Ethereum Recently, whales are flocking to last year’s star meme token, the Shiba Inu. (SHIB 1.24% )... Cryptocurrencies have fallen 33% year-to-date, but increased by a staggering 45,000,000% in 2021.
Is the rebound first as Ethereum tycoons are looking at the Shiba Inu? Should you join those whales and dive into this hot spot cryptocurrency now?
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Largest holder
First of all, “whales” are investors who own a large amount of cryptocurrencies. In this case, we are especially talking about people who have Ethereum. Bitcoin Ethereum may be the largest and most established cryptocurrency, but new tokens continue to be launched rapidly and their list is now over 18,000.
Today, the Shiba Inu is the third largest holding of Ethereum whales, according to Whale Stats, a website that specializes in following the 100 largest Ethereum wallets.
Shiba Inu is very cheap, so it’s clear that it’s attractive. Even after the massive profits of 2021, it trades for less than $ 0.000023-100 cents. This low rating opens the door to a wide range of investors. And as more and more people buy Shiba Inu, token owners can get more and more profits. So whales may be betting on attracting investors again to the Shiba Inu’s ultra-low prices, as was often the case last year.
Whales may also bet on two potential catalysts. This year, Shiba Inu plans to launch a Layer 2 scaling solution and enter the Metaverse.
First, let’s check out a scaling solution called Shibarium. Currently, as a token of the Ethereum blockchain, Shiba Inu faces the same problems as Ethereum. It has high transaction costs and network congestion. When the Shiba Inu token moves to Shiba Inu, these issues should be a thing of the past. Regarding the Metaverse, Shiba Inu recently announced that it will soon begin selling virtual land. The name of the Metaverse project has not yet been revealed, but it is promised to be revealed soon.
Short-term boost
Both of these projects have the potential to boost the Shiba Inu. And if they are successful, profits can be made at certain points in the future.
Now let’s get back to the question. Need to track down Ethereum whales and invest in Shiba Inu? Like other cryptocurrencies, Shiba Inu shares good and bad days. There is always the possibility of selling tokens and making a profit by buying at the right time and seeing their value increase, for example in the positive news about Shibarium.
But I’m looking at the question from a long-term investment perspective. And from there, the scenery is not so bright. The Shivalium and Metaverse projects are positive efforts. But they aren’t enough to help the Shiba Inu stand out from their rivals. Many other players are already reshaping the world of business and entertainment. They run decentralized applications (dApps) throughout the industry. Through these, people can buy insurance, lend money, and invest.
The main uses of Shiba Inu are trading, staking and payment with a limited number of merchants. There is nothing to show that this will change anytime soon. This means that there is no specific reason to believe that the Shiba Inu will be the winner of tomorrow’s cryptocurrencies. That’s why it’s a good idea for the rest of us to watch from the water’s edge when the Ethereum whale jumps into the Shiba Inu.
This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Advisory Service. We are miscellaneous! Asking investment papers, even our own, helps us all think critically about investment and make decisions that help us to be smarter, happier, and richer. increase.
