This speculative digital asset is riding renewed investor optimism.
As of April 5, the Nasdaq Composite Index has soared 43% in 2024. This performance has been lifted by strong gains for dominant tech companies.
But the cryptocurrency market has said, "Not so fast." From the beginning of last year to today, the digital asset industry's entire value has more than tripled. Investors are flocking to the riskiest asset class in dramatic fashion.
It's no surprise that some of the most speculative tokens are experiencing strong momentum, particularly more recently. For example, Shiba Inu (SHIB -3.47%) has skyrocketed roughly 150% in the past few weeks. Maybe there's growing interest that more spot ETFs will be approved following Bitcoin.
Even after its run-up, perhaps some daring investors are ready to buy Shiba Inu on the dip while it's still significantly below $0.01. Is that a smart idea?
What's the point?
At The Motley Fool, we urge investors to adopt a long-term mentality. That means thinking in terms of the next five years, and ideally more. This makes worrying about the next few months or quarters seem silly.
While it's important to think this way when it comes to stocks, it's also critical to adopt this mindset with cryptocurrencies. It's so easy to get caught up in short-term price movements, especially when they're as wild as what can happen with digital tokens. But what matters at the end of the day are the fundamentals.
With this mental framework, investors looking to buy Shiba Inu should start to ask if there's really any point to this cryptocurrency. To be fair, I'll give the founders credit for creating a $16 billion blockchain network in less than four years. Given that the crypto industry values having a strong community of supporters, viewed in this light, Shiba Inu might be a smashing success for some.
But going back to that long-term mindset, investors need to wonder where Shiba Inu could be a decade from now. I'm a firm believer that for any cryptocurrency to survive, it will eventually need to figure out how to raise utility and gain broad adoption.
By being built on top of the Ethereum network, Shiba Inu was created differently from its inspiration, Dogecoin, which is its own blockchain. This makes Shiba Inu's native token, SHIB, compatible with the vast ecosystem of Ethereum decentralized applications out there.
However, I suspect Shiba Inu isn't used much for its intended purpose, like to purchase non-fungible tokens, use decentralized finance protocols, or buy virtual land in the metaverse. It doesn't even crack the top 100 cryptocurrencies when it comes to developer activity. That doesn't bode well for its future.
Setting expectations
Shiba Inu currently trades 70% below its peak price. The all-time high was during the raging bull market of 2021. I'm not sure this type of run will happen again.
Warren Buffett once said that investors should be comfortable buying a stock if the market closed for the next five years. Applying this time of thinking to cryptocurrencies might seem crazy given how volatile the industry is and how much change happens, but it's a valuable perspective to have. I don't believe anyone could view an investment in Shiba Inu in this light. Five years from now, there's a significant probability that its value will approach zero.
The only reason to buy it is if you think you can correctly time the market, with the hope of buying at the lows and selling after massive bull runs. But no one can do this successfully on a consistent basis.
Even with Shiba Inu trading well below a penny, it's best not to park your hard-earned savings in it.
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
FAQs
Anders Bylund has positions in Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, and XRP.
What if you invested $1,000 in Shiba Inu? ›
If you had invested $1,000 in Shiba Inu crypto on Aug. 2, 2020, and sold it on Apr. 27, 2024, you would've reaped a profit of more than $24 million. In fact, a mere $10 would have given you a profit of over $240,000.
Will Shiba Inu reach $1 cent by 2025? ›
It would be extremely difficult for Shiba Inu to reach 1 cent. Even during SHIB's all-time high in October 2021, when the token was trading at $0.0000881, SHIB would have needed to increase in price by 113x to hit $0.01.
Is SHIB still worth buying? ›
Recent reports suggest Shiba Inu (SHIB) burned 146 million tokens to maintain its top-ten spot. Despite falling from its high, Shiba Inu is still up since its inception, and wider crypto markets could push Shiba Inu higher in 2024. At the moment, it's unlikely to cross $0.01.
Which crypto will explode in 2024? ›
Top 7 Cryptos to Explode in 2024: BlockDAG, Bitcoin, ADA, XRP, AVAX, MATIC and TRX. The crypto market is set for a transformative phase, with BlockDAG at the forefront, having raised a significant $23.4 million in its latest presale.
