Is Shiba Inu (SHIB) a Good Investment?

Decided Shiba Inu is a good investment already? You can buy SHIB today on Robinhood and eToro.

Over the past three years, the cryptocurrency world has seen the rise of Shiba Inu, a dog-themed meme coin that has captured the attention of investors around the globe. Known for its impressive returns and association with other popular cryptocurrencies like Bitcoin and Dogecoin, Shiba Inu has become a hot topic for those looking to enter the world of digital assets.

For those who have been following cryptocurrency trends, the question that may come to mind is whether it is too late to invest in Shiba Inu. The answer? No, while there are positives and negatives, there's still time to get in. The dog-themed meme coin that emerged in 2020 is still in the top 20 largest cryptocurrencies by market capitalization. Is Shiba Inu a good investment? Read on to understand the pros and cons of investing in Shiba Inu, with performance history and tips to store it safely and protect your digital assets.

What Is Shiba Inu?

Shiba Inu was created three years ago. Its founders designed it to capitalize on Dogecoin's success while making it more functional to increase utility and adoption. They built Shiba Inu on top of the Ethereum network to increase compatibility with most exchanges and other decentralized applications (dApps). Shiba Inu is also structured to run smart contracts.

Like many other emerging cryptocurrencies, widespread adoption is still far away. Shiba Inu is accepted as a payment method by only about 40,000 merchants worldwide. In March 2024, Shiba Inu was in the top 10 cryptocurrencies by market cap. How long will it stay there? Recent reports suggest Shiba Inu (SHIB) burned 146 million tokens to maintain its top-ten spot. At the moment, the token is ranked #13 with a market capitalization of around $9.6 billion.

Despite falling from its high, Shiba Inu is still up since its inception, and wider crypto markets could push Shiba Inu higher in 2024. At the moment, it's unlikely to cross $0.01. 

How Does Shiba Inu Work?

Shiba Inu coin (SHIB) is a cryptocurrency created in August 2020. It’s a fork of the already popular cryptocurrency Dogecoin (DOGE) built on top of the Ethereum network. Like DOGE and Ethereum, SHIB is a decentralized, peer-to-peer (P2P) digital currency. Users can send and receive payments without a central authority.

Here is a further dive on how Shiba Inu coin (SHIB) works:

Tokenomics

SHIB is an ERC-20 token that operates on the Ethereum blockchain, leveraging its infrastructure for security and smart contracts. The total supply of SHIB is very large, generally reported to be 1 quadrillion tokens, with some tokens being burned to decrease supply and enhance scarcity.

Community-Driven

SHIB is a project focused on community involvement, commonly called a "meme coin." It became popular through social media and engagement from users, gaining a solid following on platforms such as Twitter and Reddit. The Shiba Army, the community behind it, is important for promoting and supporting the coin.

Decentralized Exchange

The token is tradable on multiple decentralized exchanges (DEXs), including ShibaSwap, enabling users to trade SHIB and other tokens in the ecosystem. Additionally, ShibaSwap provides options like liquidity pools, where users can contribute liquidity and receive rewards.

Use Cases

SHIB started out as a meme coin, but its use has grown to include a platform, a decentralized exchange (DEX), and potential utility in the Shiba ecosystem. The goal is to develop it into a functional token that can be used in real-world situations through various partnerships and developments.

Charity Initiatives

The Shiba Inu community participates in different charity efforts, such as donating to animal shelters and supporting other causes, which helps enhance the cryptocurrency's positive reputation.

Burn Mechanism

Token burns are done regularly to reduce the total supply of SHIB, with the goal of creating scarcity and possibly raising its value over time. This process is typically carried out through community members selling or donating their tokens, which can affect market dynamics.

Staking and Rewards

Users can stake their SHIB tokens to provide liquidity and earn rewards in the ShibaSwap ecosystem. Staking also contributes to network security and encourages user participation.

Integration with DeFi

SHIB is a component of the expanding decentralized finance (DeFi) sector, enabling users to access various financial services without relying on traditional intermediaries like banks.

Volatility and Speculation

SHIB, being a meme coin, is subject to significant volatility and speculative trading. Its value can change considerably due to market trends, social media influence, and overall cryptocurrency sentiment.

Global Acceptance

Over time, SHIB has gained acceptance among different merchants and platforms for transactions, which has broadened its usability and enhanced its presence in the cryptocurrency market.

Shiba Inu operates as a decentralized cryptocurrency that is influenced by community participation, market factors, and ongoing advancements in the DeFi sector.

Shiba Inu Price History

Shiba Inu is still young but had an impressive performance last year. With a starting price of just $0.000000001009, it reached an all-time high (ATH) of $0.00006885 in early November 2021. While it also fell after that, it has risen over 120% in the past year and sits, as of Jul. 12, 2024, at $0.0000165. When dealing with such small numbers, it’s easy to see how holding some Shiba Inu could be a smart long-term investment. 

How Did Shiba Inu Perform in 2023?

Shiba Inu had a tumultuous performance in 2023. While it reached a high on 5 February, with a total trading volume of just under $1 billion, the rest of the year was up and down. Two notable downs came in June and October, when the price dropped to $0.000006793 and $0.000006908, respectively. While it rallied towards the end of the year, increasing investor sentiment and giving hope of new highs, its new highs only showed up in the last month.   

