The crypto market has been on a roller-coaster ride for the past two years, but Shiba Inu has presented itself as an investment-worthy project.

SHIB has been in the limelight for various reasons, though it still comes under the category of penny crypto. However, this crypto has always proved to be an excellent investment choice for investors with its use cases and continuous upgrades to the Shiba Inu ecosystem.

But what exactly is Shiba Inu crypto? And how did it become part of the crypto space? Is it good for short-term or long-term investment? Let’s find out in this article.

Origin of Shiba Inu

Shiba Inu was developed by a pseudonymous creator known as Ryoshi in August 2020, who described the initiative as an experiment in community governance and decentralization. The SHIB token’s smart contract was deployed on the Ethereum blockchain, with an anonymous associate contributing 10 ETH to provide liquidity for an ETH/SHIB trading pair on the Uniswap decentralized exchange.

Following an initial surge of interest, Shiba Inu went dormant until February 2021, when Ryoshi published another Medium article announcing the project’s revival due to the “Resurgence of Doge.” The similarities between Shiba Inu and Dogecoin, another meme coin, sparked renewed interest in the project, leading to increased traction within the crypto community.

About Shiba Inu Ecosystem

Shiba Inu operates on a decentralized network that utilizes blockchain technology to manage and track transactions. The blockchain serves as a continuously updated record of every crypto transaction. Shiba Inu, specifically, runs on the Ethereum blockchain, which provides the platform’s safety and functionality.

Shiba Inu is divided into several tokens that support the operation of the entire crypto ecosystem:

• SHIB – The basic Shiba Inu currency can be traded and used as a medium of exchange.
• LEASH – The LEASH token is the most limited of the Shiba Inu-related coins, with a maximum supply of 107,646 units. It offers staking rewards to people who verify Crypto transactions.
• BONE – Shiba Inu users can cast their votes for multiple proposals using the 250 million unit BONE token.

Shiba Inu also features other aspects of a community, such as Shiboshis, a kind of Non-Fungible Token (NFT), and ShibaSwap, its decentralized platform for trading coins.

The crypto’s ecosystem continues to spoof its dog-themed coin, including its white paper, which its creators call a “WoofPaper.” Meanwhile, it refers to the coin’s supporters as its “Shib Army.”

Shiba Inu’s Price History

The journey of Shiba Inu exemplifies the unpredictable and volatile nature of memecoins in the digital asset market.

Shortly after its launch in August 2020, Shiba Inu quickly gained popularity due to celebrity endorsements, including Tesla founder Elon Musk. Despite the creation of many copycat cryptocurrencies, Shiba Inu remains the most recognizable among them.

Shiba Inu’s price history is a testament to its roller-coaster journey. Musk’s endorsement brought significant attention to the coin, driving its price up by an astonishing 4,000% in just three months, peaking at $0.000035. However, this peak was short-lived, and the meme coin soon plummeted, losing 90% of its value.

After the initial hype, Shiba Inu experienced a second, even larger rally six months later. This rally was triggered by Musk’s announcement that Tesla electric cars could be purchased with Dogecoin, which led to Shiba Inu’s price surging to $0.000075, marking a 1200% increase.

However, the bear market of 2022 caused a steep drop in value, with the coin losing around 90% of its peak value. Despite this, 2023 was a quietly positive year for crypto assets, with many performing well and starting the new year with vigor. This renewed interest in the crypto market was largely due to the approval of 11 spot Bitcoin Exchange-Traded Funds (ETFs) in the US, which was seen as a step towards legitimizing crypto as an investment.

As of May 2024, Shiba Inu’s price is $0.00002419. Although this is still over 70% down from its all-time high in 2021, it represents an almost 300% increase since the beginning of the year.

Shiba Inu’s volatile history illustrates the highs and lows of memecoins, which are heavily influenced by external factors such as social media sentiment and celebrity endorsements. These factors are crucial to consider when predicting future prices.

