Shiba Inu (SHIB 1.75%) may have helped create some millionaires in the past. The popular meme token soared about 45,000,000% back in 2021. And as Shiba Inu skyrocketed, more and more investors flocked to this crypto with dreams of getting rich, too.
Since then, Shiba Inu has had trouble keeping those dreams alive. The cryptocurrency sank along with the general market last year. It fell 62% as investors fled the riskiest assets amid economic turmoil. Economic troubles continue, but the crypto market -- including Shiba Inu -- has rebounded since the start of the year. Now, the question is this: Could Shiba Inu help you become a millionaire in the months or years to come? Let's find out.
A spectacular arrival
First, let's talk about Shiba Inu's spectacular arrival on the scene not too long ago. A mysterious creator known only as Ryoshi launched Shiba Inu back in August of 2020.
The token was developed as an "experiment in decentralized spontaneous community building," according to its whitepaper. And in those terms, it's been highly successful. Loyal followers -- the Shib Army -- have supported Shiba Inu across social media and believe in the token's ability to shake up the world of cryptocurrency.
Now you might wonder what sets Shiba Inu apart from the thousands of cryptocurrencies out there? The answer is, not much. And that's Shiba Inu's biggest problem. The crypto is primarily a payment token running on Ethereum. Investors also can stake their holdings to generate passive income.
So Shiba Inu doesn't look particularly exciting compared to blockchains offering a broad range of uses, such as the creation of decentralized applications (dApps) and non-fungible tokens (NFTs).
But there is some good news ahead. Shiba Inu is about to launch Shibarium, a layer-2 solution that will free the cryptocurrency from certain limitations it faces today on Ethereum. Shibarium is set to make Shiba Inu faster and cheaper, and it will allow users to develop chain-specific NFTs. Shibarium also will strengthen Shiba Inu's presence in gaming and metaverse applications.
Shiba Inu has delayed the release several times over the past year. But some sources say Shibarium beta could launch as soon as next week. A potential launch could offer Shiba Inu a near-term boost.
A long-term view
Let's talk labout your chances of becoming a millionaire by investing in Shiba Inu. Yes, Shiba Inu should be a better asset after launching Shibarium than it was when it soared back in 2021. But that doesn't mean Shiba Inu will even come close to replicating those gains.
The cryptocurrency market climbed past $3 trillion in 2021 as investors piled into this exciting newish market. These days -- and in the future -- investors may look at crypto players with more and more of a critical eye. The winning cryptocurrencies likely will stand out from the crowd.
As for Shiba Inu specifically, the crypto faces the problem of limited uses, as mentioned above, and an even bigger problem that could hold it back from significant gains. That's the massive token supply. Even coin-burning efforts may not be enough to put a dent in the supply of about 549 trillion.
Of course, Shiba Inu, trading at a fraction of a cent, still could rise enough to deliver a decent gain to investors who take a massive stake in the token. But I'm not convinced a potential gain would be lasting, and I don't recommend taking a huge position in a risky asset like Shiba Inu.
All of this means Shiba Inu isn't the best choice for a "make-me-a-millionaire" portfolio. Instead, you're better off investing in a variety of solid stocks and strong cryptocurrencies that stand out from the crowd. Even this won't guarantee millions. But it should set you on the right track for great returns over time.
