In the past, the well-known meme token Shiba Inu has contributed to the creation of several millionaires. The cryptocurrency experienced an incredible 45,000,000% surge back in 2021, attracting a growing number of investors hoping to cash in on its success.
However, since then, Shiba Inu has struggled to maintain its momentum, with its value dropping by 62% alongside the broader market decline last year due to economic uncertainties. Despite ongoing challenges, the crypto market, including Shiba Inu, has seen a recovery since the beginning of the new year. This begs the question: Is it possible for Shiba Inu to propel you to millionaire status in the coming months or years? Let’s explore this possibility.
A Remarkable Beginning
First, it’s essential to discuss Shiba Inu’s extraordinary emergence in the crypto world. The enigmatic Ryoshi introduced Shiba Inu in August 2020 as an “experiment in decentralized spontaneous community building,” according to its whitepaper.
In this regard, it has been remarkably successful, garnering a dedicated following known as the Shib Army, who passionately support the token across social media platforms and have faith in its potential to revolutionize the cryptocurrency landscape. However, Shiba Inu doesn’t offer much differentiation compared to the multitude of other cryptocurrencies available.
As primarily an Ethereum-based payment token, it enables investors to stake their holdings for passive income generation. Nevertheless, this functionality pales in comparison to blockchains that provide various applications, such as creating decentralized apps (dApps) and non-fungible tokens (NFTs).
A Silver Lining
On a positive note, Shiba Inu is set to launch Shibarium, a layer-2 solution that will lift certain restrictions it currently faces on the Ethereum network. Shibarium aims to enhance Shiba Inu’s speed and affordability while facilitating the development of chain-specific NFTs. This development will also bolster Shiba Inu’s presence in gaming and metaverse applications. Although the release of Shibarium has been delayed multiple times, some sources suggest that its beta version could launch as early as next week, potentially giving Shiba Inu a short-term boost.
Considering the Long Term
Now, let’s examine the likelihood of becoming a millionaire by investing in Shiba Inu. Although the forthcoming Shibarium launch should render Shiba Inu a more valuable asset than when it soared in 2021, that doesn’t guarantee it will achieve similar gains ever again. As the cryptocurrency market surpassed $3 trillion last year, investors flocked to this promising new sector. However, moving forward, investors may scrutinize cryptocurrencies more critically, with successful tokens needing to stand out from the competition.
Shiba Inu’s limited use cases pose a problem, as does its enormous token supply. Despite coin-burning efforts, the supply of approximately 549 trillion tokens may still be too vast. While Shiba Inu, currently trading at a small fraction of a cent, could appreciate enough to generate moderate returns for those with large stakes in the token, the sustainability of such gains remains questionable. Consequently, it’s unwise to invest heavily in a risky asset like Shiba Inu.
In summary, Shiba Inu is not the ideal candidate for a “millionaire-maker” portfolio. Instead, a more prudent approach would involve diversifying your investments across a range of reliable stocks and standout cryptocurrencies. While this strategy doesn’t guarantee millions, it should position you for solid long-term returns.