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The 1 Thing Shiba Inu Does Better Than Virtually All Cryptocurrencies

The 1 Thing Shiba Inu Does Better Than Virtually All Cryptocurrencies
Written by publisher team

It has been a great year for the investment community. Housing prices rose and the standard Standard & Poor’s 500 It reached twenty-five record closing highs in 2021.

But these gains pale in comparison to the upside we’ve seen in the crypto space since the coronavirus pandemic 20 months ago. The total value of all digital currencies has grown from $141 billion to $2.71 trillion, according to CoinMarketCap.com. One of the tokens driving this shipment is the meme coin Shiba Inu (CRYPTO: gray hair).

Cryptocurrency investors had an insatiable appetite for Shiba Inu-inspired coins in 2021. Image source: Getty Images.

Explanation of Shiba Inu’s historical gain of 17,000,000% in 15 months

Shiba Inu debuted on August 1, 2020. In less than 15 months, it has made its way to the top ten of all cryptocurrencies by market capitalization and has crossed $30 billion in value. At its peak, we’re talking about 17,000,000,000% gains in just over a year. Keep in mind that an investment of $10 on the day it debuted would make you a millionaire, based on an all-time high of $0.00008,841 per SHIB token.

This historical gain in SHIB is a function of several factors. For example, as Shiba Inu rose in the rankings and became more valuable, an increasing number of cryptocurrency exchanges have listed SHIB for trading. With the increase in access to the Shiba Inu coin, the size of the community has also increased. About 872,000 digital wallets own a stake in Shiba Inu, as of last week.

The SHIB coin also swept higher after the launch of ShibaSwap four months ago. ShibaSwap is a decentralized exchange that allows “scammers” to share their coins and earn passive income. The main catalyst here is the incentive for SHIB investors to stick to their tokens for an extended period of time.

And of course, no discussion of Shiba Inu is complete without mentioning the role Tesla MotorsHe played CEO Elon Musk. Although SHIB tokens are not in the digital wallet of the richest person in the world, Musk recently adopted a Japanese dog of the Shiba Inu breed, which he named Floki. Anytime Musk tweets about his dog or posts a meme containing Shiba Inu, investors treat it as a signal of a SHIB price hike.

A person sends text messages on their smartphone, and a chat bubble appears above the device.

Image source: Getty Images.

Shiba Inu does this better than 99.9% of all cryptocurrencies…

But there is one more thing that has pushed SHIB to the top, which is what Shiba Inu does better than almost any other cryptocurrency: creating a buzz on social media.

While investor sentiment and FOMO have limited potential in terms of stock prices, the cryptocurrency space has been an entirely different beast. If the digital currency can generate enough sustainable buzz in the short term, scammers can enjoy historical gains. There have been quite a few four-, five- and six-digit percentage gains in crypto in a three-year time frame. Or, in the case of Shiba Inu, he made 17,000.00% profit in just 15 months.

According to a report by Bacancy Technologies, Shiba Inu averaged 2.8 million searches per month on Google, a division of the alphabet, in 2021. This was the 3rd most searched per month out of more than 13,600 cryptocurrencies in existence, followed only by Bitcoin (CRYPTO: BTC) an average of 22 million searches per month, and Ethereum (CRYPTO: ETH) With 6.3 million monthly searches on Google.

Furthermore, the Shiba Inu online community has grown at an amazing pace. The online chatting and sharing community Reddit has seen the number of r/SHIBArmy members grow to 410,000, as of last weekend. Although that’s no more than 20% of Reddit’s volume Dogecoin Community, Dogecoin has a seven-year lead at Shiba Inu.

What this data shows is that social media has been actively used to create buzz around SHIB resulting in significantly higher price points and no less FOMO than some crypto investors.

Green coding scheme flowing into red, with arrows, quotes, and percentages in the background.

Image source: Getty Images.

But there is a problem!

However, there is a benefit to this success.

The thing about the social media hype and community building in the crypto space is that a digital currency can only be held so far before investors start looking for lasting competitive advantages. In the case of the Shiba Inu, it lacks any real differentiators to support its terribly high rating. This means that there is nothing special about Shiba Inu processing times or transaction fees.

In addition to its lack of competitive differentiation, Shiba Inu has other factors working against it. As an example, the broker is keeping time on the leading cryptocurrency trading platform Queen Piece Only 11 days. This compares to average holding times of close to three months for the likes of Bitcoin, Ethereum and Litecoin. Even with the buffering capability, the vast majority of SHIB dealers are looking to take part in it for quick trading and nothing more.

History provides another reason for scammers to worry. Last week, I examined the performance of three payment currencies that enjoyed five- and six-figure percentages in a relatively short time frame. The three cryptocurrencies eventually fell 93% to 99% after hitting their peak. While it is impossible to know when the hype surrounding SHIB will pass, history is quite clear that an epic correction will surely follow.

Currently, Shiba Inu is creating a self hype on social media. But when it comes to payment, it’s not a code that offers game-changing capabilities or has a real-world use case.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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