An investor lucky enough to put $2.66 into SHIB at midnight on January 1, 2021 would be a millionaire today


Over the very long term, the stock market has been one of the largest and most consistent creators of wealth in the world. But in the past couple of years, cryptocurrencies have been making the rounds on all major stock indices.

As an example, the broad S&P 500 index is up just over 100% since hitting its lowest level in March 2020. In comparison, the aggregate value of all digital currencies has increased by nearly 1,300% over the same period on January 20.

In itself, a gain of almost 1,300% in 22 months is impressive. But what the Shiba Inu meme currency has done in less than 13 months is nothing short of astounding.

Shiba Inu has made some life changing gains in a very short period of time.

According to data from CoinMarketCap.com, a SHIB token could have been purchased at midnight on January 1, 2021 for $0.000000000073. But since the beginning of 2021, six zeros following the comma have disappeared. As of this writing, these same SHIB tokens trade for around $0.0000275.

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

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 big boost for Shiba Inu in 2021. SHIB was listed on multiple crypto exchanges last year and received a boost from the launch of the decentralized exchange ShibaSwap in July. ShibaSwap had the dual benefits of improving the liquidity of a previously illiquid coin and enabling staking. The ability to stake SHIB tokens to earn passive income has encouraged investors to hold their SHIBs longer.

Shiba Inu takes another step

The Sgiba Inu also skyrocketed after reaching psychological milestones.

For example, each time a zero was knocked out after the decimal point of the SHIB, it demonstrated just how powerful momentum can be in the cryptocurrency space. After watching bitcoin soar as high as 8,000,000,000% in just over 11 years, cryptocurrency investors tend to worry less about the possibility of price reversals than the typical stock investor. .

The final psychological milestone for Shiba Inu came in the past two weeks, when the total number of unique SHIB owners topped 1.1 million, according to data from Etherscan. At the rate that the number of SHIB owners is increasing (approximately 25,000 new owners every 14 days), Shiba Inu seems to be about a month away from the next milestone: 1.2 million unique owners.

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

First, a larger community helps improve liquidity, and is counted on to increase merchant adoption. If a retailer understands that over 1.1 million people own a stake in SHIB, they may be more willing to accept it as payment.

Additionally, the community plays an important role in fueling interest in the Shiba Inu on social media like Twitter. Just knowing that there are over 1.1 million people betting on Shiba Inu rising in value over time can be powerful in a market where, as we noted, the short selling remains difficult.

A larger community also validates the work and effort put in by the Shiba Inu developers. The latter intend to roll out a blockchain layer 2 upgrade, called Shibarium, this year and continue their work on a blockchain-based gaming ecosystem, called Oshiverse.

Milestones aside, Shiba Inu is still an extremely risky investment.

While the milestones have been abundant for Shiba Inu since the start of 2021, the risks associated with SHIB have also been on full display. A number of factors suggest that Shiba Inu is going to have a tough 2022, such as their lack of competitive edge or real differentiation.

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

The Shiba Inu’s usefulness in the real world also leaves a lot to be desired. To be fair, the use of digital currencies in the real world is low across the board. Even bitcoin’s usefulness 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. .

While the online popularity of Shiba Inu is beyond question, the question of what will keep this project relevant for years to come remains.