If you think Wall Street has had a good year, take a closer look at how well cryptocurrencies have performed. The aggregate value of all digital currencies has come close to tripling in 2021, and is up more than 14-fold since the March 2020 bottom.
While the “Big Two” — Bitcoin and Ethereum — account for 62% of the total digital currency market cap, neither coin has been creating more buzz or history this year than Shiba Inu (CRYPTO:SHIB).
Investors have had an insatiable appetite for Shiba Inu-themed coins this year. Image source: Getty Images.
Shiba Inu has been unstoppable in 2021
As someone who’s been investing in stocks for more than 23 years, I can confidently say that single-year gains of 10,000% or more are extremely rare. But this hasn’t held true for cryptocurrencies. This year alone there are a handful of digital tokens up by more than 12,000%. But even that’s peanuts compared to what SHIB has done this year.
When the clock struck midnight on Jan. 1, investors had the opportunity to purchase Shiba Inu for a mere $0.000000000073 per token, according to CoinMarketCap.com. But as of the late evening on Dec. 14, these same coins were going for $0.00003357. In removing six zeroes from its token price, Shiba Inu has moonshot higher by 45,986,201%. For some added context, it would have taken an initial investment of just $2.18 to make someone a millionaire with this sort of year-to-date return.
How on Earth does any asset rise by nearly 46,000,000% in 11 months and some change?
To begin with, Shiba Inu has benefited from increased visibility in multiple respects. It’s one of the most-searched cryptocurrencies in the U.S., and more crypto exchanges than ever are accepting SHIB for listing. It also hasn’t hurt that the number of aggregate SHIB “hodlers” (a term that affably describes crypto token holders) recently surged above 1 million.
The launch of decentralized exchange ShibaSwap is playing a critical role, too. While ShibaSwap is improving liquidity, it’s the ability to stake that’s most important. Staking to earn passive income has incentivized investors to hang on to their SHIB. Just two months ago, Shiba Inu’s median hold period was a laughably low six days, per crypto exchange Coinbase.
Investors are supportive of the ongoing coin burn, as well. After Ethereum co-founder Vitalik Buterin was gifted roughly half the 1 quadrillion coin supply by mysterious founder “Riyoshi,” he sent approximately 410 trillion of these SHIB to a dead blockchain address. With these coins now out of circulation, it in theory makes each remaining token that much more valuable.
Lastly, the fear of missing out and future upgrades, including the expected launch of layer-2 blockchain Shibarium in 2022, has hodlers excited.
Image source: Getty Images.
I’m not touching …….
Source: https://www.fool.com/investing/2021/12/17/heres-why-im-not-buying-shiba-inu-and-you-shouldnt/
