After a little over a year since its debut, online business directory Cryptwerk notes that only 88 mostly obscure companies accept SHIB as a form of payment. This is such a small number that it’s fair to suggest Shiba Inu has no real-world use outside of a crypto exchange. The launch of decentralized exchange ShibaSwap in July 2021 is a third reason Shiba Inu has been creating a lot of buzz. While staking is nothing new, it could encourage investors to hang onto their Shiba Inu coins for longer periods of time. But there’s been something of a changing of the guard over the short term. Over the past couple of years, a number of brand-name cryptocurrencies have run circles around the stock market.
Even though the largest cryptocurrency by market cap has substantially increased in value over the past decade, it’s also endured three pullbacks of at least 80% over that stretch. With the digital currency space reliant on intangible factors, such as emotions and technical analysis, it’s easy for highfliers to quickly become yesterday’s news. For well over a century, investing in the stock market has been one the smartest ways to get rich. While stocks won’t be the top-performing investment vehicle every year, the average annual return for equities trounces the likes of bonds, oil, gold, and housing, over the very long term. With Bitcoin surging throughout the second-half of the year, shares of the company caught fire. But in 2021, shares of Bit Digital are down 51%, which is actually off its low of down nearly 81% in mid-July. Compared to Shiba Inu, Dogecoin looks like a broadly accepted digital token.
Given the volatility inherent in the crypto market, it shouldn’t come as a surprise that traders are actively looking to dive in and out of their positions for a short-term profit. But for a digital token that’s gained more than 5,100,000% since August 1, 2020, a six-day holding period implies that there’s nothing truly fundamental or sustainable behind these moves. Rather, emotions and tweets seem to be the driving forces behind SHIB’s movements. The thing about emotions is they can change at the drop of a pin in the investing realm. If Shiba Inu is unable to maintain the same buzz that’s grown its community at a rapid clip, disinterest, as evidenced by its menial average holding period, could quickly undo its massive gains. Bitcoin is a digital currency first described in a 2008 paper by pseudonymous developer Satoshi Nakamoto, who called it an anonymous, peer-to-peer, electronic payments system. Bitcoin creation and transfer is based on an open source encryption protocol and is not managed by any central authority. Each bitcoin is subdivided into 100 million smaller units called satoshis, defined by eight decimal places.
Another reason to be extremely leery of Shiba Inu is the average holding time of six days, according to data from Coinbase. To be fair, even the most prominent digital currencies have minimal use outside a cryptocurrency exchange. For example, Dogecoin is being accepted by a little over 1,700 businesses worldwide, including movie theater chain AMC Entertainment. A number of prominent crypto exchanges now allow investors to buy and sell the 20th largest token by market cap, including CoinbasePro. There’s little question SHIB’s stratospheric May run-up played a role in putting it on the radar of crypto exchanges. Read more about BTC to USD here. This increased ability to buy Shiba Inu has improved its liquidity and built up its community. Data from Etherscan on Oct. 14 showed nearly 729,000 addresses owned Shiba Inu. Click on the “Group converter” link to convert a group of numbers all at one time.
The Average Holding Period Is Less Than A Week
This Bitcoin to US Dollar currency converter is updated with real-time rates every 15 minutes as of Dec 19, 2021. Arguably the single biggest knock against the crypto markets’ hottest coin is its lack of real-world utility. Over the past couple of years, cryptocurrencies have handily outpaced the stock market. Yet in spite of these catalysts, Shiba Inu could be on the verge of having its bubble burst any day. While it’s not uncommon for digital currencies to be volatile, Shiba Inu may wind up losing the vast majority of its value in the months that lie ahead for three reasons. Tweets and investor emotions have led Shiba Inu to jaw-dropping gains in a little over a year. Shiba Inu has gained more than 5,100,000% since its August 2020 debut, but darker days may lie ahead.