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What $100/Week Investment on SHIB Since January Would Look Like Now

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By Christian Webster - - 5 Mins Read

 

Shiba Inu logo vector illustration
Photo | Shutterstock

 

 

People can buy cryptocurrencies using several methods. These methods may vary based on a trader's capital, strategy, or the potential of the asset in focus.

 

In a market where cryptocurrencies are mostly treading water, Shiba Inu (SHIB) finds itself in a rather uncertain boat.  New information shows that employing the dollar-cost averaging (DCA) strategy by investing $100 weekly this year may not have been entirely profitable for this particular cryptocurrency. 

DCA Strategy Explained

The DCA strategy involves investments by buying assets in predetermined intervals, without worrying too much about whether the prices were high or low at the time. People like it because it helps them feel less stressed about investing.

 

Consider this strategy as nourishing your chickens. You provide them with a specific amount of grains every day, with the hope that they will grow bigger and stronger. Occasionally, a farmer may notice some weaker chickens on the farm, but this does not deter them from continuing to feed them.

 

This is relatively how the dollar-cost average system works. Investors would always invest a certain amount into select assets notwithstanding how the price of the currency looks at the point of investment. This is very different from a one-time investment.

Shiba Inu Price Update 

Based on the latest information available, Shiba Inu's current trading rate is $0.0000074268. This indicates a 1.34% increase in the past day and a 0.80% increase over the past week. However, its performance over the last month is disappointing with a 6% drop.

 

Shiba Inu privce chart (30-day)
Shiba Inu 30-day price chart | Bybit

 

It's important to consider that factors that could potentially drive up the value of SHIB and make Dollar-Cost Averaging a profitable investment strategy are related to positive advancements within the ecosystem and the introduction of Shibarium. This layer 2 blockchain has gained a lot of attention since its recent release.

DCA-ing SHIB: The Reality Check

The Shiba Inu investment illustrates that DCA is not always a foolproof investment strategy. It may not shield investors from declining market prices, nor does it prevent them from investing during extended bull markets when asset prices are higher than during bearish periods.

 

To put it into perspective, suppose an individual had invested $100 worth of SHIB approximately at the same time every week since January 1, 2023. This would have resulted in a total investment of $3,900 spread across 39 weeks.

 

As of September 26, the value of this investment would have been approximately $3,091.71, representing a loss of as much as 20.73% compared to the initial investment, according to data from the analytics platform cryptoDCA.

Potential Catalysts for SHIB Growth

Despite concerns about decreasing whale numbers, there are positive factors that could boost SHIB's value and make DCA profitable.

 

The ecosystem of SHIB has seen some positive developments, such as the introduction of Shibarium, a layer 2 blockchain, which has generated substantial interest since its launch.

 

These advancements can potentially raise the value of SHIB and benefit those who have remained committed to the DCA strategy.

What Next For Shiba Inu? 

Shiba Inu's experience with the DCA strategy in 2023 serves as a reminder that not all investment approaches guarantee profits. While DCA can reduce some of the psychological hurdles associated with investing, it may not always shield investors from market fluctuations.

 

SHIB's performance highlights the importance of staying informed and adapting strategies to evolving market conditions, i.e., Knowing the good time to buy shiba or other cryptocurrency. Also, Investors should keep a close eye on developments within the SHIB ecosystem, as they could play a pivotal role in determining its future profitability.

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