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Maker And Shiba Inu: 2 Cryptocurrencies Offering Potential Upside

By Andy HechtCryptocurrencyJun 04, 2021 03:08AM ET
www.investing.com/analysis/maker-and-shiba-inu-2-cryptocurrencies-offering-potential-upside-200584008
Maker And Shiba Inu: 2 Cryptocurrencies Offering Potential Upside
By Andy Hecht   |  Jun 04, 2021 03:08AM ET
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This article was written exclusively for Investing.com

  • After the correction, crypto devotees are sniffing around for bargains
  • Over 10,200 tokens to choose from
  • Only the strong are likely to survive - A market cap of over $3 billion puts a token in the top 0.39%
  • SHIBA INU is not Dogecoin, but it is a top tier at number 31
  • Maker is right behind at 33

For volatility junkies that thrive on wide price variance, few markets in history have offered the head-spinning moves as the burgeoning cryptocurrency asset class. As of June 2, Bitcoin (BTC) remains the leader of the asset class, holding 41.6% of the entire crypto market value. If you add in Ethereum (ETH) with a value that is 18.6% of the total, over 60% of the value is in the hands of the two leaders. Within that remaining 40%, there are some diamonds in the rough. While most will eventually disappear into cyberspace, others could provide incredible returns. Investors should only spend capital they are willing to lose as risk is always a function of potential rewards.

The search for Bitcoin and Ethereum-like returns means the risk is equal to the entire investment. For traders, liquidity is critical as it allows for reasonable bid-offer spreads for the execution of buy and sell orders. Liquidity is a function of a market’s size, so the tokens with values over the $1 billion level offer the best potential for trend-following and other trading pursuits. Volatility and liquidity are an attractive combination as they combine to create opportunities. SHIBA INU (SHIB) and Maker (MKR) are two tokens in the top tier, with market caps at levels that create liquidity during normal markets.

After the correction, crypto devotees are sniffing around for bargains

Elon Musk’s decision to do an about-face on accepting Bitcoin for Tesla's (NASDAQ:TSLA) EVs because of the carbon footprint of mining triggered selling at over the $60,000 level. China’s ban on cryptocurrencies as it prepares to release its digital yuan was the factor that caused Bitcoin to halve in value and pushed the asset class’s market cap lower.

Bitcoin Daily
Bitcoin Daily

Source: CQG

The chart shows the severe correction in Bitcoin futures as the June contract dropped from a high of $66,450 on Apr. 14, the day of the Coinbase (NASDAQ:COIN) listing, to a low of $30,275 on May 19.

Ethereum Daily
Ethereum Daily

Source: CQG

Ethereum’s value corrected from $4,442 on the June futures contract on May 12 to a low of $2,077.50 on May 24. At around $37,700 and $2,720 on June 2, Bitcoin and Ethereum remain closer to the recent lows than the high.

The parabolic rallies in cryptocurrencies in 2021 were nothing short of incredible. The trajectory of gain led to severe corrections over the past weeks as gravity became a powerful force.

Over 10,200 tokens to choose from

The number of new entries in the asset class continues to rise each day as new cryptocurrencies come to market. While there are over 10,200 tokens in the asset class, only two have market caps over $63 billion. Nine were worth over $20 billion as of June 2, and fifteen had market caps over the $10 billion level. Eighty-five tokens were worth more than $1 billion, which is less than 0.83% of the number of tokens circulating in cyberspace. While some of the other over 10,000 tokens could deliver massive returns, the odds favor that most will wind up worthless dust collectors in computer wallets.

Only the strong are likely to survive - A market cap of over $3 billion puts a token in the top 0.39%

One of the most significant characteristics for traders is liquidity, as the ability to buy and sell depends on a robust level of market participation. The higher the market cap, the greater the chances of survival over the long term. Around 0.40% of the cryptocurrencies have market caps over the $3 billion level. SHIBA INU and Maker have the critical mass necessary to attract trading and liquid investment activity.