Which coin will reach $1 in 2024? ›
Exploring the potential cryptocurrencies like Pikamoon, Dogecoin, Book of Meme, Rosewifhat, and Zilliqa as contenders to hit the $1 milestone. Key factors like utility, viral potential, and clear roadmaps suggest their potential amidst market sentiment and unique tokenomics.
How many shares of Shiba Do I need to be a millionaire? ›
10M SHIB might be enough to make you a millionaire in 2025, or maybe even sooner. The circulating supply of $SHIB is high right now, but it's decreasing more each hour as holders are “burning” it (sending SHIB to a dead wallet). Look up Shibburn for public burn records. Shib: The Metaverse is on the way.
Will Shiba burn trillions of coins? ›
Can Shiba Inu burn trillions of coins? In 2022, a Shiba Inu community member, who goes by the pseudonym 'Queenie,' projected that the Shibarium burn portal could incinerate a whopping 111 trillion SHIB tokens annually.
Will Shiba Inu coin make me a millionaire? ›
But as things stand today, Shiba Inu is 89% below its peak price. Nonetheless, it has still soared 969,000% since its public launch in August 2020. There's a possibility that this speculative meme token will make you a millionaire. For investors who have watched from the sidelines, this is probably what the hope is.
Can Shiba Inu reach .005 cents? ›
The forecast suggests that reaching the much-discussed $0.05 (5 cents) may be more achievable than previously imagined. While the time frame for this ambitious goal is set to 2040, Telegaon's forecast instills a new excitement in the Shiba Inu community.
Therefore, SHIB reaching 10 Cents, not just in the near term, but also in the long term remains doubtful. In conclusion, firstly, the circulating supply has to be reduced by nearly 90%, and secondly, the market cap needs to increase tenfold for Shiba Inu to reach the 10 Cents range.
What's the highest Shiba Inu can go? ›
According to CryptoNewZ, the Shiba Inu token might have achieved the utility and adoption it promises by 2030, with a maximum predicted value of $0.0001 and a minimum predicted value $0.000033.
Should I hold a Shiba Inu long term? ›
Key Points. An active community makes it fun to invest in Shiba Inu. However, Shiba Inu's volatility means it's inappropriate for large positions. It's fine to buy a few Shiba Inu tokens as a speculative rising-tide play on Bitcoin's upside potential.
Is SHIB a risky investment? ›
Shiba INU (SHIB) is a high-risk investment. However, earlier deemed as a “meme coin” with little utility other than trading, SHIB is increasing its applications. It has its own Metaverse called Shib Metaverse. The lead developer of SHIB, Kaal Dhariya has also announced upcoming ERC404 NFTs and fungible tokens.
Can bonk reach 1 cent? ›
BONK Price Prediction: Can Bonk Reach 1 Cent? It is highly unlikely, though not impossible, that BONK will reach the 1-cent mark. If BONK were to be priced at $0.01, its market capitalization would be approximately $652 billion, roughly half of Bitcoin's market cap.
What is the most promising cryptocurrency to buy now? ›
What Crypto to Buy Now?
- Bitcoin (BTC) – The Most Popular Cryptocurrency in the World.
- Ethereum (ETH) – The Most Popular Platform to Create Web3 dApps.
- Solana (SOL) – A Faster, Cheaper, and More Secure Ecosystem.
- Ripple (XRP) – A Top Crypto That Aims To Replace The SWIFT System.
Most Promising Cryptocurrencies for 2024
- Sponge V2 – Promising new Sponge upgrade with 170% APY staking. ...
- Bitcoin Minetrix – Innovative stake-to-mine Bitcoin model with over $10M raised. ...
- eTukTuk – Sustainable EV transport blockchain that raised over $820K. ...
- 5th Scape – Offers VR gaming integrated with Ethereum.
Best Altcoins for Next Bull Run
| Coin | Market Capitalization | Current Price |
|---|
| Ethereum (ETH) | $352.50 billion | $2987.52 |
| Solana (SOL) | $59.55 billion | $143.65 |
| Dogecoin (DOGE) | $0.1294 | $0.147 |
| Cosmos (ATOM-USD) | $8.94 billion | $9.02 |
3 more rows7 days ago
Smog Token ($SMOG) is one of the trending newly emerging meme coins to buy now. It's touted as one of the next big cryptocurrencies for 2024 due to its hugely hyped incoming airdrop, anticipated to be the biggest airdrop in the history of the Solana network.
