Can Shiba Inu Reach 1 Cent?

Contributor, Benzinga

Want to get in on the action? You can now purchase Shiba Inu tokens on Robinhood!

Shiba Inu is the breed of the infamous Doge. Shiba Inus are cute, lovable dogs that keep getting tangled up in cryptocurrency finance. Shiba Inu has been quiet lately, but all of that might change now that Robinhood has listed it.

What is Shiba Inu?

Shiba Inu (SHIB) is an ERC-20 token, meaning it operates on the Ethereum blockchain. It was launched in August 2020 by the anonymous Ryoshi. Half of the initial supply was gifted to Ethereum creator, Vitalik Buterin. However, Buterin sold his stake early on and donated it to charity. If he held his tokens, they would currently be worth over $10 billion.

Shiba Inu is based off of Dogecoin (DOGE.) A Shiba Inu is a breed of dog and is Dogecoin’s mascot. Shiba Inu was created in response to the wild popularity of DOGE and is hoping to capitalize on the hype. 

Shiba Inu is used to power the decentralized exchange (DEX) called ShibaSwap. Users can stake their holdings, provide liquidity and swap SHIB with other tokens on the exchange. However, ShibaSwap has not gained much popularity due to its novelty and is less secure than competitors. While it does not offer a ton of new features to the DeFi space, it is still adds to the value of SHIB.

SHIB is also used as a form of payment. SHIB can be sent to anyone else on the chain for a small fee. This is used by retailers as some accept SHIB as a form of payment. While not a lot of retailers currently accept SHIB as a form of payment, the list may get larger as the token becomes more popular. 

Shiba Inu Market Capitalization

SHIB is currently trading around $0.000023 with a market capitalization of nearly $15 billion. This is a huge difference from its 2021 lows of $0.00000516 and market cap of under $1 billion. SHIB has consistently gotten rid of 0’s in its price, up over 90,800,000% on the year. It has been one of the most profitable investments of not only the past year, but in the history of economics….up until late 2021. After its peak in October, Shiba Inu has fallen an astonishing (or predictable) 70%. This means an investment made in October of $100,000 is now worth just $30,000.

Can Shiba Inu Hit $0.01?

If Shiba Inu taught us anything, it’s that nothing is out of the question. Shiba shortly flipped DOGE in market capitalization, which few investors saw coming. However, a per token price of $0.01 would imply a market cap in the trillions of dollars. If Shiba Inu were to reach a penny, the cryptocurrency would be worth multiples more than Bitcoin. Because of the massive amount of capital required for SHIB to reach a penny, it’s highly unlikely this will happen.

How to Buy Shiba Inu

Shiba Inu has quickly gained steam in 2021 due to a large community of investors. Many crypto exchanges have taken notice and now offer the token for trading. The easiest way to buy SHIB is through a crypto brokerage. While a handful of crypto brokerages offer the token, 3 in particular stand out due to their ease of use, security, and focus on education. 

Coinbase, eToro and Webull are great options for anyone looking to quickly and securely purchase SHIB. To sign up, you only need an email and a password. The brokerage may also require some basic personal information in adherence to know your customer (KYC) laws. Once you have an account, you can fund it with an ACH or credit transfer. Navigate to the SHIB profile using the search bar and make your trade. 

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Is Shiba Inu a Bubble?

Due to Shiba Inu’s quick rise in both price and popularity, some say that the memecoin is a bubble, destined for a dramatic decrease in price. Those who claim that SHIB is a bubble say that there is essentially no reason for the price to increase so much. The token does not offer revolutionary features and does not have many major plans. Because of this, some believe that the price will eventually fall, and the “bubble” will burst.

While some say that the token is a bubble that is doomed, supporters of the token believe in the community of investors it supports. The token bolsters 1.5 million followers on Twitter and has a large number of extremely loyal fans. These fans may not have any intentions of selling, waiting for the price to increase even more. 

What Are Memecoins?

Memecoins are cryptocurrencies that make use of social media jokes or sarcasm in order to gain popularity. One of the first memecoins was DOGE, and many others followed. Other examples of memecoins are Tiger King Token and Poo Coin. These tokens rely on jokes and irony to attract investors.

Memecoins often do not offer any real services. Because of this, they can often be extremely risky. Memecoins are some of the most volatile investments available to retail investors, so it is important that you invest money you are willing to lose in memecoins. 

Is Shiba Inu a Good Investment?

While Shiba Inu has already seen historical price surges this year, many do not see the hype stopping anytime soon. Conversely, others see it as a bubble, ready to burst at any moment. Shiba Inu’s price will ultimately depend on the investors of the project. While a $0.01 price target may be too lofty of a goal to achieve, there still may be upside to the digital asset given the enormous hype around the coin. If there are large selloffs in the near future, however, the price may crash. 

Frequently Asked Questions

Can Shiba Inu reach a penny?

Technically speaking, Shiba Inu could reach a penny if enough capital were to start investing in dog-themed cryptocurrencies. But since Shiba Inu would need trillions in capital to reach $0.01, institutions and governments would need to purchase SHIB, which seems highly unlikely.

Will Shiba Inu reach new all-time highs?

Back in 2017 Dogecoin made massive gains and crashed. It then made a comeback in 2021, so if Dogecoin is any indicator Shiba Inu could still reach new all-time highs. However, it’s unlikely Dogecoin is a good indicator of whether or not SHIB will stick around.

Is Shiba Inu on Robinhood?

Shiba Inu was added to Robinhood crypto on April 12, 2022.

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