Your average shiba inu may just be another adorable canine companion. However, the not-so-average Shiba Inu is a lot more serious than that. Named after the cute Japanese dog breed, Shiba Inu is a rising star in cryptocurrency. Supported by a community of supporters, the “Shib Army,” SHIB is nonetheless still considered a speculative investment. Many are still hoping its price will rise.
Can crypto investors take Shiba Inu meme coin potential seriously? How likely is a Shiba Inu investment to be profitable this year? And the question on many people’s minds: Is a Shiba Inu investment still worth it? Let’s explore these topics in this article.
Introduction to Shiba Inu
Shiba Inu was born from an anonymous creator (only known as “Ryoshi”) in August 2020. Built on the Ethereum blockchain, it’s part of a decentralized network and can be traded or used just like other cryptocurrencies. However, whereas Bitcoin has lofty designs to be “digital gold,” Shiba Inu has a lot more chill vibes—it focuses on the fun and its community.
This token’s value skyrocketed thanks to the involvement of its loyal community of supporters, who call themselves the “Shib Army.” The Shib Army spread the word about SHIB by creating viral content and promoting the token on social media platforms like Twitter, Reddit, and Discord.
Furthermore, the Shib Army also engaged in campaigns to draw attention to SHIB from public figures. While not officially endorsed by celebrities, at one point, when Elon Musk referenced Shiba Inu, the token’s price spiked.
SHIB also capitalized on memecoin culture, just like Dogecoin. While Shiba Inu branded itself as “The Dogecoin Killer” (because it wanted to surpass Dogecoin’s popularity), both tokens share a playful and meme-centric approach to cryptocurrency. Once again, the Shib Army played a role in this, sharing memes jokes, and content that resonated with the online audience.
This may have resulted in some people dismissing Shiba Inu as a joke. However, there’s still a large community out there who view it as an opportunity.
Market Position and Performance in 2024
In 2024, Shiba Inu experienced great fluctuations. On November 21, 2024, the token’s market cap was approximately $14.53 billion. This is 12th in the ranking of the largest cryptos on the market. Since 2022, SHIB maintained the same level of pricing, which lasted through 2024, ranging between $0.00001 and $0.00002.
The all-time high for SHIB’s price was $0.00008845 (in October 2021) and was never repeated. In November 2024, it even traded around $0.0000247—around 72% lower than the peak. Recently, SHIB’s price declined again, influenced by broader crypto market trends and macroeconomic factors.
Looking at crypto investment 2024 trends, analysts have speculated on the future Shiba Inu value and suggest that if Bitcoin’s market capitalization were to match that of gold, SHIB could experience massive appreciation. However, these projects remain highly speculative and depend on numerous market variables despite the dedicated community and technological advancements SHIB has made.
Shiba Inu’s Tokenomics and Utility Roles
Shiba Inu’s tokenomics are unique and highly crucial in its ecosystem. Initially, Shiba Inu launched with a supply of 1 quadrillion tokens. In a marketing stunt, a large portion of these tokens was sent to Ethereum co-founder Vitalik Buterin, who later burned 90% of them. The rest was donated to charity. This creates scarcity, which notably reduced SHIB’s circulating supply, making the remaining tokens skyrocketing in value.
Over the years, Shiba Inu has developed a thriving ecosystem that consists of three main tokens:
- SHIB: The primary token, used for transactions and as a store of value.
- LEASH: A limited-supply token designed to provide exclusivity and higher rewards.
- BONE: A governance token that allows holders to vote on decisions within the Shiba Inu ecosystem.
These tokens shape the backbone of Shiba Inu’s financial system, serving distinct purposes and enhancing the ecosystem’s functionality.
Shiba Inu’s current position has strayed far from a mere meme coin. It’s now become a functional player in DeFi, highlighting its potential for innovation within the crypto space. It has well-designed tokenomics, which will make it more than just a passing trend, especially if paired with the growing utility in DeFi and beyond.
Role in DeFi
In terms of DeFi (decentralized finance), a fast-growing area in crypto aiming to provide services like lending, borrowing, and trading without relying on traditional banks or intermediaries, Shiba Inu has positioned itself as a key player. The following developments allowed Shiba Inu to grow in DeFi.
ShibaSwap
As Shiba Inu’s decentralized exchange (DEX), users can trade cryptocurrencies directly without a centralized platform. ShibaSwap allows them to stake SHIB, LEASH, or BONE to earn rewards. SHIB’s DEX also provides liquidity to the platform and earns a share of transaction fees. It gives crypto enthusiasts a secure space to swap tokens in a decentralized manner.
ShibaSwap enhances the utility of the Shiba Inu tokens by offering these services. It’s probably the most integral part of DeFi operations within the ecosystem.
