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An investor who was lucky enough to invest $2.66 in SHIB at midnight on January 1, 2021 would be a millionaire today

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shiba inu crypto


Over the very long term, the stock market has been one of the world’s largest and most consistent wealth creators. However, in the last two years, cryptocurrencies have made the rounds of the major stock market indices.

As an example, the broad S&P 500 index is up just over 100% since bottoming in March 2020. By comparison, the aggregate value of all digital currencies rose nearly 1,300% in the same period on January 20.

In and of itself, a gain of nearly 1,300% in 22 months is impressive. But what the Shiba Inu meme coin has done in less than 13 months is simply staggering.

The Shiba Inu has made life-changing breakthroughs in a very short period of time.

According to data from CoinMarketCap.com, one SHIB token could have been purchased at midnight on January 1, 2021 for $0.000000000073.. But as of the beginning of 2021, the six zeros after the decimal point have disappeared. At the time of writing this article, those same SHIB tokens are trading at about $0.0000275..

Although it may be hard to tell with so many zeros, this represents a staggering gain of nearly 37,700,000%. ¡! To put this in context, an investor lucky enough to put $2.66 into SHIB at midnight on January 1, 2021 would be a millionaire right now.

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Shiba Inu’s historic gains are the result of a multitude of factors and catalysts working in its favor.

Increased visibility and liquidity on multiple fronts has been another major advantage for Shiba Inu in 2021. SHIB was listed on several cryptocurrency exchanges last year and received a boost with the launch of the decentralized exchange ShibaSwap in July. ShibaSwap had the dual advantages of improving the liquidity of a previously illiquid coin and enabling parking. The ability to stake SHIB tokens for passive income has encouraged investors to hold their SHIBs for longer.

Shiba Inu takes another step forward

The Sgiba Inu also soared after passing the psychological milestones.

For example, every time a zero was removed after the SHIB decimal point, it showed how powerful momentum can be in the cryptocurrency space. After watching bitcoin rise as much as 8,000,000,000,000% in just over 11 years, cryptocurrency investors tend to be less concerned about the possibility of price reversals than the typical stock investor.

Shiba Inu’s latest psychological milestone occurred in the past two weeks, when the total number of unique SHIB holders surpassed 1.1 million, according to Etherscan data. At the rate SHIB holders are growing (about 25,000 new holders every 14 days), it looks like Shiba Inu is about a month away from reaching the next milestone: 1.2 million unique holders.

The development of the Shiba Inu community is important for several reasons.

First, a broader community helps improve liquidity, and is relied upon to increase retailer adoption. If a retailer understands that more than 1.1 million people have a stake in SHIB, they may be more willing to accept it as a payment method.

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In addition, the community plays an important role in fueling interest in Shiba Inu on social networks such as Twitter. Just knowing that there are more than 1.1 million people betting that the value of Shiba Inu will increase over time can be powerful in a market where, as we have noted, short selling remains difficult.

A broader community also validates the work and effort put in by the Shiba Inu developers. They plan to release a blockchain layer 2 update this year, called Shibarium, and continue work on a blockchain-based gaming ecosystem called Oshiverse.

Milestones aside, Shiba Inu remains an extremely risky investment.

Although milestones have been plentiful for Shiba Inu since the start of 2021, the risks associated with SHIB have also been in plain sight. Several factors suggest that Shiba Inu will have a difficult 2022, such as its lack of competitive advantage or true differentiation.

Shiba Inu is an ERC-20 token built on the Ethereum blockchain. For now, this means it is subject to the same ultra-high processing times and transaction fees that plague the Ethereum network. Shibarium can help reduce SHIB’s transaction costs, but it won’t help this payment currency stand out in a crowded space.

The real-world utility of Shiba Inu also leaves much to be desired. To be fair, the use of digital currencies in the real world is low across the board. Even the usefulness of Bitcoin is somewhat questionable, with El Salvador being the only country to recognize it as legal tender. However, the fact that SHIB is only accepted as a means of payment by 600 merchants worldwide, according to online business directory Cyrptwerk, is an exceptionally low figure for a digital currency with a market value of more than $15 billion.

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While there is no doubting the popularity of the Shiba Inu online, the question of what will keep it relevant for years to come remains.

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