How Much is Shiba Inu Right Now?

As of Jul. 12, 2024, Shiba Inu is priced at $0.0000165.

Shiba Inu Price Prediction

While no price predictor is perfect, a Shiba Inu price forecast can indicate investment opportunities. Benzinga collected the essential info you need to know about SHIB future prices and answered questions like “Will Shiba Inu go up?” Find Shiba Inu price forecasts here.

Where to Buy Shiba Inu

For U.S.-based investors, Coinbase and Kraken are some of the best options for buying Shiba Inu. However, more than 20 sites offer Shiba Inu, including Robinhood, Binance and eToro. You can also consider crypto brokers or crypto apps. Find exchanges where you can buy SHIB crypto. 

How to Store Shiba Inu Safely

To store Shiba Inu safely, consider a hardware or software wallet. There may be a place for each. A software wallet provides you access to the platform you want to make trades easily. A hardware wallet can protect your private keys and sign transactions offline while keeping your Shiba Inu safely offline. 

Best Hardware Wallet

Both Ledger and Trezor support Shiba Inu. They are widely considered the most secure wallets for cryptos to protect cryptocurrency offline while allowing easy access when necessary. 

Best Software Wallet

Shiba Inu can be securely stored in the ZenGo software wallet. ZenGo combines exceptional safety features to protect your cryptocurrency against hackers while allowing you to easily access the currency when needed. 

Pros and Cons of Investing in Shiba Inu

Weigh the pros and cons of investing in Shiba Inu before moving ahead. 

Pros

Strong Community Support

Shiba Inu (SHIB) has developed an active community referred to as the "Shiba Army." This supportive network can help increase awareness, encourage adoption, and participate in the coin's overall growth in popularity.

Potential for High Returns

SHIB, categorized as a meme coin, experienced a rapid increase, gaining significant value previously. Although it is considered highly speculative, investing into SHIB could yield considerable returns, particularly during bull markets when meme coins attract more interest.

Innovative Use Cases

The Shiba Inu ecosystem is growing beyond just a meme coin. It now features projects such as ShibaSwap, which enables users to trade and earn through liquidity pools and yield farming, adding functionality to the coin.

Affordable Entry Point

SHIB is relatively cheap compared to many other cryptocurrencies. This lower price point makes it easier for new investors to join the market without needing to invest a lot of money, thus appealing to a wider range of people.

Viral Marketing Potential

SHIB is a meme-based cryptocurrency that uses social media for viral marketing, helping it to grow rapidly. Memes are easily shared, which can boost visibility and attract potential investors.

Cons

High Volatility

Shiba Inu (SHIB) experiences high price volatility, which can result in considerable financial losses for investors. These sudden changes can pose risks for those seeking stable investments.

Limited Use Cases

Shiba Inu is mainly a meme coin, unlike other cryptocurrencies that have practical applications or technological backing. Its limited utility in real-world uses may affect its long-term value.

Lack of Regulation

The cryptocurrency market, including Shiba Inu, lacks significant regulation, which can pose risks for investors like fraud, hacking, and market manipulation. This situation can lead to challenges regarding trust and the integrity of the investment.

Community-Driven

The future and value of Shiba Inu significantly depend on its community and social media visibility. This can create speculation and excitement, which may not last, potentially causing unexpected declines in value when interest diminishes.

Environmental Concerns

Shiba Inu, like other cryptocurrencies, has the potential to contribute to environmental concerns related to cryptocurrency mining. While SHIB operates on the Ethereum network, which has moved to a proof-of-stake model, conversations regarding the environmental effects of cryptocurrencies may influence potential investors who prioritize sustainability.

Is Shiba Inu (SHIB) a Good Long-Term Investment?

Whether Shiba Inu is a good investment depends on your risk tolerance and overall portfolio. For the majority of investors, Shiba Inu (SHIB) carries too much risk of extreme volatility. However, assessing the long-term viability of any cryptocurrency carries a certain inherent risk, leaving investors to wonder, "Is SHIB a good investment?"

Despite recent surges in Bitcoin, there's no clear indication that Shiba Inu will follow a similar trajectory. If you're willing to watch the market carefully and be ready to sell when it reaches a new high, it can be worth adding Shiba Inu to your investment portfolio. Because of its volatile nature, you should not invest more than you can afford to lose. 

For many investors, the instability and unpredictability might outweigh the potential for high returns. However, with research, assessment of your individual risk tolerance and in discussion with a financial adviser, SHIB could have a minor place in investment portfolios. In the long term, it could reach new ATHs with impressive returns on investment.

What Experts Say on Investing in Shiba Inu

Market analyst at Conotoxia, Grzegorz Drozdz cautions investors about meme coins' unpredictable and volatile nature in the digital asset market. With that understanding, long-term price predictions from Benzinga's experts suggest the potential for robust long-term growth. 

Should You Invest in Shiba Inu?

Shiba Inu is a unique investment opportunity with the potential for huge returns, but it doesn't come without risk. Should you invest in SHIB? That depends on your risk tolerance. However, speculative cryptos have the potential to give investors huge returns in the decades to come, and a diversified portfolio across various crypto assets, along with other investment classes, can be a wise long-term strategy. Learn more about how to trade cryptocurrency.