Should you buy a Shiba Inu while it’s still less than a penny?

Although shiba inu (SHIB 3.69%) Although the token is down about 88% from its all-time high, the cryptocurrency is still up massively. I got a popular meme coin 18,600,000% It hit its lowest point shortly after its launch in 2020.

With Shiba Inu currently trading at around $0.00001 per token, if the coin rises 99,000%, it could reach a price of $0.01 per token. If the cryptocurrency delivers that kind of performance, an investor who purchases $1,000 worth of tokens would see his position grow to a value of over $990,000.

But can Shiba Inu really achieve a price of $0.01 per token?

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barking up the wrong tree

Posting a 99,000% gain may not seem like an impossible proposition considering Shiba Inu has fallen dramatically from its highs and has a track record of posting much larger percentage gains in the past. However, it is important to keep in mind that as numbers increase, relative growth becomes much more difficult to achieve.

Currently, Shiba Inu has a market capitalization of approximately $6.2 billion and a circulating token volume of approximately 589 trillion. At a price of $0.01 per token, the cryptocurrency’s market cap would be $5.89 trillion.

For comparison, Bitcoin’s market capitalization was $1.28 trillion at its peak value. At a price of $0.01 per token, Shiba Inu’s market capitalization would be 4.6 times the peak value of Bitcoin, the token that has always had the largest market capitalization in the cryptocurrency world.

Achieving a price of one penny per token is a tall order for a Shiba Inu and requires nearly impossible performance. However, there is a possibility that the token will go higher this year and beyond.

What can send your Shiba Inu higher in 2024?

Shiba Inu plummeted from its peak and fell down the cryptocurrency market capitalization rankings, but the fact that its price did not evaporate as the cryptocurrency winter of 2022 deepens suggests that the cryptocurrency has some staying power. If last year’s rally in the broader cryptocurrency market continues into 2024, it’s reasonable to expect Shiba Inus to post some solid upside. There is at least one reason to think that might happen.

Many investors and analysts now expect the Federal Reserve to begin cutting interest rates in 2024. That would make it cheaper to borrow money and become a major catalyst for cryptocurrencies, growth stocks and other speculative investments.

Adoption of Shiba Inu tokens may also increase with projects including Shibarium Layer-2 solutions for transaction processing and SHIB: The Metaverse, a virtual world where participants can purchase properties or play games. As of now, it seems unlikely that these projects will provide a positive price catalyst for the token in 2024, but they have the potential to continue exceeding expectations and fueling bullish sentiment for the cryptocurrency.

Is a Shiba Inu a wise purchase?

Shiba Inu is a cryptocurrency that operates on: Ethereum Blockchain. There isn’t much to distinguish it from many other cryptocurrencies except that it is a speculative asset and is rarely used as a currency. There are already over 23,000 cryptocurrencies for investors to choose from, and the ease of launching new tokens means that new digital assets are always joining the fray.

These days, it’s fairly easy to create a cryptocurrency that functions solely as a currency or speculative asset. Attracting a vibrant community and building a constantly evolving network is much more difficult. There are signs that the Shiba Inu team is working to support the long-term viability of the token, but its status as a well-known meme coin will probably remain its biggest competitive advantage for the foreseeable future.

can’t deny it shiba inu But I generally think that cryptocurrencies that are tied to useful applications have a better chance of success in the long term. This does not mean that the coin cannot yield significant profits at current price levels, but investors should understand that this is a highly speculative and high-risk investment.