Is Shiba Inu (SHIB) a good investment? Shiba Inu’s Potential Analyzed for 2024 and Beyond

July 4, 2024 3:55 pm

In 2020, the crypto world saw another meme coin – Shiba Inu. The pioneer of this trend was Doge Coin, which blew up the cryptocurrency market with the bizarre concept. Few believed that any other coin could come close to trailblazer. The dominant market sentiment was that Doge would occupy the same place among meme coins as Bitcoin did in the world of cryptocurrencies. But Shiba Inu managed to repeat this success.

In this review we will look at everything that Shib holders would like to know. Is Shiba Inu a good investment? How will the Shib rate change in the next 10 years? We will look at the prospects for the capitalization and the long-term potential of the Shiba Inu according to crypto experts.

The article covers the following subjects:

Key Takeaways

Main thesis

Conclusions

Shiba Inu tokenomics

The Shiba Inu token runs on the Ethereum blockchain. Shiba Inu’s market capitalization is driven by its unique ecosystem, active participation of the Shiba Inu community, and speculation by investors.

Why is Shib useful?

Shiba Inu developers are working to make their coin more useful. In 2021, for example, a decentralized crypto exchange was launched.

What does the SHIB ecosystem include?

ShibaSwap decentralized exchange, LEASH and BONE tokens, Shiboshi NFT collection, Shiba Eternity trading card game

Prospects and risks

The Shib ecosystem includes a whole set of crypto projects with over 4 million users. However, the value of Shiba Inu is largely hype-based. Because of this, the high price reached amid a viral news story can drop significantly in just a few days.

Investing in Shiba Inu: Is it a Good Buy?

Shiba Inu coin is not innovative and does not provide access to any new market technologies. Still, many analysts consider the Shiba coin to be a good investment. The reason is risk tolerance, as well as the overwhelming support from Shib investors and fans of the coin united in the Shib Army community.

Almost 4 million users are subscribed to the project’s account on X alone. Thanks to the large army of fans, the Shiba Inu ecosystem can be considered relatively stable. The creators of the cryptocurrency are not sitting on their laurels – they are developing auxiliary projects that positively affect the value of Shiba Inu.

The first such project was the decentralized cryptocurrency exchange Shibaswap, which immediately attracted many crypto investors. Recently, the Shiba Inu team presented two more promising projects. One of them is the Bone platform management token with a total supply of a quarter billion coins. And the other is Doge Killer (LEASH) – a risk hedging token that investors buy when the Shiba Inu price falls.

However, there are also concerns about Shiba’s low price in the future. Most of them are related to the concentration of the coin around one investor’s wallet. Once, a large donation from this wallet has already led to a sharp drop in the price of Shiba Inu.

Creation of SHIB

Shiba Inu coin was launched in August 2020 by a group of anonymous people known in the crypto community as Ryoshi. The token got its name from the Japanese Shiba Inu dog breed that became a character in many memes.

This is the same dog breed that has become the symbol of the Dogecoin cryptocurrency based on the Doge meme. The Shiba Inu network was presented as a Dogecoin killer and continues to be positioned as an alternative meme coin. The stated goal of the project is to bypass the market cap of DOGE, Elon Musk’s favorite coin, and gain a foothold among the leaders.

Ethereum was chosen as the blockchain for Shiba Inu coin. This was not by accident: the creators of the token believe that only Ethereum can be considered a truly decentralized and secure network. As it turned out later though, this is also the main weakness of the Shib coin.

The creators of the Shib coin announced the launch of the best decentralized ecosystem (DECO) on the planet and voluntarily abandoned the practice of distributing the coin among its creators. Half of all Shib was sent to the Uniswap exchange, and the other half was sent to the wallet of Ethereum founder Vitalik Buterin. Rioshi stated that as long as Vitalik is committed to the project, the Shiba Inu cryptocurrency will live and develop.

A bullish trend immediately began for the meme token and in 4 days the rate of Shiba Inu increased 25 times. In May, the total approximate value of Shib was estimated at $500 million. Shib was then listed on the Huobi and OKex exchanges. After this, many more people wanted to invest in Shiba Inu, which led to the growth of the Shiba Inu market up to $8 billion.

Vitalik Buterin initiated the first powerful price fluctuation in the history of the Shib cryptocurrency. He donated 50 trillion Shib to the India Covid-Crypto Relief Fund. Due to this decision of the main investor, the price of Shiba Inu began to fall and within a month the Shib rate dropped by 55%.

