Shiba Inu (SHIB) Posts 300% Gains This Week... Is It a Good Buy???

It has been a great week for cryptocurrencies so far, with Bitcoin surpassing $55k resistance level and most of the top coins following the suit showing decent gains. But the talk of the town is Shiba Inu, posting 258.9% gains in last 7 days.

Today the meme coin peaked to $0.0003473 before the dumping pulled the price back to $0.0002480. As of now Shiba Inu is 15th largest coin ahead of Chainlink and Litecoin, with a the total market cap of about $12.5 billion.

The token's bulls run started last week with Tesla and SpaceX CEO Elon Musk twitting the image of his new Shibu Inu pup, Floki. Thanks to the positive market sentiment Shibu Inu holders community is now 700,000 strong as per data from etherscan.

Whereas Floki's image did trigger the recent bulls run but several other factors are also at work too behind the scene. First of all, there is an overall positive market sentiment with Bitcoin surging by 25% crossing the $55k threshold. Moreover Shiba Inu has kept advancing since its inception, in the form of major exchange listings like Coinbase, Binance and Crypto.com. Shiba Inu even launched its own DEX, ShibaSwap, back in July this year. In contrast to Dogecoin and many other pet coin, Shiba Inu has slight more utility, thanks to it own DEX, ShibaSwap, where users stake, trade NFTs and have other yield opportunities.

So the question remains, is Shiba Inu a good buy? Despite some improvements over Doge, Shiba Inu is still a pet coin. And despite this week's humungous gains, it is imprudent to think Shiba Inu is a good investment, considering the fact its growth is primarily triggered by the picture of a puppy on social media from a celebrity.