Staking and rewards
Staking involves locking up tokens to support the network’s operations in exchange for rewards. Shiba Inu holders can stake their tokens on ShibaSwap to earn BONE or other incentives. This provides a way to generate passive income. It also encourages users to hold onto their tokens, reducing market supply.
Token burning
Shiba Inu often employs a burn mechanism, which involves removing tokens from circulation. The aim is to create scarcity for the sake of increasing value. For example, a portion of transaction fees on ShibaSwap is used to buy and burn SHIB tokens. Thus, the token’s long-term value is supported.
Role Beyond DeFi
DeFi may be a vital part of Shiba Inu’s ecosystem, but its utility goes beyond just financial services. Here are other parts of Shiba Inu’s ecosystem that may support Shiba Inu investment.
- Shibarium: Shiba Inu’s own blockchain aims to reduce transaction costs and increase scalability. Once launched, this could further explain the use cases of SHIB and its companion tokens.
- NFT marketplace: Shiba Inu has ventured into non-fungible tokens (NFTs) with its own marketplace. Here, users can buy, sell, and trade digital art using SHIB tokens, opening up another avenue for token utility.
- Community governance: The Shiba Inu community can vote on proposals with the BONE token, influencing the project’s future direction.
Recent Community and Developer Update
The biggest update from Shiba Inu’s community is its planned transition to full community governance. SHIB’s lead developers Shytoshi Kusama and Kaal Dhairya have announced this move to enhance decentralization and grant the community greater influence over the network’s future. Announced back in August 2024, this plan is expected to be completed by the end of the year.
Also at the end of the year, the Shiba Inu community is preparing for a notable upgrade. This enhancement is expected to boost decentralization, empowering users with expanded control and participation in network governance.
Meanwhile, in mid-December, the Shiba Inu team issued a warning about scams involving SHIFU purchases. The Shibarium Trustwatch advised users to avoid sharing personal information and verify details through official channels. This underscores the community’s commitment to security.
2024 has been a transformative year for Shiba Inu. The shift towards full community governance and proactive security measures reflect the token’s maturation. It also highlights how strong the community is in its unwavering support.
Shiba Inu Investment Potential: Risk, Rewards, and Expert Opinions
No cryptocurrency investment is 100% safe. However, there are plenty of reasons for crypto enthusiasts to invest in Shiba Inu, such as:
- Growth potential: SHIB’s low price per token allows investors to purchase large quantities for relatively cheap prices. If the token’s value increases, it may lead to remarkable returns.
- Expanding ecosystem: SHIB has grown to be more than just tokens. With ShibaSwap and the development of a Shibarium blockchain, the ecosystem offers multiple ways to engage and profit.
- DeFi integration: Through ShibaSwap and staking features, Shiba Inu offers investors the opportunity to earn rewards beyond just price appreciation.
- Strong community support: The SHIB Army’s dedication to the toke can create strong market momentum, especially now with the planned full control of governance by the community.
- Burn mechanism: This ongoing process has been a striking point of interest for long-term holders.
Still, Shiba Inu carries the risk of being highly volatile. Its swings are influenced by market sentiment, speculative trading, and broader cryptocurrency trends. This unstability can lead to huge losses. Furthermore, despite its progress, Shiba Inu remains speculative. Its value depends heavily on hype, community support, and speculative interest, instead of intrinsic utility or widespread adoption.
SHIB also faces competition from other cryptocurrencies. The established ones like Bitcoin and Ethereum are considered safer investments, while newer tokens keep popping up, targeting similar audiences and functionalities as SHIB.
Many experts still advise caution over sustainability. They warn about the risks of investing in a token that started as a meme. While short-term gains are possible, long-term sustainability depends on meaningful adoption and use cases. This is where experts emphasize the importance of differentiating between hype and real utility. They advise potential investors to look beyond community enthusiasm and consider the token’s actual use cases.
However, for some other experts, Shiba Inu’s ventures into DeFi and its development of the Shibarium blockchain show a solid foundation for sustainable growth. They suggest paying closer attention to these developments.
Conclusion: Is Shiba Inu Still a Worthy Investment?
Shiba Inu is still a polarizing investment in 2024. It offers opportunities for high rewards, driven by its ecosystem, army of loyalists, and ongoing developments. However, it also carries significant risks due to its speculative nature, unpredictability, and over-reliance on hype over inherent utility.
SHIB may be exciting, if risky, for short-term investors. Long-term investors, though, should approach Shiba Inu with caution. Carefully evaluate its progress and assess its utility and adoption within the cryptocurrency space.
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Tamar Hela is a certified copywriter and SEO expert with over 17 years of experience. She specializes in crafting engaging cryptocurrency and finance content. Visit her LinkedIn profile at this link: https://www.linkedin.com/in/tamarhela/