Since August 2020, the Ethereum-based cryptocurrency token Shiba Inu has attracted nearly 715,000 holders. Now the market capitalization of Shiba Inu cryptocurrency has reached $10 billion. These numbers have raised the cryptocurrency to the 20th step of the biggest cryptocurrency ladder.
However, experienced cryptocurrency investors prefer trading with the proven crypto coins that have been circulating on the crypto market for a long time. These are famous Bitcoin, Ethereum, etc. Of course, relying on proven cryptocurrencies is safe, but investing in new crypto can bring you an even bigger profit. Especially if it is a new cryptocurrency that has succeeded in the market so quickly.
What is Shiba Inu Token?
Shiba Inu is run by the Ethereum blockchain. The crypto coin was named after a popular dog breed bred in Japan. It was created to be honestly used for settlements, purchases, and other money frauds. There were 1 quadrillion Shiba Inu tokens issued, 500 trillion of which were given to the founder of Ethereum. He donated the tenth part of the acquired tokens to the Indian Coronavirus Pandemic Fund.
For the first time, Shiba Inu crossed the all-time high on October 24, gaining a price to the level of $0.00003940. If someone bought this cryptocurrency at the beginning of the year for $1,000, then at that time the tokens would be worth $460 million. Pretty good investment, but that's not all. Just three days later, on October 27, the Shiba Inu token renewed its all-time high at $0.000053, its capitalization reaching $27 billion, according to CoinGecko. Over the past day, the price of the token has grown by 30%, and over the past week by 93%.
What Provides Rapid Development of Shiba Inu Crypto Coins?
Since January 2021, the value of the Shiba Inu coin has risen by 27,000,000%, which is an impressive result.
Influencers often support it on social media and contribute to its development.
Elon Musk posted his Shiba dog, which led to an increase in the price of cryptocurrencies. Musk began promoting rare tokens in early summer when he tweeted that he intended to buy a dog of this breed. After the announcement, the value of the cryptocurrency increased by 17%. In addition, the increase in the value of the token contributed to its creation in the listing of the cryptocurrency Binance.
Note that the largest owner of Shiba Inu was the developer of cryptocurrency Ethereum Vitalik Buterin. As of the end of May, 505 trillion SHIB was in his public wallet - more than 50% of the planned quadrillion coins. In the past, Elon Musk has repeatedly mentioned various cryptocurrencies that are not widely used.
The negative response of the detective of the banking holding JPMorgan Jamie Dimon about Bitcoin also negatively affected the growth of SHIB tokens. While after Elon Musk's Twitter post, the value of the coins increased, the project fell by 600% a few days later due to Jamie Dimon's response. This is because altcoins are connected with Bitcoins in this regard, and after the fall of Bitcoin, they follow it and also fall.
Is it Safe to Buy Shiba Inu Crypto Currency?
Almost all cryptocurrency is controlled by whales, which can trigger a price drop by dropping tokens. 80% of SHIB coins are held in 100 top holders. That is why some whales can control the price. But you can still avoid dumping and make a profit. All you need is to buy dips and do not FOMO.
There was almost a 5 months period when the price of Shiba Inu did not change because the general interest died down. This is another possible problem with cryptocurrency. That is, the coin is dependent on large influencers, who can control its popularity in some respect, such as Elon Musk.
SHIB Price Predictions
Almost a million wallets have the Shiba Inu token, which means that more and more traders are interested in cryptocurrency. That is why it is predicted that the price will increase for a long period of time. Websites that specialize in cryptocurrency analysis predict that the Shiba Inu coin will cost $0.00027522 by the end of 2021 and will go up to $0.00031705 in 2022. The price of the coin will not rise to $ 1 very soon.
Although this currency is proven, it's risky, so do not rush to invest in Shibu coins without preparation. The advantage of cryptocurrency is that it is quite cheap and you do not lose a lot of money.