Investing in crypto has made many people rich in recent years, even millionaires. Shiba Inu (SHIB -3.84%) took off in popularity in 2021 as meme stocks and coins rocked the markets.
With crypto rising in popularity of late, could there be another strong bull run for Shiba Inu in the future? Is there the possibility that it could still make even more millionaires?
A potential catalyst could be coming
Digital currencies often rise together in value. And what could give digital currencies a spark in the near future is the approval of a spot Bitcoin (BTC -2.46%) exchange-traded fund (ETF). It would be a first for the crypto world. An ETF would make it easier and more accessible for people to invest in crypto.
The more money that is in crypto, the more potential there is for Bitcoin, Shiba Inu, and other coins to rise in value. And it may not take long before that approval comes in, with some analysts projecting that regulators may give the green light as early as January.
Data from Alphabet's Google Trends shows that searches for "bitcoin etf" started to spike in June and again toward the end of 2023. And since June, the value of Bitcoin has risen by close to 60%, while Shiba Inu's value has climbed by more than 20%.
Shiba Inu remains one of the most popular coins in the world
What works in Shiba Inu's favor is that it's one of the most popular cryptocurrencies out there, which means if Bitcoin and crypto in general is rising in popularity, Shiba Inu's value is likely to rise as well. Shiba has a market cap of $6.2 billion, making it the 16th most popular cryptocurrency, according to data from CoinMarketCap. The total crypto market is worth about $1.7 trillion, which would put Shiba Inu's market share at 0.37%.
Another factor that works in its favor is that Shiba Inu operates on the Ethereum network, which means it does have some utility besides just being a meme coin. It can be used in decentralized apps and in smart contracts. And as interest grows in crypto, its popularity, combined with its utility, could make it one of the better-performing coins.
Shiba Inu is still a highly speculative buy
A big challenge with crypto, specifically meme coins such as Shiba, remains the ability to predict where it may go in the future. The approval of a Bitcoin ETF could spark a rally, but that alone may not result in a big uptick in Shiba Inu's value. While the price of Bitcoin has been rising sharply, Shiba Inu has been lagging badly behind.
The big reason for believing that Shiba Inu could be a millionaire-making investment is for the potential for it regain to the level of excitement it generated in 2021. But its recent performance suggests that even with the growing optimism surrounding crypto, it may no longer have the same potential to surge in value that it did just a few years ago.
Investors shouldn't expect miracles from Shiba Inu
There are a lot of coins for crypto investors to choose from, and it's hard to make a case that Shiba Inu will do better than other, more popular coins, even if a Bitcoin ETF obtains approval from regulators. While there's the potential for Shiba Inu to take off in value along with Bitcoin, investors certainly shouldn't expect to become millionaires from investing in the meme coin. It's a very risky asset to put in your portfolio, and there isn't a compelling reason at this point to suggest that it will make you rich or that it's a better investment than Bitcoin itself.
