Two years ago, shiba inu (SHIB 4.15%) was the darling of the crypto world, but what is the situation now? The surprisingly capable joke token (“joke?”) reached its all-time high price of $0.00008845 per token on October 27, 2021, and it was a long way down from there.
Let’s imagine we invest $10,000 in a Shiba Inu at the very top of that tickling cloud top. How much would this investment be worth on November 7, 2023?
Unfortunately, the Shiba Inu chart looks like a waterslide. There is a steep decline in the beginning, followed by a more even trajectory later. Today, that hypothetical $10,000 investment at the absolute peak would be worth just $909.
That’s roughly 20% above multi-year lows in mid-June, when our thought experiment cost just $745. But the current value is still 91% below the starting point.
Ouch, that hurts. Or should I say, what an amazing buying opportunity? Wait a minute, let’s take a closer look at this controversial dog.
Sniffing the Shiba Inu’s Road to Recovery
Often referred to as the “DOGE killer” due to the Shiba Inu community’s semi-serious ambition to replace the ultra-popular Dogecoin cryptocurrency, this cryptocurrency started as a meme, but over time it became more serious. Shiba Inu has shown considerable potential based on its solid theoretical foundations, the rock-solid technology of Ethereum (CRYPTO: ETH) foundations and strong community support.
To restore the value of the token’s owner, Shiba Inu has set its sights on “rejecting another zero”, aiming to push the price above the $0.00001 mark. This is not a very ambitious target, less than 14% above the current price.
For Shiba Inu values to recover from a significant decline, several internal and external factors must work in the community’s favor. Positive sentiment around exchange-traded funds (ETFs) based on the spot price for Bitcoin (BTC 3.03%)especially rumors of an investment giant Black stoneThe iShares approval of a Bitcoin ETF could create market momentum across the sector. This will very likely benefit altcoins like Shiba Inu as well. We might even end up with Shiba Inu-based ETFs someday if the stars align.
In addition, the Shiba Inu development team is working on new solutions that could increase investor confidence and help the cryptocurrency regain its lost value. Mainly, its developers are looking for opportunities to provide smart contract functionality for the upcoming wave of decentralized finance (DeFi) and Web3 applications.
Many cryptocurrencies are throwing their hats into this valuable ring, so there are no guarantees of sudden success. But you can’t win if you don’t play, so it’s good to see some activity on that front.
However, for a significant recovery, the crypto market will need to enter a more sustained bullish phase. I’m referring to the end of crypto winter, possibly driven by broader financial trends, technological advancements, and increased adoption of cryptocurrencies in mainstream finance. The next Bitcoin “halving” is coming soon, which should put an extra spring in the trampoline. Shiba Inu’s Ethereum backers plan to increase the transaction processing performance of the entire network over the next few years.
The interplay of these factors, along with the Shiba Inu Project’s own stages of development and community building efforts, may determine Shiba Inu’s trajectory to regain lost market capitalization.
Barking on the right tree?
So Shiba Inu investors who entered near the peak in 2021 are expecting huge losses on paper so far. There are signs of better days ahead, but even if there is a new bull market for the crypto market, it could take many years to recover that crumbling $10,000 investment from two years ago.
For the rest of us, the Shiba Inu offers a sensible mix of light-hearted marketing, solid technical skills and the potential to win some app development projects in the coming years. I wouldn’t recommend backing up the digital truck to load it with Shiba Inu tokens, but crypto might be worth a small, speculative bet. Just make sure you can handle the rampant volatility surrounding this adorable crypto token.