Shiba Inu (SHIB 2.50%) is the epitome of market speculation. Those bold and lucky enough to have gambled on the unproven cryptocurrency at its launch back in August 2020 have been wildly rewarded. However, Shiba Inu has been extremely volatile along the way.
Investors who are looking to take on more risk might be wondering if buying Shiba Inu is a smart move. Should you invest $1,000 in this meme token right now?
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A house built on hype
Shiba Inu is currently the 21st most valuable crypto, with a market cap of $7 billion (as of Sept. 30). But it really serves no purpose, despite having a metaverse and layer-2 solution. The token has stayed alive for this long simply because of hype, as any public mentions or positive developments with the network can cause the price to soar. The issue is that the excitement quickly fades, as speculative behavior isn't durable.
Lack of long-term potential
It also doesn't help that Shiba Inu currently trades a jaw-dropping 87% below its peak, a high-water mark established during the bubble of 2021. This negative trend I believe points to the market's waning confidence in Shiba Inu's long-term viability. Given its lack of real-world utility and adoption, it's difficult to make a legitimate investment case for Shiba Inu.
Investors are better off focusing their attention on more promising digital assets.
