Is Shiba Inu Crypto Still a Good Investment?

Shiba Inu crypto has survived the bullish days and bearish seasons of the blockchain industry to remain one of the most popular and traded digital assets in the sector.

Despite the introduction of competitor meme coins such as Pepe (PEPE), Floki Inu (FLOKI), Baby DogeCoin (BABYDOGE), Dogelon Mars (ELON), and Milady Meme Coin (LADYS), among others, SHIB, the novel token behind the Shiba Inu ecosystem remains a medium-cap digital asset by market capitalization.

With more than $4 billion in market value, the crypto token continues to see millions of dollars in daily volume, and this has led to a revision of forecasts made by analysts involved in the space. 

While the project has struggled to create the millionaires it once did during the peak of the market in 2021, it has been trending recently due to upcoming upgrades, and other events, that could propel it to new price milestones in the not-too-distant future.

Below, we take an extensive look at some of the positives and negatives that could explain whether this meme-inspired crypto is an asset you can consider adding to your investment portfolio. 

Pros of buying Shiba Inu crypto

Created by a group of people named Ryoshi in August 2020, Shiba Inu is one of the most impactful projects in the space aside from Bitcoin, Ethereum, and the Bored Ape Yacht Club (BAYC). 

While it was supposed to remain a joke project borne out of the meme-inspired digital currency frenzy, Ryoshi and his team have taken their innovation to the mainstream. 

Here are some pros you should consider before deciding investment-wise on the token.

• Scarcity – Many meme coins rely on their community to lift the coin to new price milestones. Aside from that, most of them are inflationary as development teams add more coins to satisfy the needs of demanding fans without considering the effects on tokenomics. While meme projects such as Dogecoin (DOGE) remain inflationary, Shiba Inu is a deflationary token. While inflationary tokens are increased over time, deflationary tokens decrease periodically. Deflationary cryptocurrencies are subject to token burning, a process where a significant part of the virtual currency is removed from circulation. Once this happens, scarcity takes hold of the particular crypto asset. The latest token burning came on 11 July 2023, when Shibburn, an account dedicated to tracking SHIB tokens, shared with their followers that around 601 million SHIB have been burned. While many do not consider the token a store of value due to its total and maximum supply, it still possesses all the attributes of a currency. Aside from scarcity, it is non-counterfeitable, divisible, transportable, durable, and can be used to settle transactions (transactional currency). With consistent burns ahead of the token, many analysts, including Daria Morgen at Changelly Blog, foresee the digital currency nearing its all-time high (ATH) of $0.00008845 in October 2021 on the back of scarcity. According to her, its value could increase to the best possible prices of $0.00002382 by the end of 2025, $0.00005009 (2027), and $0.00015853 by the year’s end of 2030.  

• Investor Confidence – You do not want a situation where you are only after a particular cryptocurrency. As of 21:00 UTC on 12 July 2023, the cryptocurrency has seen a minimum daily trading volume of around $71 million in the seventh month of the year. While trading volume is not discussed much, you should know that it plays an important role in technical and fundamental analysis. Aside from liquidity, the number of long-term holders is another area that makes SHIB a token worth considering. Data from IntoTheBlock shows that the number of addresses holding the crypto for at least one year has reached a new milestone. The number of wallet addresses with SHIB for more than a year has surpassed 835,000, and they make up around 67% of all token holders. Holding onto digital currencies for a long period means anticipation of a potential rise in price in the future.  

• Ecosystem Expansion – According to multiple reports online, Shibarium will be going live in August 2023 after its beta test went live in March. Shibarium is a layer two network, making the project a full ecosystem where all sectors of the blockchain-backed economy will be featured (Metaverse, NFTs, DApps, video games, and many more). This way, the project will not thrive on the price performance of Bitcoin (BTC) and other market movers such as DOGE to increase significantly.

## Cons of buying Shiba Inu crypto

The most important con of the Shiba Inu crypto project is the introduction of popular memes such as Pepe (PEPE), which has claimed a substantial part of the meme coin market over the past months.

As the months roll over, if Ryoshi and the team do not introduce new products that compete with others in all the essential areas of the economy, the project may fail to cross the $1 milestone that’s been missing for most meme-inspired digital assets. 

Consider the above pros and cons and supplement the information here with further research. Also, weigh the risks against the rewards of buying the token. If they are in your favour, you can consider adding it to your investment portfolio.