shiba inus (SHIB) has investors watching closely — and wondering if they should get in on the action. The popular meme token soared 45,000,000% last year. It is now the 15th largest cryptocurrency by market value. And at a price of a fraction of a penny, it’s an affordable bet.
But Shiba Inu is also a risky bet. Thousands of cryptocurrencies have appeared over the past few years. The competition is therefore strong. Before you decide to bet on the Shiba Inu, here are three things you need to know.
1. Two catalysts are on the horizon
Let’s start with something positive. Shiba Inu indeed exploded last year. But two things could offer this cryptocurrency player some boost in the coming months.
Shiba Inu plans to launch its own blockchain or layer 2 solution – and it could happen this year. Currently, Shiba Inu is a token running on Ethereum . This means that it is subject to the high transaction costs on the Ethereum network. This new solution – called Shibarium – would eliminate this problem. In fact, the Shiba Inu founder said the transaction fees might even be zero.
The second upcoming catalyst is Shiba Inu’s plan to enter the metaverse. The cryptocurrency recently announced on social media that it will be hosting the Shiberse this year. Shiba Inu called it an “immersive experience.”
Details about Shibarium and the Shiberse are scarce. But speculation over the plans – and any eventual launch – could raise Shiba Inu. Why? Both could help Shiba Inu gain traction in the gaming world.
2. The offer does not favor major increases
Now, on to the negative… shiba inus can rise from here. But the gains are likely to be limited. And one of the main reasons is the supply of cryptocurrency coins. Currently, there are 549 trillion coins in circulation. This means that if Shiba Inu reached $1, its market value would total $549 trillion.
Obviously, it’s almost impossible. Why? Because Shiba Inu would be worth more than the entire cryptocurrency market and some of the largest publicly traded companies in the world. The cryptocurrency market peaked at $3 trillion last year. As for companies… well, Apple is worth $2.8 trillion and Amazon worth $1.5 trillion.
Of course, the fact of burning cryptos could change this image. But for now, there are far too many Shiba Inu tokens to support gains at $1 and beyond.
3. More Shiba Inu Investors Lose Money Today Than They Make
If you had invested just $100 in Shiba Inu just over a year ago, you would have made a fortune . But the thing is, a lot of investors didn’t necessarily buy back then.
In fact, more Shiba Inu investors are losing money at today’s price levels than making money, according to IntoTheBlock. About 59% lose, while 37% win, according to the data.
Why is it important to note it? Because it brings us back to reality. Some investors may be tempted to buy Shiba Inu simply because they are afraid of missing out. They may feel like all the world is making money off Shiba Inu – when in reality it isn’t.
What do these three points mean for investors?
Shiba Inu can climb higher at some point, lifted by the catalysts I mentioned. But the long-term prospects don’t look so bright. Parts supply is a big hurdle. Most investors these days don’t make a fortune on Shiba Inu, which could eventually discourage other investors from buying. And this cryptocurrency has less useful in the real world than many of its rivals. It is important to think about all these elements before considering to invest in this ultra-risky cryptocurrency.
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3 things to know about the Shiba Inu crypto, before thinking about investing a penny in the SHIB token! – The ₿log
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