After a steep price drop, what could catalyze dog-themed altcoin Shiba Inu (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 as a quest to burn the tokens is already underway. Moreover, the buzzworthy Ethereum (ETH-USD) Merge is likely to give SHIB a lift.
Just recently, Shiba Inu made not just one but two important 10x-potential lists. Faisal Humayun observed SHIB’s “big community” and value as a “deflationary token” — fair points, indeed. Meanwhile,
So, will crypto traders finally let Shiba Inu out of the doghouse? Sooner or later, the supporters’ dogged determination just might push this promising coin’s price above $1 once and for all.
What’s Happening With Shiba Inu?
Slightly over a year ago, Shiba Inu topped out at around $0.00008. More recently, however, it traded closer to $0.00001. Hence, a return to the 2021 peak and then a momentum-fueled push higher could conceivably get SHIB holders a 10x return on their investment.
That’s easier said than done, of course. Still, if you’re going to target 10x gains, the time to get in is after a high-conviction asset has crashed.
And if any altcoin is high-conviction, it would be Shiba Inu — or at least, there’s a thriving community that will stand by the token through its ups and downs. Part of this community is the team at SHIB burn tracker Shibburn, which frequently posts to social media.
For instance, in a Twitter (NYSE:TWTR) post from Sept. 16, Shibburn announced, “In the past 24 hours, there have been a total of 136,821,030 $SHIB tokens burned and 11 transactions.” This tweet has already received hundreds of likes on Twitter. The question remains, though: Why would people celebrate the destruction of these tokens?
It’s because a reduced SHIB supply means that inflation hopefully won’t be an issue for investors. Various reports indicate single-day burns of around 170 million or even 200 million Shiba Inu tokens — examples of constructive destruction at its finest.
Post-Merge, Shiba Inu Can Follow Ethereum’s Lead Higher
On Sept. 15, a landmark crypto-sphere event took place. It was the Merge, in which the Ethereum network finally had its “upgrade from the original proof-of-work mechanism to proof-of-stake.”
With this change, energy consumption on the Ethereum network is expected to decline by around 99%. InvestorPlace Financial News Writer Brenden Rearick further clarified that this change will “lower transaction times and gas fees for network users, making lots of investors happier.” So clearly, switching from proof-of-work to proof-of-stake has its benefits.
William White, an InvestorPlace contributor, connected the dots between the two tokens:
“The SHIB token, which means everything connected to it is powered by that network … One point worth noting is sharding. This will increase transaction speeds on the Ethereum blockchain. That could benefit SHIB as well with faster speeds on less gas fees.”
So, there you have it: Ethereum’s Merge will also benefit Shiba Inu users. With that, the SHIB price could follow ETH higher. White actually reported several notable price predictions, including one from DigitalCoinPrice implying substantial gains.
What You Can Do Now
Don’t get the wrong message here. Shiba Inu is volatile, and there’s no guarantee that it will provide 10x returns, or any returns at all.
That said, there are reasons to consider holding a very small position in SHIB. There’s a loyal community, along with a token-burn quest that should put inflationary concerns to rest.
Plus, Shiba Inu should benefit from the headline-grabbing Ethereum Merge. So, don’t load the boat on this volatile pup token, but think about a small position for community-driven, potentially powerful profits.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.