The cryptocurrency market has exploded over the past year, but no cryptocurrency has had such a wild ride as Shiba Inu (CRYPTO: SHIB). Its price has risen by more than 364,008% in the past year, despite two substantial declines.
Although the Shiba Inu has seen a decline from its all-time high in late October, it has recently made a strong comeback, rising nearly 44% in the past two weeks.
While it might be tempting to jump on the Shiba Inu bandwagon, it’s still a risky investment. If there is a reason you can consider to buy now, there are also good reasons to avoid it.
Pro: Why might the Shiba Inu be the right investment for you?
Shiba Inu can be risky, but its growth is hard to argue with. Read also: Crypto Cardano (ADA): Promising signs, the cryptocurrency market has an upward trend.. Cryptocurrency developers are also working to give Shiba Inu more real-world utility, which could help it grow in popularity.
For example, Shiba Inu will venture into the metaverse with his new project, Shiberse. Although little is known about the upcoming project, the metaverse is one of the hottest investment topics right now. Expansion into the metaverse could help Shiba Inu stay on the radar.
Additionally, developers are working on Shibarium, a blockchain upgrade that could lead to a reduction in transaction fees across the entire Shiba ecosystem. While the update isn’t expected before the end of the year, it could help make Shiba Inu a crypto– more affordable and more accessible money.
Of course, these updates and extensions does not warrant that Shiba Inu it will continue to develop. But if you have the money to spend and are willing to take more risks for a chance to earn more, Shiba Inu may be the investment for you.
The cons: because for now it is better to avoid the Shiba Inu
Although Shiba Inu has made more and more progress in becoming a stronger cryptocurrency, it still struggles to live up to its competitors. See also: Ethereum Aims $ 3,500 After ETH Price Bounced 40%.
Shiba Inu is, in essence, a payment currency. It is used as a form of exchange and its blockchain does not allow for decentralized applications (dApps) such as non-fungible token markets (NFT) or decentralized finance projects (DeFi).
This makes it difficult to compete with larger networks like Ethereum (CRYPTO: ETH), Solana and Cardano, which allow all dApps. Considering that NFT and DeFi are some of the fastest growing markets in the crypto space, this puts Shiba Inu at a disadvantage.
Its main use is payment, its main competitor is bitcoin (CRYPTO: BTC). Although Shiba Inu has gained substantial market share over the past year, it is nowhere near Bitcoin. Bitcoin has a market cap of over $ 800 billion, while Shiba Inu currently stands at around $ 16 billion.
If Shiba Inu wants to become a true competitor in the cryptocurrency market, he will need it more usefulness. While it’s a step in the right direction, it may not be enough to keep up with the strongest cryptocurrencies.
Its growth is mainly based on hype
Perhaps the biggest risk of investing in the Shiba Inu is that it has been heavily advertised in the past. It was originally created as a Dogecoin parody and only began to develop uses in the real world after it grew enormously. Read also: Cryptocurrency Price Prediction: Price Analysis from Polygon, Axie Infinity and Crypto.com.
This is in stark contrast to cryptocurrencies like Bitcoin and Ethereum, which were created to solve specific problems. Shiba Inu rose to fame during the cryptocurrency craze last year and its meteoric growth was mainly due to retail investors buying in bulk to raise the price, only to sell shortly after and make a quick profit.
Another concern with Shiba Inu is that only 10 accounts control nearly 65% of all existing coins. And over 81% of all coins are held by just 100 accounts. If one of these large accounts sells their coins, this could lead to huge waves of volatility.
While the Shiba Inu has advantages, it is not suitable for everyone. It’s one of the riskiest cryptocurrencies, so make sure you know what you’re getting into if you decide to buy. With a little research and preparation, you can determine if the Shiba Inu is the right choice for you.