Could owning a Shiba Inu make you a millionaire? | Author: The Motley Fool

The cryptocurrency Shiba Inu (SHIB) has gained widespread attention and has a market value of $16 billion, but investors should not take it too seriously due to its meme nature. Although it has seen a price increase of 250% in 2024, its potential for long-term investment gains is questionable.

Shiba Inu was created in 2020 as an experiment to build an online community and has since become a well-known cryptocurrency. Despite a circulating supply of over 589 trillion tokens, each Shiba Inu token is currently worth about $0.000024. However, the token has appreciated by approximately 2,000,000%, making it potentially lucrative for some.

Its popularity as a meme coin may limit its potential for future price increases. Its market value currently stands at around $14 billion, down from its peak of $39 billion in 2021. This means that the token can only potentially double or triple in value, posing limited potential for significant returns. As a result, investors with small amounts of capital may not see significant gains as before.

Additionally, Shiba Inu’s status as a joke cryptocurrency discourages serious investments. Most people only invest small amounts, hoping for a quick profit. Approximately 90% of holders own less than $1,000 worth of Shiba Inu, and 98% hold $100,000 or less. This makes it unlikely for risk-averse investors to allocate a significant amount of funds to Shiba Inu.

Considering these factors, it is unlikely that Shiba Inu will experience significant growth in the near future. Instead, investors are advised to focus on established cryptocurrencies and blue-chip stocks for their investment strategies. Those interested in Shiba Inu’s technology may find it more beneficial to invest in Ethereum, the network on which the coin operates.

In conclusion, Shiba Inu has seen remarkable gains in the past, but its meme status and popularity limit its potential for significant future returns. It is advisable to approach it with caution and consider alternative investment options.