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Is Shiba Inu Going to Make You Richer?

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Shiba Inu ( SHIB -6.79% ) is one of the fastest-growing cryptocurrencies of all time, soaring more than 41,016,168% since late 2020. While its price has taken a hit in recent weeks (falling more than 73% from its peak), some investors still believe in its potential. In addition, Shiba Inu developers have made strides to improve the cryptocurrency, even announcing that it will be involved in the metaverse.

Is Shiba Inu going to make a comeback? If so, could investing right now make you richer? Here’s what you need to know.

Shiba Inu dog lying on a bed.

Image source: Getty Images.

Will Shiba Inu surge again?

Shiba Inu’s developers have made an effort to give the cryptocurrency more utility, which is key to its success. Previously, Shiba Inu had few real-world uses, which made it difficult for it to continue growing.

Recently, though, developers revealed that it would enter into the metaverse with its new project, Shiberse. This virtual world will allow users to interact in digital communities, buy virtual goods and services via non-fungible tokens (NFTs), and even purchase virtual land.

Everything in this metaverse will require the use of Shiba Inu tokens. If Shiberse succeeds, the cryptocurrency will likely thrive, as well.

A few risks to consider

These new developments could make Shiba Inu a tempting investment. Keep in mind, though, that there are still plenty of risks to consider, and just because the cryptocurrency is entering the metaverse doesn’t necessarily mean it will surge again.

Outside of the metaverse, Shiba Inu still has very little real-world utility. Unlike competitors such as Ethereum and Solana, Shiba Inu is not a programmable blockchain that can host smart contracts. Rather, it’s a payment coin that’s primary use is as a form of exchange.

Very few merchants accept cryptocurrency as a form of payment, and those that do are more likely to accept Bitcoin than Shiba Inu. This will make it challenging for Shiba Inu to grow, as it will need a serious edge to compete with Bitcoin.

Shiba Inu will also face plenty of competition within the metaverse. Because the metaverse is one of the hottest topics in investing right now, many cryptocurrencies are scrambling to establish themselves. In order to stand out, Shiba Inu will need to create a major advantage over its competitors.

Is Shiba Inu right for you?

This doesn’t necessarily mean that Shiba Inu is a bad investment. However, it will need to continue improving if it’s going to stay relevant over the long term. There’s a lot of competition within the crypto space, and although Shiba Inu has made strides, it still lacks a strong advantage.

This makes it a high-risk investment, and it’s important to understand that risk before you buy. Shiba Inu is one of the most volatile cryptocurrencies out there, and there’s a chance you could lose your entire investment.

Before you invest, consider how much risk you’re comfortable with. If you have money you’re not worried about potentially losing, you may choose to invest a little in Shiba Inu just in case it does skyrocket again. Otherwise, you may be better off sticking to more established stocks or cryptocurrencies.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. 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.

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