$100 Invested in Shiba Inu Would Be Worth This Much Today

Let’s put the recent rise of Shiba Inu (CRYPTO:SHIB) into perspective for investors who don’t really fully understand the picture.

| More on:
money cash dividends

Image source: Getty Images

Among the many cryptocurrencies that have taken the market by storm this past year, meme tokens such as Shiba Inu (CRYPTO:SHIB) really have shaped how many retail investors think about cryptocurrencies. Indeed, the growth this token has seen in such a short amount of time has been something to behold.

On the downtrend of late, Shiba Inu bulls may wonder what’s in store for this token. Let’s take a look at what a $100 investment in this token a year ago would translate to for investors.

Shiba Inu posted a growth rate that’s unbelievable to many

As with many meme tokens, Shiba Inu got its start as a community-oriented token. With little value outside of edge cases, Shiba Inu’s valuation has soared alongside investor sentiment.

Just how high has this token soared?

Well, over the past year, Shiba Inu is up more than 21,000,000%. This would make a $100 investment in SHIB a year ago worth $21 million.

Now, what’s perhaps even more incredible is that this token has lost approximately three-quarters of its value since its peak in late 2021. Accordingly, most of these gains took place in the matter of a few months, allowing many investors to hit the lottery in a very short window of time.

Is there anything special about this token?

Okay, so this meme token has officially mooned. The question is — what’s behind that move?

Well, it’s not so clear what’s driven this token other than simply intense retail buying pressure. Like any asset, supply and demand from investors dictates price. If enough participants in the market take the view that something has unstoppable momentum, we can see what happened with Shiba Inu and even other meme stocks.

There’s nothing particularly special about Shiba Inu relative to its meme peers or other tokens. This project is built on the Ethereum blockchain, like so many others. It’s got a dedicated trading site called ShibaSwap and other projects that are reportedly under development.

But for the time being, it’s generally perceived to be a momentum gauge for the market. Unsurprisingly, sentiment is down right now, as investors reassess how much risk they’re willing to take on right now.

Bottom line

So, where does Shiba Inu go from here? That’s a good question.

I think the answer really depends on how manic or depressed sentiment is in the market. As we’ve seen to start 2022, most investors appear to be taking a risk-off approach to assets. For tokens like Shiba Inu, that’s not a good thing.

Accordingly, I think this token could see continued selling pressure, at least over the near term. Another 21,000,000% increase is almost certainly out of the cards. However, the crypto space is one where crazy moves happen all the time. Accordingly, this will be a fun token to watch this year.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald owns Ethereum. The Motley Fool owns and recommends Ethereum.

More on Investing

rain rolls off a protective umbrella in a rainstorm
Dividend Stocks

Building a $50,000 Portfolio That Can Weather Any Market Storm

This defensive investment portfolio uses three ETFs to ride out any recession.

Read more »

Two seniors float in a pool.
Retirement

Want to Retire Rich? 3 TSX Stocks to Add to Your Portfolio Now

These TSX stocks could deliver above-average returns in the long run, helping you build wealth over time and retire rich.

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

Top 3 TSX30 Winners: Understanding the Recent Stock Drop

Three TSX30 winners in 2024 have experienced price drops this year and continues to underperform due to massive headwinds.

Read more »

space ship model takes off
Dividend Stocks

Where to Put $12,000 in Today’s Market for Potential Long-Term Gains

There's no shortage of great investments that can provide potential long-term gains. Here's a look at three stellar options.

Read more »

Hand Protecting Senior Couple
Retirement

Avoid the OAS Clawback: Dividend Strategies Every Retiree Should Know

With a smart dividend strategy, the OAS clawback can be minimized or even avoided entirely for retirees. Here's how.

Read more »

Canadian dollars are printed
Dividend Stocks

How to Use $10,000 to Transform a TFSA Into a Cash Machine

Do you want growth and income? Consider these top investments that offer up monthly income in spades!

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

Building a $28,000 TFSA Portfolio One Contribution at a Time

Let’s take a look at how you can turn a $28,000 investment in a TFSA into a life-changing fund for…

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

Making Your $25,000 TFSA Investment Work Harder for the Long Term

This strategy reduces risk while still providing a solid return.

Read more »