Shiba Inu to the moon, 2021 was historic

While the cryptocurrency space has already produced impressive short-term gains, we’ve never seen anything quite like what the Shiba Inu the famous meme currency has produced in 2021.

According to CoinGecko, investors were given the option to acquire SHIB for $0.0000000073 per token at midnight on January 1, 2021. Over the next 12 months, the SHIB grew six zeros and moved closer to a dollar than where it stood. The current price is $0.000036, as of December 29. In total, we are talking about an increase of about 49,000,000% in one year. Isn’t that’s a massive increase for those who bought in the very beginning?

To put that in perspective, if someone had bought SHIB for $2.05 at midnight on January 1, 2021 they would be a millionaire at the current price of the stock . For comparison, it’s exceptionally rare to see annual gains above 10,000% in the stock market, and it’s just as rare for cryptocurrencies to show seven-digit annual returns.

Analysis of the 49,000,000% increase in SHIB

The most obvious reason why Shiba Inu has remained unstoppable for most of 2021 is its increased visibility. As SHIB has grown in popularity and market capitalization, more and more cryptocurrency exchanges have welcomed it to list it. Having more exchanges to trade SHIB has meant better liquidity and a large base of holders. According to Etherscan, Shiba Inu has 1.1 million individual holders.

The launch of the decentralized exchange ShibaSwap in July was also a key catalyst. In addition to improving the liquidity of a previously non-liquid token, ShibaSwap offers SHIB holders the opportunity to stake their coins and earn passive income. The point is, ShibaSwap has encouraged investors to hold onto their SHIB for a much longer period.

There is also the adoption of SHIBs in the real world. Movie theater chain AMC Entertainment plans to make the Shiba Inu coin an accepted form of online payment in the first quarter, while tech-focused online retailer Newegg Commerce gave SHIBs the green light in December.

In addition, there is a lot of interest in the launch of the Shibarium Level 2 blockchain project, scheduled for 2022, as well as the ongoing development of non-fungible token (NFT) -based games.

No account of Shiba Inu’s success would be complete without alluding to Fear of Missing (FOMO). After seeing bitcoin skyrocket 8,000,000,000% in 11 years, cryptocurrency investors aren’t afraid that digital currencies will hit an unforeseen high. These inelastic buying habits played a central role in removing the six zeros from the price of its tokens.

Is Shiba Inu still good to buy?

But the most relevant question after gaining 49,000,000% in one year must be: Is Shiba Inu still worth buying ? The answer, quite clearly, is no.

While patient investors have been rewarded with life-changing earnings, there are three very good reasons why Shiba Inu should be actively avoided in 2022 (and beyond).

The most important reason why investors should keep their distance is Shiba Inu’s lack of competitive advantages and differentiation .

According to the Coin Marketcap site, more than 16,100 digital currencies are currently listed, and hundreds of new coins are emerging every week. It is increasingly difficult to stand out in the crypto space. Shiba Inu is currently nothing more than an ERC-20 token built on the Ethereum blockchain . It is subject to the same transaction delay and high fees that continually plague the Ethereum network. In other words, other payment coin projects continually surpass Shiba Inu in terms of innovation and give merchants little reason to accept SHIB as a payment method.

The second reason to avoid Shiba Inu in 2022: the lack of utility in the real world. In a sense, you could say that the utility of SHIB has skyrocketed last year; but this is to be expected when only a few dozen merchants willingly accept your coin. The Cryptwerk online business directory shows that only 395 merchants worldwide accept SHIB as a payment method. What’s more, 44 of those 395 traders are nothing but cryptocurrency exchanges. This means that 350 online businesses in a world of over 500 million entrepreneurs accept SHIB as a payment method. It is a fraction of a fraction, and certainly not worth $20 billion in market value .

History provides the third reason why Shiba Inu is not a good investment in 2022. Virtually all of the payout coins that gained 24,000% or more in a short period of time then lost between 93% and 99% within 12 to 26 months of their peak. Shiba Inu has already fallen 60% since its intraday high on Oct 27, and history suggests there’s more to lose after gaining 49,000,000% in just 12 months.

Original link: Your go to Crypto place