Shiba Inu appears set to persist in the crypto space, though significant price fluctuations may not be expected.
The Meme Coin Landscape
Among the thousands of meme coins in the cryptocurrency ecosystem, a handful—such as Dogecoin (DOGE +2.50%) and Shiba Inu (CRYPTO: SHIB), maintain market capitalizations exceeding $2 billion and exhibit potential longevity.
Staying Power Despite Price Drops
Launched in 2020, Shiba Inu’s price has plummeted over 90% from its peak; nevertheless, it continues to attract the attention of crypto investors, primarily due to its dedicated fan base known as the Shib Army. While I don’t consider it a sound investment, its community support may keep it alive.
Community Over Utility
Many critics overlook meme coins like Shiba Inu due to their perceived lack of utility, missing the essence of these assets. They’re centered around community engagement and enjoyment rather than practical use. Strong brand recognition and a sense of community are influential factors in their endurance.
Active Community Engagement
Shiba Inu commands an active following of over 825,000 on X, with a vibrant Reddit community that helps keep it within the top 50 cryptocurrencies. Even minor issues, such as the limited usage of its decentralized exchange and a recent security breach, haven’t significantly affected its presence.
Community Loyalty and Future Prospects
The Shib Army’s loyalty provides enduring support for the coin. However, sustained growth requires positive developments. Recent news offers some optimism:
- ETF Inclusion Possibility: Shiba Inu was listed among potential cryptocurrencies in T. Rowe Price‘s (TROW 0.97%) Active Crypto ETF application. This doesn’t guarantee a purchase, but it signals potential interest.
- New Derivatives Trading: Starting December 12, Shiba Inu will be available for perpetual futures trading on Coinbase Markets, aiming to attract more traders.
Investing Alternatives to Consider
Cryptocurrency is a volatile and emerging asset class that carries risks. While Shiba Inu might remain in the top 100 for now, investors might be better served by focusing on more promising projects. Bitcoin, for example, has earned significant institutional interest and remains a contender for future digital payments, proving resilient through volatility.
Furthermore, ecosystems like Ethereum (ETH +2.85%) and Solana (SOL +3.18%) are worth exploring, especially as Shiba Inu is based on the Ethereum blockchain.
In summary, while Shiba Inu is set to linger, the expectations of significant price recoveries seem unlikely.
