Shiba Inu is the latest “meme coin” in the crypto markets, after DogeCoin’s success. So, with Shiba Inu reaching a market valuation of $34.5 Billion, we now have 2 meme coins in the Top 10 cryptocurrencies by market value. Shiba Inu has taken down the USD Coin ($33.17 Billion) from the top 10 cryptos. The valuations of both the coins are still awfully close. And with the extreme volatility in Shiba Inu, it can find itself anywhere in the next few days, or even hours.
It portrays a dog on the face of its token. Ryoshi, a Japanese anonymous person is the founder of this token. He founded the token in the year 2020. And within a year this token has achieved a lot of milestones. It is backed by Ethereum’s Blockchain network. And Ethereum’s co-founder Vitalik Buterin holds 50% of Shiba Inu. And the other half is locked with Uniswap, which helps with the liquidity on the chain.
Shiba Inu has given tremendous returns to its investors. It has surged 800,000% in the last 9 months itself. It is a safe decentralized chain, backed by Ethereum. And the fact that it is backed by Ethereum gives confidence to its investors to put their money in this token. Another fact that has helped this token reach such high valuations is its price. 1 Shiba Inu coin is currently priced at $0.00006671. And therefore investors from all over the world can easily purchase this coin. The reason behind its low price is its huge supply of 1 quadrillion.
How did Shiba Inu surge to such high valuations?
It has barely been a year since the launch of Shiba Inu, and it has reached a valuation of $34.5 Billion. It took Bitcoin more than 3 years to reach a $30 Billion valuation and the same with Ethereum. Although, it depends on the market conditions. And it goes without saying the year 2020 and 2021 has been a boon for cryptos. Because at the beginning of the year 2020 the valuation of the total crypto market was around $200 Billion. But today the Market Value of the total crypto market is around $2.6 Trillion. That is a 1300% rise within a year and a half.
There are several reasons behind such a rise in the overall crypto market valuations. Like excessive liquidity in the market due to covid lockdowns. And also because of the covid induced lockdowns, people had time to explore such investment options like Crypto. All these factors helped the crypto markets to reach such levels. Shiba Inu also had an advantage of its status as a “meme coin“, which brought to the eyes and ears of several investors.
DogeCoin was highly promoted by the biggest crypto influencer, Elon Musk. Which led Doge to reach great valuations as well. Since Doge, the markets received the term “meme coins” and it was well-received with the investors. As these tokens and coins reached higher valuations, they developed their technology and networking accordingly. Shiba Inu started off on its own, with the involvement of Ethereum’s co-founder Vitalik Buterin.
What should Shiba Inu investors do now?
It is a massive dilemma for most Shiba Inu investors, whether they should book their profits at these levels or hold for a longer period of time. And should a person take a new position in Shiba Inu? As of now a person who is holding the Shiba Inu tokens must make a decision based on the need and the purpose of their investment. Because there are both pros and cons with this token. And an investor must decide if he is in it for long, or is it just a swing trade. In crypto, you can never decide the right time to sell. Because no percentage of gains is enough in this market. Say you are earning a 1000% return on your investment and decide to sell. You may be proved wrong, and the coin may jump another 10,000%. So, it isn’t an easy game.
For traders or investors who are thinking of taking new positions at this level. Like I said earlier, the correct, or the right price cannot be predicted with Crypto. But, to be on the safe side, you can avoid volatility. And currently, Shiba Inu is excessively volatile. So, a rational investor or trader should wait for it to cool down, as it may take some retracement moving ahead.
An investment should never be made on impulse. A person should always weigh the pros and cons of their investment. And be very clear behind their reason for going long or short on any trade or any asset.