Why Did Shiba Inu Cryptocurrency Suddenly Gain Popularity?
On the rise of Bitcoin in 2013, Dogecoin was created as meme coin which was backed earlier this year by Elon Musk, the billionaire entrepreneur. The support catapulted the once-obscure cryptocurrency into the mainstream, and it went on to have one of its best runs in history. This surge fueled interest in another coin based on the same Japanese breed dog meme that Dogecoin had previously appropriated. Shiba – Inu was the name given to this coin. Shiba Inu’s creators have dubbed it the “Dogecoin killer.”
Shiba Inu was created in August 2020 by an unknown individual or group of individuals known as “Ryoshi.” However, it was relatively unknown until a few months ago, when Musk tweeted cryptic messages about the Shiba Inu dog. Those tweets suggested to investors that he was shifting support away from Dogecoin and toward Shiba Inu. In addition, a Change.org petition requesting that Shiba Inu be added to the Robinhood trading platform has received a lot of attention. It recently released a series of nonfungible tokens known as “shiboshis.”
All of these factors combined to more than tenfold Shiba Inu’s value in October, giving it a market capitalization greater than even its main rival Dogecoin. The coin also made it into the top ten cryptocurrencies by market capitalization, ahead of Dogecoin.
While both Shiba Inu and Dogecoin have lost ground since then, Shiba Inu has fallen more precipitously. Within a week, its market capitalisation fell from $40 billion to $30 billion. According to CoinMarketCap, the value of Dogecoin has dropped from $37 billion to $34 billion. As a result, Dogecoin has pushed Shiba Inu off the list of the top ten cryptocurrencies.
However, investing in cryptocurrency is risky, and profit is never guaranteed. The market is extremely volatile, and even a tweet from a person with a large social media following, such as Musk, can have a massive impact on the market.
Is Shiba Inu Coin a Good Investment Right Now?
It’s been a whirlwind year for cryptocurrencies, with major players like Bitcoin and Ethereum setting new highs.
However, there are a slew of other cryptocurrencies making waves in the investing world, including newer tokens like Shiba Inu (CRYPTO:SHIB). According to cryptocurrency data aggregator CoinGecko, its price has increased by more than 166 percent in the last seven days. It has increased by 950 percent in the last 30 days.
Obviously, Shiba – Inu is also one of the most affordable cryptocurrencies at the moment, with a current price of $0.00007352 per coin. Is it time to invest in Shiba Inu because of its low price and rising popularity?
Before you invest anywhere, you should think about the long-term potential of the investment. It can be tempting to invest in hot new cryptocurrencies that promise to make you a millionaire overnight, but these investments can be extremely risky.
In general, cryptocurrency is a high-risk investment. Nobody knows whether it will still exist in a decade or two, and even if it does, it is difficult to predict which cryptocurrencies will be the most successful. With new cryptocurrencies being developed on a daily basis, there is no guarantee that today’s investments will retain a competitive advantage in the future.
Is Shiba Inu a good investment now?
Furthermore, Shiba Inu are a particularly risky investment. It was created as a parody of Dogecoin which was created as a parody of Bitcoin, and its reason for this popularity is largely as a result of retail investors buying the cryptocurrency in large numbers in order to drive up its price and make a quick buck.
Shiba Inu has also gained traction as a result of investors petitioning online broker Robinhood Markets to make the token available for trading. The increased media attention has prompted more investors to purchase the cryptocurrency, driving up its price even further.
While there is a chance Shiba Inu will thrive in the long run due to its devoted fan base, it is not the best investment right now. If you are a risk-averse investor, this cryptocurrency might not be for you.
Some believe Shiba Inu coin will soon be listed on the Robinhood app, which is a popular cryptocurrency and investment exchange platform. Robinhood would be one of the coin’s major moves after it was added to Coinbase and Binance, two most popular trading platform.
According to Business Insider, Shiba Inu coin has been added to the list of cryptocurrencies by Public, a retail trading app similar to Robinhood.
According to a Public spokesperson, adding Shiba Inu coin was a good way to provide investors with more options.
The prices of cryptos can be volatile in a very short term and tend to follow different patterns than stock market securities, Public will have Volatility Reminders on crypto pages to ensure investors can make their own decisions with context.
Will Shiba Inu reach $0.1?
The hype surrounding Shiba Inu (SHIB) persists, despite ongoing debate over whether it has faded as a result of recent on-chain metrics.
As a result, cryptocurrency traders are keeping an eye on the latest developments surrounding the meme coin, even as the project reaches another milestone: its official Twitter account has surpassed 1.8 million followers.
To put the numbers in context, SHIB’s Twitter handle is now more popular than Ethereum’s on the microblogging social network platform. Currently, the project’s Twitter account for the Ether (ETH) coin has approximately 1.7 million followers.
Nonetheless, given the SHIB Army’s widespread popularity since October, this achievement is not surprising.
As widely reported, the token increased in value by over 800 percent in a matter of days, helping to propel the price to new all-time highs around $0.000088, though it is now hovering around the $0.000057 area.
Skepticism in the air
The adoption wave had also sparked a positive mood in the altcoins community. It sparked debate about whether meme coins could be sustainable in the long run, given the current price action of Dogecoin (DOGE), SHIB’s direct competitor.
Some retailers are considering or have already adopted the Shiba Inu coin as a form of payment, but others are skeptical. Bedrock Capital founder Geoff Lewis recently compared the SHIB frenzy to Pets.com, which was considered one of the biggest commercial failures during the dot-com bubble.