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Shiba Inu has no use for hanging on when the chips are down


shiba inus (CCC:SHIB-USD) was among the leaders in the crypto space last year. Despite struggling over the past few months, Shiba Inu has grown over 47,000,000%. Although it struggled with early consumer adoption, it seems to be creating utility for a more stable growth track to come. However, its few use cases will not have much impact when SHIB-USD bounces back.

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Shiba Inu quickly became a popular meme token in October last year. If you had invested any money in Shiba Inu last year, you would have a fortune in your hands. However, like the rest of the crypto market, the coin struggled to get off to a good start.

Speculation will continue to push the price of SHIB-USD higher for the foreseeable future. Its fluctuating price makes it difficult for companies to adopt it, despite the efforts of its developers. However, it would be better to place your bets on assets that exhibit strong fundamentals with such troubling times in the crypto space.

Is there enough utility?

The days when the Shiba Inu was just a speculative fad are over. Recent developments have shown that its developers are increasingly serious about a stable path for crypto. Last month the Flexa payment network has added Shiba Inu as a payment option for its merchants. Some of the biggest companies in the world are using the payment network, which seems like a major breakthrough for crypto.

Additionally, in July, the ShibaSwap exchange was launched. The exchange increases the liquidity of SHIB-USD and allows its users to earn recurring income by staking their tokens. It also forces investors to hold the crypto for a considerably longer period.

Additionally, companies such as ask the doctor, and AMC Entertainment (NYSE:CMA), also hopped on the Shiba Inu bandwagon. However, it is difficult for crypto to gain widespread acceptance as a payment option, given its massive volatility. Traders seek predictability, which is impossible with such an asset. Additionally, Shiba Inu founder Ryoshi recently discussed developing a metaverse with SHIB-USD as a major enabler.

Although Shiba-Inu have a few more use cases than before, it’s hard to see how they could stabilize currency. With the price movement we see in the crypto industry, it is hard to feel giddy with such an asset.

Resist the bear market

Bitcoins (CCC:BTC-USD) Bear Run has weakened the crypto space as billions of dollars have been wiped from the market in recent weeks. The industry stalwart has lost more than 30% of its value in the past two months. With the market faltering, coins such as Shiba Inu are falling, raising the question of their ability to withstand the bear market.

To be fair, even the most fundamentally sound cryptos have been hammered over the past few months. However, you wouldn’t want to bet on cryptos like Shiba Inu when the tokens are down. These speculative cryptocurrencies can lose a lot of value in no time. Although Shiba Inu has been building a lot of utility lately, it’s still not enough to move the needle significantly. Also, when you add the bear market pressures, a few use cases here or there won’t make much of a difference.

Conclusion on Shiba Inu

Shiba Inu has had a turbulent 2021 which has seen its value rise to unfathomable levels. However, much of those gains have been lost in recent months as the crypto market moves into bearish territory. In these difficult times, it is difficult for investors to bet on speculative coins such as SHIB-USD.

As of the date of publication, Muslim Farooque had (neither directly nor indirectly) any position in the securities mentioned in this article. Opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines

Muslim Farooque is a passionate investor and an optimist at heart. A long-time gamer and tech enthusiast, he has a particular affinity for analyzing tech stocks. Muslim holds a Bachelor of Science in Applied Accounting from Oxford Brookes University.


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