Too Late To Buy Shiba Inu

Yous can rightfully call it the top dog among cryptocurrencies. No,Shiba Inu (SHIB 3.42%) doesn't claim the highest market cap. That honor goes to Bitcoin. Withal, no other digital coin has come shut to delivering the gains that Shiba Inu has this year.

The meme money has catapulted into the top thirteen cryptocurrencies in the world based on market cap. But is it too tardily to buy Shiba Inu?

Prototype source: Getty Images.

Permit the skilful times roll

Let's kickoff look at the bull example for Shiba Inu. Could the good times keep rolling for the digital token? There are a few reasons to recall so.

The value of a cryptocurrency primarily depends on supply and demand, as is the case for other assets too. Value tends to go up with either limited supply, increased demand, or both.

Shiba Inu'southward supply is intentionally large, with a circulating supply of 549 trillion coins. Nevertheless, it's possible that demand for the token could rise at least in part due to the fervor of the SHIBArmy -- an enthusiastic online community of Shiba Inu supporters.

Need for Shiba Inu could also increase with the upcoming Ethereum 2.0 upgrade in 2022. Shiba Inu runs on the Ethereum blockchain, which is currently much slower and has steeper costs than other blockchains. That volition change with the major upgrade slated for side by side year. The resulting improvements could boost support for Shiba Inu, especially if more merchants begin accepting it as a payment choice.

Some other style that Shiba Inu could take off with soaring demand is inclusion on more trading platforms, especially Robinhood. This would bring the cryptocurrency more into the spotlight for mainstream investors.

And at that place's always the possibility that Shiba Inu could enjoy a surge in demand thanks to Elon Musk. Although the billionaire doesn't personally own the cryptocurrency, his tweets nigh his pet Shiba Inu take helped spark interest in SHIB coins. If Musk decided to buy SHIB and brand it public, the token would probably go to the moon.

The thrill is gone (or presently will be)

On the other manus, in that location are some solid arguments to exist made that the thrill is gone for Shiba Inu, or at least soon will exist. Probably the nigh compelling case that it's too late to purchase the coin is that history isn't on its side.

Accept a look at other cryptocurrencies that have skyrocketed in the by over a short period of fourth dimension. All of them ended up eventually plunging by at least 90%. Shiba Inu could very well suffer a similar fate.

The competition amidst cryptocurrencies for investors is as well fierce. I mentioned earlier that Shiba Inu currently ranks No. 13 based on market cap. But it was even higher on the list. In simply the last couple of weeks, Avalanche has moved past Shiba Inu. Others simply might follow in Avalanche's footsteps.

Aside from a loyal grouping of online supporters, does Shiba Inu have any singled-out competitive advantages? Not really. Many other coins have greater existent-world utility.

Uncertainty

I'd say that the best answer as to whether or not information technology'due south as well late to buy Shiba Inu is merely that it's impossible to know for sure. Perhaps the cryptocurrency will soar with the Ethereum two.0 upgrade, potential inclusion on Robinhood, or a surprise move by Elon Musk. Perhaps Shiba Inu volition tank as other coins attract investors' interest.

Notwithstanding, one thing nosotros can know for certain is that Shiba Inu won't repeat its performance over the last 12 months. If it did, the cryptocurrency's marketplace cap would be bigger than the top 10 largest publicly traded companies combined. That's not going to happen.

My hunch is that Shiba Inu will experience a steep turn down sooner or later on just as the other high-flying cryptocurrencies in the by accept. What I don't know is how presently or how tardily that drib volition be.

Perhaps Shiba Inu volition keep moving higher in the meantime. And maybe I'yard flat-out wrong. Whether or non it's likewise belatedly to buy Shiba Inu, I think at that place are other cryptocurrencies that are more than bonny picks right at present.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

Source: https://www.fool.com/investing/2021/12/06/is-it-too-late-to-buy-shiba-inu/

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