With a $6.6 billion market cap, Shiba Inu (SHIB +2.41%) is one of the biggest meme coins in the crypto universe. It has been a wild year so far, with SHIB losing roughly 50% of its value as of June 23.
However, there are two compelling reasons to buy before 2025 is finished. Let's take a look at Shiba Inu's potential growth catalysts.
CRYPTO: SHIB
Key Data Points
2 reasons to buy Shiba Inu right now
Have some extra cash you're looking to do something fun with? Shiba Inu is the perfect fit. It has been a popular crypto token for nearly five years, showing extreme volatility at times.
In 2021, SHIB's value skyrocketed by more than 1,000% over the course of just a few months. This type of run has happened several times over its trading history. Of course, the opposite has occurred as well -- this year's 50% drop is a testament to that potential.
Still, there's no doubt that Shiba Inu is a fun asset to buy and sell for those with extra cash who are looking for a bit of entertainment. Is there any more lightning left in Shiba Inu's proverbial bottle? Catching the next big pop could be very lucrative.
It's not just the expectation of financial profit and pure fun that makes Shiba Inu an interesting buy in 2025. Researchers have also found that meme coins and meme stocks can fuel social connections, adding another layer to their allure.
"During the pandemic, people were starved for interaction and entertainment," Bloomberg columnist Matt Levine observes. "Trading GameStop became a social activity, a way to have fun and connect with others." Due to this, a recent article from the University of Pennsylvania highlighted "how social media and collective action can create an entirely new kind of valuation."
Buying Shiba Inu this year can provide you with the potential for fun and social connection. There's nothing wrong with that. But if you want to build wealth in 2025, and the decades to come, there's a far better crypto asset to consider.
Image source: Getty Images.
Is Bitcoin superior to Shiba Inu?
Bitcoin (BTC +3.28%) is the original crypto asset. Launched in 2009, it provided the blueprint for other coins to follow and has remained the largest crypto asset ever since, with a total market cap of roughly $2 trillion today.
Like Shiba Inu, Bitcoin doesn't abide by traditional valuation standards. It doesn't represent an interest in any financial income stream, nor does it give you rights over any tangible asset like property. Instead, its value is derived simply from Bitcoin being Bitcoin.
This is nothing new. Gold is very similar. Just 10% of all the gold that has been mined is used for industrial or technological purposes. The rest is largely dominated by jewelry and financial investments. Investors hold gold not because it will produce more gold, but because it has long been recognized as a safe haven asset for investors. Like fiat money itself, gold retains its value simply because everyone agrees that it's valuable.
Right now, markets agree that both BTC and SHIB have value, as evidenced by their multi-billion and multi-trillion-dollar market caps. But which crypto asset will retain its value most over the long term?
My bet is with the biggest: Bitcoin. As the first crypto asset, Bitcoin has a reputational advantage that can never be surpassed. Plus, its existing buy-in among both retail and institutional investors is unrivaled.
So while Shiba Inu can be a fun place to park some extra cash for entertainment purposes only, Bitcoin is far more similar to gold at this point. That makes it a superior holding for long-term investors.
