After a sharp price drop, what could catalyze the dog-themed altcoin shiba inus (SHIB-USD) to post 10x returns? That’s the billion-dollar question, and two possible answers loom on the horizon. First, in a time of rapid inflation, Shiba Inu looks appealing because a quest to burn the chips is already underway. Moreover, the buzzworthy Ethereum (ETH-USD) The merger is likely to give SHIB a boost.
Just recently, Shiba Inu made not just one but two major lists of 10x potential. Faisal Humayun observed the “large community” of SHIB and its value as a “deflationary token” – fair points, indeed. Meanwhile,
So, will crypto traders finally let Shiba Inu out of the kennel? Sooner or later, the dogged determination of the supporters may well push the price of this promising coin above $1 once and for all.
What’s going on with Shiba Inu?
Just over a year ago, Shiba Inu was at around $0.00008. More recently, however, it traded closer to $0.00001. Therefore, a return to the 2021 high and then a momentum-fueled upside push could potentially offer SHIB holders a 10x return on investment.
That’s easier said than done, of course. Still, if you are aiming for 10x gains, the time to enter is after the crash of a high conviction asset.
And if any altcoin is high-conviction, it would be Shiba Inu — or at least there’s a thriving community that will stand by it through its ups and downs. Part of this community is the team of SHIB burn tracking Shibburnwho posts frequently on social media.
For example, in a Twitter (NYSE:TWTR) September 16 post, Shibburn announced, “In the last 24 hours there have been a total of 136,821,030 $SHIB burnt tokens and 11 operations. This tweet has already received hundreds of likes on Twitter. The question remains though: why would people celebrate the destruction of these tokens?
This is because a reduced SHIB supply means inflation will hopefully not be an issue for investors. Various reports indicate burns in a single day of around 170 million or even 200 million Shiba Inu chips – examples of constructive destruction at its best.
After the merger, Shiba Inu can follow Ethereum’s example above
On September 15, a historic crypto-sphere event took place. It was the merger, in which the Ethereum network finally had its “upgrade from the original proof-of-work mechanism to proof-of-stake.”
With this change, power consumption on the Ethereum network should decrease by around 99%. InvestorPlace Financial news writer Brenden Rearick further clarified that this change “will reduce transaction times and gas costs for network users, which will make many investors happier.” Clearly, then, moving from proof-of-work to proof-of-stake has its benefits.
William White, a InvestorPlace contributor, connected the dots between the two tokens:
“The SHIB token, which means everything connected to it is powered by this network… One point to note is sharding. This will increase transaction speeds on the Ethereum blockchain. It could also benefit SHIB with faster speeds with less gas costs.
So there you have it: the Ethereum merger will also benefit Shiba Inu users. With this, SHIB price could follow ETH higher. White actually pointed out several notable price predictions, including one from DigitalCoinPrice involving substantial gains.
What you can do now
Don’t get the wrong message here. Shiba Inu is volatile, and there is no guarantee that he will provide 10x returns, or any returns at all.
That said, there are reasons to consider holding a very small position in SHIB. There is a loyal community, as well as a token quest that should calm inflationary concerns.
Additionally, Shiba Inu stands to benefit from the Ethereum merger that is making headlines. So don’t load the boat on that volatile pup token, but consider a small position for potentially powerful community-driven profits.
As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.