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Is Shiba Inu a Good Investment? 5 reasons that speak for it



 Shiba Inu's price has been disappointing lately. It's down more than 75% from its all-time high, giving it a market cap of more than $12 billion. This makes it the 15th largest cryptocurrency in the world. A common question among traders is whether it is wise to invest in Shiba Inu. In this article we explain why we believe SHIB is actually a good investment.


SHIB is an ERC-20 token

Shiba Inu is known for its association with Dogecoin. In fact, the coin was created to become a better alternative to Dogecoin. However, the two coins are radically different. For one, DOGE is built from scratch using proof-of-work technology. Its foundation is similar to that of Bitcoin, which means anyone can mine it.


However, Shiba Inu is an Ethereum Request for Comments (ERC-20) token. An ERC is the smart contract standard for building on top of Ethereum. As a result, Shiba Inu does not have its own underlying technology, meaning it uses technology provided by Ethereum.


This is a good thing considering Ethereum is now in an upgrade phase where its developers are transitioning it from a proof-of-work to a proof-of-stake platform. The merge (fusion) of the Beacon Chain and the current Ethereum will take place in the third quarter of 2022. Therefore, this merge will also make Shiba Inu faster and easier to use.


Shiba Inu is not just a meme coin

One of the biggest concerns many people have about the Shiba Inu is that it is a network of no utility. While that was the case at the beginning, things have changed dramatically over the past few months. Its developers have increased its utility as they strive to make it a more useful platform.


One of the most useful products is known as ShibaSwap. This is a decentralized finance (DeFi) platform that allows people to exchange tokens, buy and sell non-fungible tokens, and even invest to earn returns.


ShibaSwap is a relatively young product with a total locked value (TVL) of over USD 70 million. Therefore, there is a likelihood that the Shiba Inu price will continue to rise as this ecosystem grows. There is also a possibility that it will grow due to the popularity of Shiba Inu with retailers.


Therefore, we believe that Dogecoin and Shiba Inu have a similar relationship as Ethereum and Bitcoin. While Bitcoin is primarily used for payments, Ethereum has an additional utility.


It is possible to stake Shiba Inu

Staking is a process whereby an investor can earn a return simply by depositing their coins on an exchange. Due to its construction, it is not possible to stake Dogecoin. However, it is entirely possible to make a return staking Shiba Inu.


One of the easiest ways to get those returns is by using Shiba Swap. To do this, simply visit the website and then select “Bury”. The idea is that if you "bury" your SHIB, you'll earn in proportion to your contribution to the pool.


After wagering, you will receive xSHIB, which represents your share of the return. These rewards are then distributed each week. At the time of writing, the APY for staking Shiba Inu is 5.50%, which is a reasonable amount.


Shiba Inu is known for his comebacks

Another reason we think Shiba Inu is a good investment is that the coin is known for making comebacks. When Shiba Inu was launched, its price initially jumped to a high of $0.000040. Back then, most people equated it with Dogecoin, which was then at its prime.


However, these gains were short-lived as the coin plunged more than 90% to hit an all-time low of $0.0000055. At the time, most people, including me, believed the coin had collapsed. That changed in October 2021 when the coin surged to an all-time high of $0.000090. This has shown that the coin has the skills to keep making a comeback.


History is full of coins that have fallen sharply and then bounced back. For example, Bitcoin plummeted from over $13,000 to $3,500 in 2020 when the Covid-19 pandemic began. While most people expected the price to continue falling, it rallied to hit an all-time high near $70,000.


Shiba Inu crash is not an isolated incident

Additionally, Shiba Inu is a good investment as his recent crash is not an isolated one. For one thing, most coins have been in a downtrend for months amid concerns about the restrictive Federal Reserve . Notably, other assets such as stocks have also fallen sharply, with the Nasdaq 100 down more than 10% from its YTD high.


So this is a good thing because historically, strong downtrends don't last forever. I expect Shiba Inu and other coins to rally when the sell-off in stocks ends. Also, SHIB has an excellent risk/reward ratio because it is offered so cheaply.

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