Despite the recent sell-off, Shiba Inu is still the 13th most valuable coin, with a market value of nearly $19 billion. The story is impressive in its own right, but it becomes the stuff of legend when you dig a little deeper. The token price has doubled since hitting a low in November 2020, meaning a single $17 investment last year would be worth $10 million today.
Only a few assets have generated so much wealth in so little time. Many investors are hoping for a repeat performance after Shiba Inu fell from its high. Some supporters of the Shiba are forecasting a token price of $1 by the year 2025. It would take another 2,965,500% upside from its current price of $0.00003372 to return an annual return of 1,212% over the next four years, which is relatively mild compared to its historical performance.
Is it possible that Shiba Inu could hit $1? Let's get into it.
The image is from the same source.
What is the value of Shiba Inu?
Ryoshi created a mascot called Shiba Inu in August 2020. Ryoshi attributes the nickname of "the Doge coin killer" to the fact that Shiba Inu has more publicity and utility.
Shiba Inu is a type of smart contract built on the ethereum platform. It is possible that the token is compatible with the Defi applications, which would make it more functional than Dogecoin.
Compatibility hasn't translated into utility. Shiba Inu is not a widely accepted form of payment, nor is it used in popular DeFi protocols. There is very little you can do with the token, and the price of Shiba Inu can be attributed to two things: aggressive marketing on social media and brilliant branding.
With the rise of Dogecoin still fresh in the minds of investors, a name like "Shiba Inu" was sure to turn heads. The hype generated on social media platforms took care of the rest.
Is $1 realistic?
Popularity is not a good long-term investment thesis without something more substantial to back it up. In the short term, Shiba Inu is a perfect example of how powerful popularity can be. Some investors want to see it cross the $1 threshold in order to achieve what Dogecoin never did.
That's not possible. The market value of Shiba Inu would reach $550 trillion with a $1 price tag. The global gross domestic product is expected to reach $94 trillion in 2021, and $116 trillion in 25 years. It would be worth several times more than the combined output of every economy in the world if Shiba Inu reached $1.
I think investors should avoid this coin. There are better places to put your money if you're interested in digital assets.
