shiba Inu a good investment for the long term?
Shiba Inu is an extraordinarily speculative asset under the best circumstances, offering a certain amount of “high risk/high reward” appeal.
Whether or not it is used in the long term as a currency remains to be seen, but the early signs point to it not being so.
Remember that this was a “meme coin,” essentially an offshoot of Dogecoin, as it had attracted much attention.
Just because somebody says something is money does not necessarily mean everybody agrees. For Shiba Inu to gain traction, it must build a real-world case.
In other words, people will need to be willing to accept it as payment, which becomes an investment. It is simply a way to trade short-term in the markets, hoping for significant gains.
Because of this, you are better off trading Shiba Inu in the CFD market, which is the contract for difference markets.
This is where you enter an agreement with a counterparty to settle the difference between the opening and closing price of the position.
This way, you do not have to take custody, nor do you have to worry about storage. This is how you buy Shiba Inu at PrimeXBT.
How to invest in Shiba Inu?
Investing in Shiba Inu is the same as investing in another Cryptocurrency. You must buy Shiba Inu coins on an exchange and keep them on either the exchange or in a wallet.
You then can sell your Shiba Inu when the price moves in your favour or hold onto it for a longer-term move.
This is how “traditional” trading and investing is done, which can be suitable for longer-term holders.
However, suppose you are more interested in simply profiting. In that case, the best way to deal with Shiba Inu, or another Cryptocurrency, is to use the contract for difference market.
The CFD market offered at PrimeXBT not only allows you to get in and out of the Shiba Inu market quickly, but it also allows you to go both long and short, profiting from the rise and fall of the price.
Furthermore, you can use leverage, meaning you can control a much more prominent position than you usually can afford.
Using the CFD market, you do not worry about custody or wallets; you are just looking for price action to take advantage of. This is quicker and allows you to take many of the complexities of Crypto trading from the process.
Shiba Inu’s price forecasts and future outlook
The future of Shiba Inu’s value is uncertain and so are the Shiba Inu price predictions by the experts. Sadly enough it’s future strongly depends on the community surrounding it and the patrons it has gained over the years.
As past performance showed multiple times and on different occasions, Shib’s increasing price volatility also directly correlates with various social inputs, including those from whales.
Such enthusiasts like Elon Musk, who’s simple post on Twitter can have an incredible effect, are often the market movers for this coin.
- On July 25, 2023 Elon made a simple tween mentioning the Shiba Inu temporary rebranding on Twitter which led to the Shiba Inu (SHIB) coin immediate reaction growing in price by almost 15% in a period of the 2 following weeks.
Because of these factors, its nearly impossible to forecast a somewhat reasonable prediction. And while some experts believe that Shib’s minimum price would stand anywhere at $0.00000836 with an average price of approximately $0.0000108, others express more optimistic opinions.
To put things into perspective, it would be worth the mention that some share the thought that Shiba Inu is capable of reaching a maximum price of $0.0000220 by 2024, which is almost a round double of its latest December average trading price.
However, it is more important to understand, that the huge differences in Shiba Inu price predictions are just one of many other signals that may alert about the growing uncertainty of Shib price in the future.
The bottom line: is Shiba Inu a good investment?
As far as an investment is concerned, not. Quite frankly, Shiba Inu is best used as a speculative asset under the best conditions.
- It still suffers from correlation to Bitcoin and the rest of the Crypto world, all of which are susceptible to risk appetite.
- It is difficult to get much further out on the risk appetite spectrum than Shiba Inu because Crypto is very risky.
- Quite frankly, it’s difficult to imagine a scenario where people are afraid to buy Bitcoin but would jump into Shiba Inu.
Beyond that, you should be aware that Shiba Inu is not widely accepted, so it does not have much in the way of real-world utility. Yes, some places are willing to take it as payment, but those are few and far between.
It would be best if you saw Crypto takeoff for Shiba Inu to invest in the payoff. It’s not that it won’t; it’s just that you need to understand that risk appetite needs to be extraordinarily strong for some of the smaller coins to garner attention.
Also, you need to know that a lot of social media hype drives Shiba Inu, so pay attention to whether or not people out there are willing to hype it.
What is the Shiba Inu coin used for?
Shiba Inu can be used as a currency, but it is built on Ethereum. Because of this, it can have slow processing times and high fees, something Ethereum is working on through various upgrades. Whether or not Shiba Inu is a good investment remains to be seen.
Does Shiba Inu have a future?
At best, Shiba Inu probably has a limited future, perhaps being used for micro-transactions. If you buy Shiba Inu, you must understand that it will more likely than not have a somewhat limited amount of utility.
How much Shiba Inu should I buy?
Shiba Inu is a purely speculative investment; you should not put a ton of your money into it. It is more or less used as a trading vehicle than anything else. Prior to acquiring any Shiba Inu coins you must conduct own research to determine if it's a suitable investment for you or not.
Will Shiba Inu overtake Bitcoin?
Shiba Inu will never overtake Bitcoin. This is mainly because there is an unlimited amount of Shiba Inu coins, unlike the fixed 21 million Bitcoin. From a different perspective, Shiba Inu is a meme coin with low utility and that may not change in the future.
When should I sell my Shiba Inu?
As Shiba Inu is a speculative asset, it can be tricky when you should sell it. You may wish to reduce your position size if you get an outsized gain. However selling and buying - both come with the necessity to understand the market for the asset at the time.
Author
Risk Disclaimer
