Shiba Inu is a relatively new coin created in August 2020. It is an Ethereum based altcoin whose mascot is a Japanese breed hunting dog called Shiba Inu. The cryptocurrency industry considers this coin an alternative to Dogecoin but fundamentally different in structure and purpose. Shiba Inu is one of the biggest coins in terms of market capitalisation, with a value of more than $21 billion. It is currently ranked at number 13 on Coinmarketcap.
Shiba Inu has shown tremendous growth for the last few months. This year, Shiba Inu has grown by more than 47 million percent enabling a few lucky people to make massive profits. However, its price, like any other cryptocurrency, has been fluctuating due to varied reasons. If you are looking to invest in this coin, here are a few reasons that you can consider.
All cryptocurrencies are volatile. It means that their prices could swing on either side at any time. For that reason, you must take caution. Never invest any money that you would not be willing to lose. Diversifying your investments in various coins instead of just putting everything in one project is the best way of doing it.
1. Listed in multiple exchanges
There is a strong correlation between the value of a digital coin and access. If a coin is easily accessible, then its value tends to grow. More investors can buy and speculate it is spiking its demand. Shiba Inu has been on various exchanges but has recently got listed in a few others, including OKEx and Binance. Its price surged significantly when it was listed on these two exchanges in May 2021. In October, Shiba Inu got a listing in Coinbase Global, the biggest exchange in the United States of America (USA). After this listing, the coin surged by 40% in just two days and later by 20% in November when it got listed on Kraken. In 2022, this coin could be listed in more exchanges like Robinhood, which will likely spur its value. If you get a few tokens now and this happens, you are likely to make some money in 2022.
2. Shiba Inu growing use cases
Shiba Inu has been derided as a joke coin, just like its predecessor Dogecoin. This coin’s value has largely been dependent on its meme status, but as more people get interested in the coin, the coin’s utility seems to be growing. A few serious companies have already shown interest in having this token as payment. These companies include AMC Entertainment Holdings, the largest movie-theatre chain in the world that also stocks memes, and Newegg Commerce, a computer and electronics e-commerce shop. These companies plan to begin accepting Shib tokens as payments for their products. Another potential company looking forward to accepting these tokens as payment is BitPay. These could be a few companies, but the Shiba Inu community pushes this coin to get more acceptance. If more companies and establishments adopt this cryptocurrency as a means of payment, its value will grow in the next few months.
3. Nominal price is still low
Shiba Inu, like most other altcoins (these are other digital coins other than Bitcoin), still has a low nominal price. Compared to Bitcoin currently trading at about $51,000, Shiba Inu’s price is too low. When writing this article, this coin was trading at $0.00003839. Unless you have massive capital, you can only invest in a fraction of bitcoin. However, you can buy more than 1000 Shiba Inu tokens for just about $100. $100 will get you 2.6 million tokens. If the coin grew to one dollar, you would have a cool $2.6 million. This growth is possible considering the factors surrounding this coin and the growth progression it has been showing in the last few months.
4. Shiba Inu growing demand
Shiba Inu began as a meme coin. Most people consider it a joke. However, this perception has led to more people joining the Shiba Inu community to share in the joke and as a result of FOMO or Fear of Missing Out. As more people join the community, they buy more coins and surge demand. Considering that the total supply of this coin is limited, the surging demand has seen the value of this coin oscillate depending on how investors are buying and selling. It has seen more growth than dips and shows the same growth progression. Investing in this coin now is not a guarantee that you will make profits, but there is a high likelihood of doing so come 2022. You can have a couple of thousands of tokens in your portfolio as the token price is still very low.
5. Shiba Inu whales ownership
Very few investors own a significant portion of Shiba Inu. These large owners are known as whales. Research in the cryptocurrency world indicates that about 70% of shib tokens are under the custody of fewer than ten investors. These investors believe in this coin and are looking forward to driving its price up. A majority of them have been adding more coins into their portfolios, an action that has spurred shib token’s demand and pushed its price up. Two whales added more than eight billion tokens in their portfolios in the last few weeks. These purchases and support will see the price of this token rise in 2022, making it a worthwhile investment.