SHIBA INU is not Dogecoin, but it is a top tier at number 31

The SHIBU INU dog is the meme associated with Dogecoin (DOGE). This cryptocurrency has received lots of PR because of support from Elon Musk, Snoop Dog, Mark Cuban, and other celebrities. Meanwhile, the crypto that began as a joke is currently the sixth-leading token with a market cap of over $55 billion.

SHIBA INU is a decentralized crypto, created in August 2020 by an anonymous person, “Ryoshi.” SHIB is an ERC-20 token on the Ethereum blockchain, based on Dogecoin, and brands itself as “the Dogecoin killer.” The website states SHIB is “decentralized meme tokens that grew into a vibrant ecosystem. ShibaSwap. Fun Tokens. Artist incubator, Growing 440+ community & more on the horizon.”

While DOGE began as a joke, SHIB is a derivative of the joke. Meanwhile, on June 2, SHIB was the thirtieth leading token with an over $3.74 billion market cap.

Shibu Daily
Shibu Daily

Source: CoinMarketCap

The chart shows that the SHIB token rose from less than $0.00000001 in August 2020 to a high of $0.00003431 on May 10 and was at the $0.0000095 level on June 2. For those looking to collect lots of tokens, $1 buys over 105,000 SHIB tokens at the June 2 price level.

Maker is right behind at 33

Right behind SHIB, the derivative of the crypto that began as a goof, sits Maker, ranking at number thirty-one on the crypto hit parade. Maker is a governance token that underpins the first “stablecoin” on the Ethereum platform, called DAI; Stablecoins such as DAI is a cryptocurrency backed by reserve assets. MKR tokens are minted or burned in accordance with price fluctuations. MKR’s website states Maker is a “better, smarter currency - DAI can be used by anyone, anywhere, anytime.” It goes on to highlights MKR is:

The world’s first unbiased currency. DAI is a stable, decentralized currency that does not discriminate. Any individual or business can realize the advantages of digital money.”

On June 2, MKR had a $3.559 billion market cap, with the tokens trading at the $3,590 level.

Maker Daily
Maker Daily

Source: CoinMarketCap

The chart shows MKR rose from $24.45 in late January 2017 to a high of just over $6,000 in early May. At the $3,590 level, MKR is another success story in the cryptocurrency asset class, as the price was over 146 times higher than in early 2017.

SHIB and MKR are two candidates for trading as they have the critical mass and market caps that create liquidity. When it comes to investing in either of the tokens, the advice is the same as with any of the over 10,200 cryptos. Only invest what you are willing to lose.

Maker And Shiba Inu: 2 Cryptocurrencies Offering Potential Upside
 

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Maker And Shiba Inu: 2 Cryptocurrencies Offering Potential Upside

