Shiba Inu (CCC:SHIB-USD) was among the leaders in cryptospace last year. Despite the problems in the last few months, Shiba Inu has increased by more than 47,000,000%. Although it has struggled with consumer acceptance from an early age, it seems to be building usability for a more stable runway for growth. However, its small use cases will not have much impact once SHIB-USD recovers.
Shiba Inu quickly became a popular meme token last October. If we had invested some change in Shiba In last year, we would have had wealth in our hands. However, the coin, similar to the rest of the cryptocurrency market, has struggled to establish itself.
Speculation will continue to drive the price of SHIB-USD in the near future. Due to price fluctuations, it is difficult for companies to accept, despite the efforts of its developers. However, it would be better to bet on assets that boast strong foundations in such difficult times in cryptospace.
Is there enough usability?
Gone are the days when Shiba Inu was just a speculative fly. Recent events have shown that developers are becoming increasingly serious about a stable path for cryptocurrencies. Last month, the Flexa payment network added Shiba Inu as a payment option for its merchants. Some of the largest companies in the world use the payment network, which seems like a big step forward for crypto.
In addition, as early as July, ShibaSwap gearbox started. The stock market increases the liquidity of SHIB-USD and allows its users to earn recurring income by investing their tokens. It also forces investors to keep the crypt for a much longer period.
In addition, companies such as Ask your doctor in AMC Entertainment (NYSE:AMC), they also jumped on a Shiba Inu wagon. However, the crypto is difficult to accept as a payment option, given its high volatility. Merchants are looking for predictability, which is impossible with such assets. In addition, the founder is Shiba Inu Ryoshi recently discussed the development of the metaverse with SHIB-USD being the main intermediary.
Although Shiba-In has a few more use cases than before, it is difficult to see how the currency could be stabilized. Given the price movements we see in the crypto sector, it’s hard to feel dizzy about such an asset.
Staying in the bear market
Bitcoin (CCC:BTC-USD) Bear run has weakened the crypto space, and billions of dollars have been wiped off the market in recent weeks. The industry has lost more than 30% of its value in the last few months. As the market spins, meme coins like the Shiba Inu fall, raising the question of their ability to withstand the bear market.
To be fair, even the most fundamentally healthy cryptocurrencies have been under attack in the last few months. However, you wouldn’t want to bet on cryptocurrencies like Shiba Inu when the chips fell. These speculative cryptocurrencies can lose a lot of value in almost a short time. Although Shiba Inu has developed a lot of usability lately, it’s still not enough to move the needle in a meaningful way. In addition, if you add bear market pressures, a few use cases here or there won’t change much.
Bottomline on Shiba Inu
Shiba Inu had an exciting year in 2021 when its value increased by incomprehensible levels. However, much of this gain has been lost in recent months as the crypto market moves into bear territory. In such difficult times, it is difficult for investors to bet on speculative coins such as SHIB-USD.
Muslim Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article at the date of publication. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication
Muslim Farooque is an avid investor and optimist at heart. The lifelong gamer and technology enthusiast has a special affinity for technology inventory analysis. Muslim holds a degree in applied accounting from Oxford Brookes University.