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It’s an asset that either makes perfect sense to you, or is a complete enigma. I’m talking about dog-themed altcoin Shiba Inu (CCC:SHIB-USD), and whether you love it or hate it, Shiba Inu has posted life-changing gains this year.
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Of course, not every trader has made big money on SHIB-USD. As we’ll see, there’s been a recent pullback in the price, though this could provide an excellent entry point for investors.
Besides, it’s not just about the price action. There’s an abiding belief among Shiba Inu devotees (sometimes also called Vikings) that this token can help to protect the holders against inflation.
And indeed, there’s an upcoming event which could make SHIB more valuable. So, whether you have a dog in the race or not, this is a cryptocurrency you’ll definitely want to pay close attention to.
Analyzing the Shiba Inu Price
On the afternoon of Dec. 8, Shiba Inu was trading at $0.000037. That might sound like it’s next to nothing, but it actually represents a massive multi-month price gain.
I’ll put it to you this way: SHIB-USD started off the year at $0.000000000073. My old calculator won’t even allow me to input that number.
Zak Killermann, financial technology (fintech) and crypto expert with Finder, put the token’s astounding returns into perspective.
“Looking back at the last 12 months, SHIB gains are standing at a figure of 22,717,023.9%, placing it on the list of top 20 cryptocurrencies by total market cap,” Killermann calculated.
On the other hand, Shiba Inu has pulled back recently. The price topped out at approximately on $0.000087 on Oct. 27.
Therefore, if your brain can handle looking at all of those zeros, keep your eyes on SHIB-USD. Perhaps even consider buying a few coins on the dip.
Burn, Baby, Burn
As I alluded to earlier, one of the selling points of Shiba Inu is that it can provide some protection against U.S. dollar inflation.
Or at least, it can sidestep inflation, which is at a whopping 6.8% on an annualized basis.
For half a year, the inflation rate has stayed at 5% or higher. That’s unacceptable to many people.
In contrast, the supply of Shiba Inu tokens is actually going to get smaller, not bigger.
Reportedly, during the coming weeks, there will be a massive coin burn in order to reduce the supply of SHIB coins.
Plus, apparently “Ryoshi,” Shiba Inu’s enigmatic founder, stated that the coin burn is expected to pave the way for the project to enter into the metaverse.
An Expanding Shiba Inu Ecosystem
Ryoshi reportedly teased some upcoming SHIB-related projects.
They were quoted as saying, “We are working on so many aspects of Shiba Inu including Shibarium, Shi, Shibanet, The Decentralized Shiboshi Game, Incubator and much more that won’t become evident until the near future.”
This is encouraging, as there’s the potential for the token to have multiple applications.
If the Shiba Inu Project can get a strong foothold into the burgeoning metaverse, this should benefit the investors.
The idea here is to enhance the coin’s credibility. It’s already quite popular, and more traders are showing interest in SHIB.
In September, 1.5 million people searched for “Shiba Inu coin,” believe it or not. That represents a whopping 2.1 million percent jump.
Clearly, SHIB-USD has come a long way since its introduction. It’s likely that more people will start to take the token and the project seriously in 2022.
The Bottom Line
So, is it a bad thing that the Shiba Inu price pulled back?
This could be your chance to add to your position, or start a new one.
The imminent coin burn, along with the project’s expansion into the metaverse, should help to boost the SHIB-USD price.
So, don’t hesitate to take a chance on this cheap but high-conviction canine coin.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content — and crossed the occasional line — on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.