Shiba Inu pricing has been disappointing lately. It is down over 75% from its all-time high, giving it a market capitalization of over $12 billion. As a result, it is the 15th largest cryptocurrency in the world. A common question among traders is whether the Shiba Inu is a good investment. In this article, we will explain why we believe SHIB is a good investment. Read more about how to buy Shiba Inu.
SHIB is an ERC-20 token
Shiba Inu is known for its association with Dogecoin. In fact, the coin was created in an attempt to become a better alternative to Dogecoin. However, the two currencies are radically different. On the one hand, DOGE is built from the ground up using proof-of-work technology. Its foundation is similar to 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 to build on Ethereum. As a result, the Shiba Inu does not have its underlying technology, meaning it uses the one provided by Ethereum. This is good considering that Ethereum is now in an upgrade period where its developers are transitioning from a proof-of-work platform to a proof-of-stake. The merger of Beacon Chain and current Ethereum will take place in the third quarter of 2022. Therefore, this merger will make Shiba Inu faster and easier to use.
Shiba Inu is not just a meme coin
One of the main concerns many people have about the Shiba Inu is that it is a net with no utility value. While this was the case when it started, things have changed dramatically in the last few months. Its developers have increased its usefulness as they seek 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 makes it possible for people to exchange tokens, buy and sell non-fungible tokens, and even invest for returns. ShibaSwap is a relatively young product that has a Total Locked Value (TVL) of over $70 million. So there is a likelihood that the price of Shiba Inu will continue to grow as this ecosystem grows. There is a possibility that it will grow due to the popularity of Shiba Inu among traders. Therefore, we believe that Dogecoin and Shiba Inu have a similar relationship as Ethereum and Binance. While Bitcoin is primarily used for payments, Ethereum has additional utility value.
Is it possible to stake Shiba Inu
Staking is a process where an investor can earn a return by simply depositing their coins on an exchange. Because of how it’s built, it’s not possible to stake Dogecoin. But it is possible to earn a return by staking Shiba Inu. One of the easiest methods to get these returns is to use Shiba Swap. To do this, just go to the website and select bury. The idea is that by burying your SHIB, you earn proportionately to your contribution to the pool. After betting, you will receive xSHIB which represents your share of the return. These rewards are then distributed every week. At the time of writing, the APY for Shiba Inu staking is 5.50%, which is a reasonable amount. Read more about the best cryptocurrency exchanges.
Shiba Inu is known for its comebacks
Another reason we believe Shiba Inu is a good investment is that the coin is known for its returns. When the Shiba Inu was started, its price initially jumped to a high of $0.000040. At the time, most people equated it with Dogecoin, which was having its best time ever. However, these gains were short-lived as the coin dropped over 90% and hit an all-time low of $0.0000055. At the time, most people, myself included, believed that the coin had collapsed. That changed in October 2021 when the coin rallied to an all-time high of $0.000090. This means that the coin can always come back. History is full of coins that dropped sharply and then came back. For example, in 2020, Bitcoin dropped from over $13,000 to $3,500 when the Covid-19 pandemic began. While most people expected its price to continue falling, it rebounded and hit an all-time high of nearly $70,000.
The Shiba Inu accident is not isolated
Also, Shiba Inu are a good investment because their current downfall is not an isolated case. On the one hand, most currencies have been in a downtrend for months, due to concerns about the Federal Reserve. Notably, other assets such as stocks also fell sharply, with the Nasdaq 100 down more than 10% from its year-to-date high. So that’s a good thing because, historically, sharp downtrends don’t last forever. I hope Shiba Inu and other coins will bounce back when the stock sell-off is over. In addition, SHIB has an excellent risk-reward ratio due to the low cost at which it is traded.