Vitalik Buterin’s donation was not the only turning point in the history of Shib’s price. In the chart above you can see two other key points, which I will discuss below.

SHIB Tokenomics and Key Statistics

While the theme of the token may make you smile, in terms of its tech Shiba Inu looks very decent. In an effort to create the most decentralized cryptocurrency, the developers of Shiba Inu were careful in choosing the blockchain. Their choice fell on the Ethereum blockchain: the Shib token operates on the ERC-20 standard.

Choosing ERC-20 allows you to integrate the token into the developed Ethereum infrastructure, which includes dozens of cryptocurrency wallets, decentralized exchanges (DEX), as well as other DeFi services.

At the time of Shiba Inu’s launch, the supply was a full quadrillion tokens. To date, the number of coins in circulation has noticeably decreased. After the burning of coins by Vitalik Buterin, their total number is estimated at 589 trillion.

Despite the initial idea of ​​Shiba Inu as a joke project, in 4 years the virtual currency ecosystem has grown so much that it is simply impossible to take it lightly. Thanks to its dedicated and large community, Shib is ranked among the top twenty digital currencies by market capitalisation.

The Shib ecosystem includes several crypto and Web3 side projects:

  • Decentralized exchange ShibaSwap. Here Shiba Inu holders can trade tokens, be added to liquidity pools, and stake the coin. The exchange’s opening created a robust DeFi environment and Shib went from being a joke to a token that has real value. BONE is the governance token for ShibaSwa, which allows members of the Shib Army to vote on Doggy DAO.

  • LEASH and BONE – two tokens from the developers of Shiba Inu. The former is positioned as a coin for especially loyal fans of the network: its holders get priority access and special benefits.

  • A collection of Shiboshi non-fungible tokens (NFTs). Includes 10,000 digital images that sold out in 34 minutes!

  • Shiba Eternity is a free-to-play collectible card game in which players must collect cards featuring the Shiboshi subspecies of the Shiba Inu.

All the above and future projects are combined into one SHIB metaverse, which is continuously expanding. But the main achievement of the developers is the launch of a second-level blockchain, which is typical for serious long-term projects. That is why the army of Shiba Inu fans is showing multiple growth, and investments in the project are increasingly being made not by meme lovers, but by serious crypto investors.

Price History Since Inception

The Shiba Inu coin rate started its way on the cryptocurrency market with a meager coin value of $6.13E-8. The minimum price of Shib was fixed in March 2021 at $4.01E-8. At that time, few people wanted to buy a Shiba Inu coin, and all the most interesting things in the history of the Shiba Inu coin were yet to come.

Shib reached its first peak in May 2021 with the participation of Vitalik Buterin described above. On May 7, the market rate was about $0.000002. By May 9, when the crypto community learned that half of Shib’s capitalization was Buterin’s investment, the price of Shiba Inu rose to $0.000015. And in 2 days, Shib will reach a record value for that time at $0.0000328. In the chart above, this jump is marked with a blue arrow.

However, the Shiba Inu’s status as the fastest growing currency did not last even 24 hours. Many were still trying to buy Shiba Inu coins by inertia, but the very next day the rate fell by 23%. The bearish trend stabilized only by the end of May, the average trading price stopped at $0.000008-0.000009.

Despite the setback, the cryptocurrency developers were confident that Shiba Inu would grow and would definitely reach new heights in the long term. And they were not mistaken – on October 27, 2021, the meme cryptocurrency updated its all-time high, reaching a record $0.0000717. In just 24 hours, Shib grew by a third. This happened after reports of support for the coin by the Robinhood app and the appearance of a corresponding petition on the Change.org website.

In the chart above, this jump is marked with a green arrow.

At the end of 2023, the digital currency was trading in the range of $0.000009-0.00001 and not a single Shib price forecast promised a new market jump. But in March 2024, amid the news that PricePredictions artificial intelligence algorithms predicted that Shiba Inu could reach $0.000043 by the end of the month, there was another surge in buying activity. The price jump was not as big as in 2021, but in just a few days the coin reached $0.000034. By the way, the neural network’s price forecast did not come true and at the end of March 2024 the Shiba Inu was trading in the range of $0.000025-0.000028.

In the chart above, this price movement is marked with an orange arrow.

