If You Bought $1,000 Of Shiba Inu When It Launched, Here’s What It Would Be Worth Today

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Shiba Inu (SHIB-USD) remains a top cryptocurrency many investors continue to follow. That's not necessarily because of this network's core utility, it's game-changing innovative technology, or some other secret sauce. Rather, it's the project's core community and speculative interest in this asset class that has driven most of its gains. Incredible gains, at that.

For investors who put $1,000 to work in Shiba Inu when the project first traded publicly in late-2020, investors would have been blessed with returns of 989,480% (at the time of writing), or roughly $9.9 million. You read that right, nearly 10,000x your money. In other words, every $100 investment would have made you nearly a millionaire, each time over.

Of course, the question moving forward is whether the so-called “Shib Army” can drive such gains in the future. Unlike other assets that are typically bound by traditional laws of finance with respect to valuation multiples and fundamentals, cryptocurrencies can trade on a number of factors that have nothing to do with cash flows. Accordingly, for speculators, meme cryptos such as Shiba Inu will likely continue to be hot trading vehicles, given the added volatility that can be had in this space.

Let's dive into where Shiba Inu stands right now, whether there's anything under the hood worth considering, and what investors may want to make of the token's most recent moves.

Valuation History

Tick marks outweighs a crossmark on an imbalanced seesaw

Shiba Inu launched in August 2020 at a mere $0.0000000001725. The token then quickly surged to an all-time high in 2021, removing five zeros from its price. Currently trading at $0.00001318, SHIB has dropped more than 85% from its peak but still represents a staggering near-1 million percent increase from its launch price.

In its early days, a $1,000 investment in Shiba Inu (SHIB) would certainly have made an investor a millionaire right now. And with a potential crypto bull market ahead, Shiba Inu may certainly see higher prices ahead. But at this valuation, which rivals many mid-cap stocks on the S&P 500, there's little likelihood of a similar rally taking this token toward the most valuable asset in the world, which is what it would be in such a scenario.

A current investment of $1,000 in Shiba Inu would garner around 41.3 million tokens. Accordingly, for those looking to 10x their money from here, another "zero would need to be killed," marking a notable move in this asset's valuation toward $70 billion, a truly incredible sum.

Recent Struggles

People walking by a homeless man

Like many cryptocurrencies, Shiba Inu has struggled to establish a practical use beyond speculation. Without widespread acceptance as a transaction method, its extreme value fluctuations hinder its viability for businesses. Consequently, only about 940 merchants globally accept Shiba Inu for payments. So, in a world where utility-based metrics such as transaction volumes matter, Shiba Inu isn't gaining any brownie points from most investors.

That's not to say the Shiba Inu team is sitting on its heels. Developers have aimed to enhance Shiba Inu’s value by launching Shibarium, a Layer 2 solution to improve transaction speed and reduce costs on the Ethereum network. They also introduced Shiba Eternity, a digital card game, and are working on a metaverse project. However, progress on the metaverse has been slow, with its launch delayed.

I'm of the view that there's little under the hood to justify this token's current valuation. But again, Shiba Inu isn't an asset that's really valued on the basis of fundamentals. There's a certain hype element alive and well within the Shiba Inu community that's difficult to value, but clearly extremely important to this project's valuation. Until that goes away, it's going to be a hard asset to predict from a price perspective.

So, What Is Shiba Inu Going to Be Worth Moving Forward?

Image of a Shiba Inu dog

Exploring Shiba Inu's past struggles is certainly one thing, but it's important to keep such issues in context. Shiba Inu is clearly a speculative asset with a historical track record of absolutely skyrocketing on previous catalysts. Accordingly, recent impressive rally in Shiba Inu tied to Roaring Kitt's return to social media had led to a surge in excitement for this token. If similar catalysts materialize, there's no telling where this token could be headed from here.

It's simply an asset class I have no idea how to value. I have a feeling other investors have a similar take on this particular token.

Accordingly, outside of speculators and those with money they'd like to put into lottery ticket like bets, this is a token I'm going to happily watch from the sidelines, but it's not one I'm going to gamble on here.

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