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Comments (17)
Solomon Lalani
Solomon Jun 10, 2021 12:43PM ET
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There currently are 400 Trillion SHIB INU in circulation.  If the price reaches even 0.01, the market cap would become USD 4T! All crypto exchanges would go bankrupt paying even this amount to SHIB owners!  At $1, the market cap of SHIB will be USD 400T (based on existing supply), that is, equivalent to all global wealth as at end 2019 (per Credit Suisse). The total supply of SHIB is projected to be 1 Quadrillion (2.5x more supply waiting than currently in circulation). At this fully supplied level, at 0.01 price, the market cap of SHIB will be USD 100T (~5 times annual US GDP); and at $1 at fully supplied level, all central banks of the world will go bankrupt printing currencies paying to SHIB owners.  I am not saying crazy things don't happen, but this is too crazy-sounding even from any Crypto standards!  SHIB price may still go many folds over just like it happens in the crypto universe, but I think the price of 0.01 is also far far cry.
Barak Bii
Barak Bii Jun 07, 2021 8:37AM ET
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how can i start a business???
FAUSTO ALDABA
FAUSTO ALDABA Jun 06, 2021 4:39PM ET
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This coin is not for hodling long. Come on guys! it has no purpose nor environment! It could possible pump if BTC pump in the near future but it is doomed to stay low. Sell as soon as it hits your target (serious target) it will not go to $1, I repeat, it will NOT go to $1. I even go to as far as, It will not get to ATH again.
danial dehghani
danial dehghani Jun 06, 2021 4:39PM ET
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Keeping it for 6 months.. how about it.?
H D Tv
H D Tv Jun 06, 2021 4:39PM ET
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what is value when btc start ?
Rupert Murdoch
Rupert Murdoch Jun 06, 2021 4:39PM ET
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U can do that if you like, the shiba community will hold, hence the resilience.
Sissy Horn
Sissy Horn Jun 05, 2021 4:36PM ET
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Where and how do I buy this it isn’t on Coinbase or Robinhood.
Kwabena Sonful
Kwabena Sonful Jun 05, 2021 4:36PM ET
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Get it from BINANCE
Dilshad Chowdhury
Dilshad Chowdhury Jun 05, 2021 4:36PM ET
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Bit mart
H D Tv
H D Tv Jun 05, 2021 4:36PM ET
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binance
H D Tv
H D Tv Jun 05, 2021 11:17AM ET
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i m holding shib 75000000 wait for 1$
Amit Jadeja
Amit Jadeja Jun 05, 2021 11:17AM ET
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how shib purchase ?
gaddam prashanth
gaddam prashanth Jun 05, 2021 7:47AM ET
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shiba inu ll reach 1dollor in this year
Piyush Srivastava
Piyush Srivastava Jun 05, 2021 7:47AM ET
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i hope so......
Adnan Jan
Adnan Jan Jun 05, 2021 7:47AM ET
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can i ask you based on what you said this? i want it to reach 1$ too but i want some proof
abba gama
abba gama Jun 05, 2021 2:47AM ET
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i'm not selling mine until it reaches $1
Rob Gunn
Rob Gunn Jun 05, 2021 2:47AM ET
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1 dollar??? how about 10 dollars!!!
Patrick Yau
Patrick Yau Jun 04, 2021 3:37PM ET
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Highly Recommended,tell All your friends and family. Shiba Inu will reach $1, invest what you can afford. Will have very good return.$$$$$$
Rupert Murdoch
Rupert Murdoch Jun 04, 2021 2:03PM ET
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Hodl, this coin will do very well long term. Invest as little as you can and encourage friends and family.
Mritunjay For iPad
Mritunjay For iPad Jun 04, 2021 1:17PM ET
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17651038 I am not selling these $HIBA until they reach 0.01$  HODLing
Michael LaBarbera
Michael LaBarbera Jun 04, 2021 11:46AM ET
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They have "critical mass," what does that mean? Because they have high liquidity, invest? Come on, you have to do better than this.
Mr Umair
Mr Umair Jun 04, 2021 9:13AM ET
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HODL 2000000000000SHIB OK
EHDDyce FC
EHDDyce FC Jun 04, 2021 9:13AM ET
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Holding the Chinese bag lol. They basically rug pulled yall and volume is going down. The whales still have a LOT to dump on the next pump you get.
Mr Umair
Mr Umair Jun 04, 2021 9:11AM ET
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hello i am umair i am pakistan iam poor plz help me my family
Wilfredo Veras
Wilfredo Veras Jun 04, 2021 9:11AM ET
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Hi bot. Get a job.
H D Tv
H D Tv Jun 04, 2021 9:11AM ET
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buy this only 700usd and hold only for 1 year
titirisca aurelian
titirisca aurelian Jun 04, 2021 8:16AM ET
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catch that Dog(e), Shiba :)
Маша Иванова
Маша Иванова Jun 04, 2021 8:01AM ET
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HODL 206000000 SHIB
Ori Horenstein
Ori Horenstein Jun 04, 2021 7:48AM ET
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Just bought 60000000 shib
Louis Moore Bacon
Louis Moore Bacon Jun 04, 2021 5:06AM ET
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Efytfghuijhfdc
 
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