Can Shiba Inu Reach 1 Cent? • Price Analysis (2024)

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Shiba Inu is the breed of the infamous Doge. Shiba Inus are cute, lovable dogs that keep getting tangled up in cryptocurrency finance. Shiba Inu has been quiet lately, but all of that might change now that Robinhood has listed it.

What is Shiba Inu?

Shiba Inu (SHIB) is an ERC-20 token, meaning it operates on the Ethereum blockchain. It was launched in August 2020 by the anonymous Ryoshi. Half of the initial supply was gifted to Ethereum creator, Vitalik Buterin. However, Buterin sold his stake early on and donated it to charity. If he held his tokens, they would currently be worth over $10 billion.

Shiba Inu is based off of Dogecoin (DOGE.) A Shiba Inu is a breed of dog and is Dogecoin’s mascot. Shiba Inu was created in response to the wild popularity of DOGE and is hoping to capitalize on the hype.

Shiba Inu is used to power the decentralized exchange (DEX) called ShibaSwap. Users can stake their holdings, provide liquidity and swap SHIB with other tokens on the exchange. However, ShibaSwap has not gained much popularity due to its novelty and is less secure than competitors. While it does not offer a ton of new features to the DeFi space, it is still adds to the value of SHIB.

SHIB is also used as a form of payment. SHIB can be sent to anyone else on the chain for a small fee. This is used by retailers as some accept SHIB as a form of payment. While not a lot of retailers currently accept SHIB as a form of payment, the list may get larger as the token becomes more popular.

Shiba Inu Market Capitalization

At present, SHIB is trading at approximately $0.000011, and its market capitalization is around $6 billion. This represents a significant increase from its lows in 2021, when it was valued at $0.00000516 and had a market cap of under $1 billion. SHIB has demonstrated remarkable consistency in eliminating zeroes from its price, with a yearly increase of over 90,800,000%. It has been one of the most profitable investments not only in the past year, but in the entire history of economics, at least until late 2021. However, following its peak in October, SHIB's value plummeted by a shocking 70%. Consequently, an investment of $100,000 made in October is now only worth $30,000.

Can Shiba Inu Hit $0.01?

The meteoric rise of SHIB has shown us that anything is possible in the world of cryptocurrency. With surprising agility, SHIB outstripped DOGE in terms of market capitalization, taking investors by surprise. However, a per-token value of $0.01 would result in an astronomical market cap in the trillions of dollars, surpassing even the mighty Bitcoin. The colossal amount of capital required for SHIB to attain a penny makes it highly improbable.

How to Buy Shiba Inu

Shiba Inu has quickly gained steam in 2021 due to a large community of investors. Many crypto exchanges have taken notice and now offer the token for trading. The easiest way to buy SHIB is through a crypto brokerage. While a handful of crypto brokerages offer the token, 3 in particular stand out due to their ease of use, security, and focus on education.

Coinbase, eToro and Webull are great options for anyone looking to quickly and securely purchase SHIB. To sign up, you only need an email and a password. The brokerage may also require some basic personal information in adherence to know your customer (KYC) laws. Once you have an account, you can fund it with an ACH or credit transfer. Navigate to the SHIB profile using the search bar and make your trade.

Is Shiba Inu a Bubble?

Due to Shiba Inu’s quick rise in both price and popularity, some say that the memecoin is a bubble, destined for a dramatic decrease in price. Critics contend that SHIB lacks any compelling reason to justify its exorbitant price increase, as it does not offer innovative features or have many significant plans in the pipeline. As a result, many anticipate a price decline and the eventual bursting of the so-called "bubble.".

While some say that the token is a bubble that is doomed, supporters of the token believe in the community of investors it supports. The token bolsters 1.5 million followers on Twitter and has a large number of extremely loyal fans. These fans may not have any intentions of selling, waiting for the price to increase even more.

What Are Memecoins?

Think of memecoins as the class clown of the cryptocurrency world. Just as the class clown uses jokes and sarcasm to gain popularity, memecoins employ social media humor and satire to attract investors. DOGE was the original memecoin, and numerous others have since emerged, such as Tiger King Token and Poo Coin. These tokens depend on their humorous and ironic appeal to capture the attention of potential investors.

Memecoins often do not offer any real services. Because of this, they can often be extremely risky. Memecoins are some of the most volatile investments available to retail investors, so it is important that you invest money you are willing to lose in memecoins.

Is Shiba Inu a Good Investment?

The hype surrounding SHIB shows no signs of abating, despite its already remarkable price surges this year. Conversely, others see it as a bubble, ready to burst at any moment. Shiba Inu’s price will ultimately depend on the investors of the project. While a $0.01 price target may be too lofty of a goal to achieve, there still may be upside to the digital asset given the enormous hype around the coin. If there are large selloffs in the near future, however, the price may crash.

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