Factors Influencing Shiba Inu’s Price

Various factors impact Shiba Inu’s price:

• Market Sentiment: As a meme coin, Shiba Inu’s price is heavily influenced by the overall mood of the crypto market and the buzz it generates on social media.
• Meme Coin Competition: The meme coin space is crowded, with competitors like Dogecoin, FLOKI, Dogelon Mars, and Baby DogeCoin vying for attention.
• Mainstream Adoption: Increasing acceptance and listings on major exchanges have boosted Shiba Inu’s popularity.
• Whale Movements: Large SHIB holders can significantly affect its price, making it susceptible to their buying and selling decisions.
• Technological Advancements: Initiatives like Shibarium indicate a commitment to enhancing SHIB’s utility, hinting at a brighter future for the coin.

After a brief overview of Shiba Inu, it’s clear that SHIB is a good investment choice. Now, the question arises of whether you should invest in SHIB for the short or long term.

Let’s find out!

Considering Shiba Inu for Short-Term Investment

• High Volatility and Rapid Price Swings:

Shiba Inu’s price is highly volatile, offering the potential for substantial gains within short time frames. Traders can capitalize on rapid price movements for quick profits.

• Active Community:

Shiba Inu boasts a large and active community that continuously promotes and supports the coin. Community-driven initiatives and engagement often increase visibility and trading activity.

• Influence of Market Sentiment, Celebrity and Influencer Mentions:

Endorsements or mentions by high-profile figures like Elon Musk can trigger significant price movements. Staying tuned to social media channels can help investors anticipate and react to these surges.

• Technological Advancements:

Recent developments like Shibarium indicate ongoing efforts to enhance SHIB’s utility and functionality. These advancements can lead to renewed interest and temporary price spikes.

• Major Exchange Listings:

Listing on prominent exchanges increases SHIB’s liquidity, making it easier to trade. Higher liquidity facilitates quick entry and exit, which is essential for short-term Shiba Inu Investment strategies.

• Accessibility:

Shiba Inu is widely available on many major trading platforms, making it accessible for traders looking to execute quick trades. Easy access ensures that investors can swiftly take advantage of market opportunities.

• News and Trend Sensitivity:

SHIB is highly responsive to news and trends, with prices often reacting sharply to market developments. Investors can leverage timely news to predict short-term price movements.

By considering these factors, short-term investors can strategically position themselves to exploit the frequent price fluctuations and potential gains that Shiba Inu offers.

Considering Shiba Inu for Long-Term Investment

• Growing Ecosystem and Development:

Shiba Inu is expanding its ecosystem with initiatives like Shibarium, which aim to improve scalability and transaction efficiency. Continued development efforts increase the coin’s utility and potential long-term value.

• Mainstream Adoption and Exchange Listings:

Increasing acceptance and listings on best exchanges in India enhance SHIB’s liquidity and accessibility. Mainstream adoption signifies growing recognition and potential integration into broader financial systems.

• Community Engagement and Support:

SHIB boasts a large and passionate community that has been actively involved in development and promotion since its inception. Strong and continuous community support can sustain long-term interest and market presence.

• Unique Position in the Market:

Shiba Inu occupies a distinct niche as a prominent memecoin with real-world applications and utility developments. Its unique characteristics may contribute to long-term growth potential amidst evolving market dynamics.

• Market Maturity and Investment Potential:

Shiba Inu’s established presence and ongoing developments position it for potential long-term value appreciation in a maturing crypto market. Long-term investors may benefit from Shiba Inu Investment strategic positioning in a coin with evolving use cases and community-driven momentum.

Considering these factors, Shiba Inu presents itself as a viable option for long-term investment. It combines technological advancements, community support, and potential market integration to offer growth opportunities over an extended period.

How to Invest in Shiba Inu (SHIB)?

Investing in SHIB is the same as investing in any other crypto. You can buy and store Shiba Inu from India’s most trusted exchange, WazirX. By having a brief overview of Shiba Inu from the above sections, you can decide whether to invest in the short term or HODL for the long term.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.