Expert Price Predictions and Forecasts

We have looked at the main historical milestones in the development of Shiba Inu. Now let’s look into the future and consider long-term forecasts for SHIBUSD from well-known analytical platforms and cryptocurrency exchanges.

Forecast 2024-2033 from PricePrediction

PricePrediction’s long-term forecast takes into account all possible historical data, such as market capitalization, price volatility, trading volumes. The analysis is done with AI.

Year

Price low

Average price

Price high

2024

$0.000028

$0.000029

$0.000033

2025

$0.000040

$0.000041

$0.000048

2026

$0.000060

$0.000062

$0.000069

2027

$0.000088

$0.000090

$0.000105

2028

$0.000121

$0.000126

$0.000153

2029

$0.000182

$0.000188

$0.000212

2030

$0.000271

$0.000279

$0.000321

2031

$0.000395

$0.000409

$0.000469

2032

$0.000592

$0.000612

$0.000680

2033

$0.000900

$0.000925

$0.0010

According to PricePrediction’s long-term forecast, in 2024 the low and high prices will be in the range $0.000028-0.000033. But by 2030, the price of Shiba Inu is expected to increase multiple times. Shib is expected to trade around $0.000321 on average. By 2033, the price of Shiba Inu coin will be around $0.0010.

Forecast 2024-2029 from Wallet investor

Year

Price low

Average price

Price high

2024

$0.00001076

$0.0000244

$0.0000306

2025

$0.00002061

$0.00000784

$0.0000329

2026

$0.0000167

$0.000001

$0.0000365

2027

$0.0000128

$0.000001

$0.0000393

2028

$0.00000912

$0.000001

$0.0000482

2029

$0.000001

$0.00000912

$0.0000512

Wallet investor has issued a shorter-term forecast for Shiba Inu until spring 2029. Neither is it as optimistic as PricePrediction’s forecast. According to Wallet Investor, by the end of 2024 the price will be $0.0000261. By 2029, analysts predict a twofold decrease in quotes to $0.00000912. The minimum price is expected to be $0.000001. And in an optimistic scenario, the cost of Shib will be $0.0000512.

Forecast 2024-2030 from Binance

Year

Average price

2024

$ 0.000031

2025

$ 0.000033

2026

$ 0.000034

2027

$ 0.000036

2030

$ 0.000042

Binance’s Shiba Inu forecast is more moderate than the previous ones. By 2025, a slight increase is expected to $0.000033. In the coming years, Shiba Inu will gain several points per year and by 2030 its value will be $0.000042.

Forecast 2024-2033 from technewsleader.com

Year

Price low

Price high

2024

$0.000028 

$0.000032

2025

$0.000040 

$0.000050

2026

$0.000057 

$0.000069

2027

$0.000088 

$0.000099

2028

$0.000131 

$0.000154

2029

$0.000191 

$0.000230

2030

$0.000284 

$0.000327

2031

$0.000424 

$0.000486

2032

$0.000635 

$0.000736

2033

$0.000947 

$0.0011

The analytical portal technewsleader.com gives an optimistic forecast for Shiba Inu, according to which moderate growth is expected in the coming years. By 2025, the maximum price may reach only $0.000050. But even in a negative scenario, the forecast quotes will not fall below $0.000040.

By 2030, the value of Shib is expected to increase tenfold. The price high during this period may be at $0.000327. By 2033, Shiba Inu may grow by another order of magnitude, reaching $0.0011 at its peak, which may sound like a fantasy for today.

Forecast 2024-2029 from gov.capital

Year

Price low

Average price

Price high

2024

$0,00002815

$ 0.000039

$0,00004485

2025

$0.00003995

$0.000047

$0.00005405

2026

$0.0000561

$0.000066

$0.0000759

2027

$0.0000782

$0.000092

$0.0001058

2028

$0,00009605

$0.000113

$0.00012995

2029

$0.000252

$0.000259

$0.000293

The gov.capital forecast is based on a technical analysis of Shiba Inu’s historical data. Going forward, Shib’s appreciation is expected to accelerate towards the end of the decade. While in 2025 the expected average price is $0.000047, in 2028 it will overcome the psychological threshold of $0.0001 and reach $0.000113. And by 2029, according to gov.capital forecast, the average price of Shiba Inu will be $0.000259.

