Shiba Inu is, undoubtedly, the market’s best performer and the most popular cryptocurrency these days (SHIB).
Many mistook SHIB for SHI. A self-proclaimed Dogecoin killer, who gained popularity after the former began to appreciate. Unlike the rest, Shiba Inu quickly gained popularity and entered the top 100 coins in the cryptocurrency market by market cap.
SHIB sprang to prominence following the May price spikes for Dogecoin. Many Doge clones appeared at the time, many of which had no utility or functionality and were only designed to capture a part of its value to quickly make a lot of money.
But SHIB’s story went viral. Like the rest of the DOGE copycats, it cooled off, but now it is the buzz of the town. SHIB’s price has risen 100,000,000% since January 1st of this year. The cryptocurrency doubled in value. If you had invested $1 on January 1st, you’d be a billionaire (assuming you didn’t sell). It also seems to be recording new peaks virtually daily.
These are impressive numbers for a project that only began a year ago. Despite being one of the oldest cryptocurrencies, Dogecoin has 2.3 million followers, roughly 50% more. That is, SHIB has a considerable fan base.
The psychology of the masses is a fascinating phenomenon observed from afar in the bitcoin market.
A fascinating phenomenon to be recognized
A closer analysis of Shiba Inu’s social media comments reveals that the vast majority of the people that interact with them are like-minded and united behind a similar cause—riding the wave and being filthy rich with meme coin money.
SHIBArmy also unites them. It is evident in their social media contacts, which are far from SHIB but have a tenuous relationship.
While there is no question smart money, technical traders, and experts are riding the current parabolic advance, the vast majority of investors are retail-oriented—a few hundred dollars in hopes of being wealthy overnight. We’re talking about TikTok-inspired investors who think SHIB will be 1 cent and quickly calculate that their $50 will become $500K. (An example)
Shib’s Psychology on Retail Investors
The investors all succumb to excitement, momentum, and buzz. They do not perform their research, or if they do, they base their conclusions on someone with a large Twitter, Facebook, or Instagram following. It is SHIB now, SafeMoon a few months ago, and it could change tomorrow.
SHIB is now trading at about $0.000071. That is less than 14,000 SHIB for $1. Imagine that at $1. Imagine investing $100, and SHIB drops to a dollar. Do the same with $500 and $1000 — sums that many individual investors can afford to spend on the off-chance that something like this will happen.
Many people assume that when they go to the market. But the reality is significantly more complex. SHIB is no longer cheap.
Those with little or no investment expertise, let alone trading knowledge, may miss the underlying concept of total market capitalization. The current circulation supply of SHIB is 549,153,111,315,363, giving it a market valuation of $39 billion.
To simplify, if Bitcoin had the same market size today, one BTC would cost $2,068. Given the current BTC price, this may seem like a good deal. However, the difference is 30x (give or take). Your $1 investment in SHIB would be worth $30, not $1 million.
Regardless of the number of zeros preceding it, SHIB is now a million times more expensive than it was back in January.
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