Shiba Inu (CRYPTO: SHIB) is a highly speculative cryptocurrency that was created in 2020 by an anonymous developer named Ryoshi. The developer was trying to capitalize on the heightened interest in other meme coins, such as Dogecoin, which were soaring in value at the time. In 2021, Shiba Inu exploded higher by a staggering 45,278,000%, which remains one of the greatest annual returns in financial market history.
In fact, an investor who bought just $3 worth of Shiba Inu tokens on Jan. 1, 2021, would have been sitting on over $1 million by Dec. 31 of the same year. Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005.
But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue » Unfortunately, speculative frenzies never last, so Shiba Inu has since declined by 93% from its peak and now trades at just $0.00005 per token.
But investors are hopeful a fresh crypto bull market might be on the way, following strong rallies in some of the industry's leaders (like Bitcoin) over the past month. Could that send Shiba Inu soaring to $1 per token? The answer might shock you.
Shiba Inu wasn't created with a particular use case in mind, so it lacks an organic source of demand. Without a steady stream of buyers, it has a very slim chance of trending higher over the long term. While it can technically be used to make payments, only 1,226 businesses worldwide are willing to accept it in exchange for goods and services, and most are obscure providers of internet and crypto services.
Moreover, many investors consider Bitcoin a legitimate store of value, much like a digital version of gold, because it has consistently reached new highs since its launch in 2009. Shiba Inu, on the other hand, hasn't set a new high in over five years, which is why it doesn't experience much demand from the investment community. But there is an even bigger barrier standing in the way of Shiba Inu reaching $1: Its enormous supply.
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