Factors Influencing SHIB’s Price and Adoption

The goal of the Shiba Inu team is to bring the coin rate to $1 and gain a foothold above. Analysts believe that the psychologically significant mark will be $0.001. If the cryptocurrency overcomes this level in the next 2 years, then it will have a chance to reach more significant numbers. I wouldn’t be surprised if in 2026 experts said the same thing about the price of $0.01, and then $0.1.

If we move away from technical analytics to fundamental factors, the popularization of the Shibarium second-level cryptocurrency network can contribute to the growth of Shib. The new coin will clear the way for NFT transactions, as well as games based on non-fungible tokens. Its launch will also reduce transaction costs and significantly increase network speed. The bad news is that the launch of Shibarium has been postponed to an undetermined date. But the developers confirm in every possible way that the project is still on.

Since we are talking about non-fungible tokens, it is worth mentioning the Shiboshi collection. These NFTs appeared in late 2021 and sold 10 thousand in just 34 minutes. This fact once again speaks of the unity of the Shiba Inu community and the high demand for the team’s digital products. The collection includes images based on the Shiba Inu dog meme.

Also, the NFT owners get access to exclusive plots of land in the SHIB: The Metaverse, so they actively participate in its expansion. They also have a privileged right to vote in discussions about the development of Shiba Inu and the adoption of certain decisions by the project team.

Another potential catalyst is the Shibburn project. The service destroys (burns) Shib tokens at the request of the owner. It is expected that the massive burning of Shiba Inu could lead to a sharp rise in prices due to reduced supply. However, this theory has not yet been tested in practice, with the exception of Vitalik Buterin’s token burning. But in that situation, the reduction in supply coincided with the hype around the loss of a key investor, which pushed the price of Shiba Inu up a few days before it.

Another project that influences the Shiba Inu price is the card game Shiba Eternity. It was a success among fans; usually the launch of such projects leads to an increase in demand for cryptocurrency. However, the opening of access to Shiba Eternity coincided with a strong bearish trend that swept the entire cryptocurrency market. Therefore, it is not yet possible to assess how much the launch of the game affected the Shib rate.

All of the bullish trends in the Shib chart were due to social media hype, which largely determined the massive buying and selling of the meme coin. If the team continues to create such hype around its product, this could become a powerful fundamental factor for rapid growth to $0.001 and above.

Is Shiba Inu a Good Investment for Long Term?

Shiba Inu investors believe Shib could reach $0.01 or even $1. However, the reality is that reaching even $0.01 is not an easy task for a cryptocurrency.

The Shiba Inu team is actively developing the project, wanting to make the ecosystem more competitive and attractive to a wider audience. The next planned step is the creation of the Shibarium second-level blockchain. According to the project website, the Shibarium network was in beta at the end of 2023.

There are also plans to add digital identity services to all network applications in the future to build trust among potential users. According to the developers, the use of sovereign personal data will give community members more control over their information and its distribution on the network.

The project’s website also hints at the possible arrival of a new token in the ecosystem. A mysterious blurry description can be seen next to the asset information of SHIB, BONE, and LEASH.

Another unique aspect of the Shiba Inu Project is the Artist Incubator. The network encourages the creation of unique NFTs to promote the excitement around the meme project. The project is also aimed at charity. The developers have set up a network to integrate Amazon Smile. Part of the proceeds from sales of NFT images goes to the Shiba Inu Rescue Association. According to the developers, thousands of these dogs are looking for new homes, and the project aims to solve this problem.

Despite the success and popularity of the currency, Shib has several problems. Early critics spoke of the coin’s lack of practical utility and its potential fragility. This is often the case with meme tokens; they disappear as quickly as they appear. Therefore, before making trading and investment decisions, it is important to carefully study the project yourself.

The Shib rate is extremely unstable. This is typical for most cryptocurrencies, but more so for meme coins, since they have no practical use and are used for speculative trading. This volatility can lead to sharp price fluctuations due to news, speculation, changing sentiment, etc. Many traders are attracted by such volatility, which allows them to make considerable profits. However, the risks are also high. Before trading Shib or similar assets, always do your research and never trade more than you are willing to lose.

One of the main problems that Shiba Inu’s developers have faced is scaling. Although the market capitalization of the cryptocurrency has grown significantly, the trade volume has not kept pace. Lack of scalability can be a serious obstacle to the long-term growth of cryptocurrencies.

Shib’s growth is also hampered by the number of tokens in circulation – 589 trillion. This means a high probability of dilution, which over time can lead to a decrease in the value of the token.

However, the Shib team’s plans for the future and the introduction of advanced token standards show that the developers are serious about competing with other projects.

Investment Risks and Rewards

What started as a playful idea to become a “Dogecoin killer” has grown into a massive full-stack Web3 ecosystem. A liquidity pool and swap exchange are already operating here, and the issuance of NFTs and tokens is supported. Shiba SWAP has been audited by Certik, the leading security auditor for blockchain projects.

Today Sheba is attracting the attention of investors. The idea that the price of Shib will be able to reach $1 per coin still looks like a naive fantasy. Professional crypto experts are more cautious in their forecasts and believe that Shib could rise to $0.0001 no earlier than 2030. But even such assessments cannot provide complete certainty.

However, it is worth taking into account the disadvantages that SHIBA INU has, and they certainly do exist. The first and most important disadvantage of this cryptocurrency is the lack of utility. The token has virtually no real-life use. To be frank, Shib is used only for speculation on cryptocurrency exchanges. If you look at the Cryptwerk business directory, it states that only 932 sites accept Shib as payment and more than 15% of them are on crypto exchanges.

The second drawback, which was already mentioned above, is that Shiba Inu does not offer anything new and is only a meme cryptocurrency. Its success depends entirely on the actions of the marketing team and the faith of the SHIB ARMY fans. If the company does not come up with anything new and relies only on marketing, then it will not be able to maintain a market capitalization of $16.67 billion and 16th position in the cryptocurrency ranking.

Investing in SHIB: Strategies and Platforms

Now the Shiba Inu cryptocurrency costs literally pennies and looks like a promising long-term investment. Traders and investors fund their Shib wallets in the hope that the value of the coin will increase in the future and generate profits.

The Shiba Inu token (Shib) is available to buy on most cryptocurrency exchanges. You can also trade it on the LiteFinance online platform.

In terms of investment strategies, I would not recommend investing in Shib for the long term due to its frivolous nature. Yes, the development team has managed to do a lot in recent years. Perhaps the most important achievement is the army of loyal fans, whose active participation in the project is taken into account even when making price forecasts.

Another important development was the attempt to find practical applications for Shib by expanding the ecosystem. Shib could become a truly popular cryptocurrency, but this is a relatively distant prospect. In the meantime, we are dealing with a coin with an unstable exchange rate that is still searching for its applied niche. The developers’ goal to surpass Dogecoin was never really insignificant. The project’s development strategy remains opaque, and the team remain in the shadows. This also poses certain risks due to increasing pressure from regulators.

Anyone wishing to include Shib in their trading portfolio should remember about the importance of risk management. Always follow the principle of “never trade more than you are willing to lose.” If you do decide to start trading Shib, then at least you should master the basics of technical analysis.

So Is Shiba Inu a Good Investment?

There are a lot of dog-themed meme currencies, so why exactly is Shib in the top ranks? The secret lies in the aggressive marketing: the developers called the project the Dogecoin killer and brought Vitalik Buterin into its promotion.

This is how the Shiba Inu coin gained worldwide fame, winning the hearts of many enthusiasts with its fun theme. The project that started as a joke in the cryptocurrency world has gained a large fan base and increased its value over time.

Community members can trade NFTs with Shiba Inus, explore the Shib Metaverse, play games and seek innovative solutions on the L2 blockchain. Further development of the ecosystem is expected in 2024, which makes Shib a promising project for developers and traders. Still, don’t forget about volatility. The inherent unpredictability of meme coins can result in strong price fluctuations for Shib and lead to greater risks for anyone wishing to trade this asset.

Regardless of Shib’s future, many believe that the token symbolizes the strength of crypto communities and the importance of a common goal, as well as demonstrating the capabilities and diversity of Web3. Unfortunately, these concepts are very difficult to measure, so from a fundamental point of view Sheba is still not the most attractive asset for an institutional investor.

As for the speculative component, technical analysis shows the absence of any long-term trend. The chart is not much different from other pump and dump tokens of projects that are no longer on the market. The situation may change if Shib manages to gain a foothold in the trading range of 0.000028 – 0.000017. If after this we see a continuation of the upward trend with a breakdown of the upward channel, this will be a positive signal for investors. Until this happens, Shib remains a speculative token for intraday trading and scalping.

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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