The Rise of Shiba Inu (SHIB): The ‘Dogecoin Killer’

| June 14, 2021 | 0 Comments

With the rise in value and popularity of Dogecoin in the cryptocurrency market, other meme-inspired coins are bound to follow suit like the Shiba Inu (SHIB) coin. This cryptocurrency named after the dog breed was launched less than a year ago.  Those in the crypto space may have read about the SHIB being dubbed as the “Dogecoin killer.” 

One SHIB coin has a value of less than $0.000029 but the price surged after cryptocurrency trading platforms Binance and OKEx listed the meme coin.  Huobi, the Chinese-funded crypto exchange, has helped propel the Shiba Inu coin as it handles the biggest share of the coin’s trading volume at present. The platform is popular among Chinese crypto traders.

According to data from CoinMarketCap.com, SHIB has a market capitalization of more than $11 billion with a 24-hour trading volume of over $8 billion. Before the coin was added in bigger crypto exchanges, trading volume was maxed out at $500 million one day.  In January of this year, the SHIB’s daily trading volume was even lower than $1. 

Experts in the crypto space believe SHIB should not be ignored despite having no underlying value or use cases. This particular meme coin is rising in popularity because it reflects the characteristics of a new and emerging class of cryptocurrency traders. 

How SHIB started

The Shiba Inu coin was created in August 2020 but not much is known about its founder who is only known as Ryoshi. The creator of SHIB has pushed for the coin to be the “Dogecoin killer” since he believes SHIB’s technology is more community-oriented.  This is compared to Dogecoin that uses the image of a Shiba Inu dog as a mascot. 

“We have the ability to outpace the value of Dogecoin, exponentially without ever crossing the $0.01 mark,” Ryoshi had written in his SHIB “woofpaper” or white paper. Ryoshi explained in the paper that the coin was an experiment in spontaneous community building. The founder also described Shina Inu as “incredible dogs” and called on people to send donations to the Shiba Inu Rescue Association. 

The SHIB is based on the Ethereum blockchain with a supply cap of 1 quadrillion. Ryoshi listed social media influencers, leaders in international chat rooms and meme makers as part of the people behind the coin’s success.  

What makes SHIB appealing

The Shiba Inu coin appeals to crypto investors who are looking for passive income from staking.  Others have come on board because they missed out on Dogecoin’s meteoric rice to the top.

The ripple effect of Dogecoin’s increase in value has put the spotlight on other meme tokens like Shiba Inu. Meme tokens are on the rise in recent months because of the potential of acquiring short-term gains or profits. 

Analysts have observed that those who enter the cryptocurrency market via meme tokens are more likely to support other projects.  This will lead to more growth and interest in the crypto space. 

For first time investors, meme coins like SHIB are good entry points.  A Shiba Inu token does not cost that much compared to other tokens in the market. 

Of course, every investment has risks involved. It is important to always remember that cryptocurrencies are known as a risky asset class because of their high price volatility. Speculative altcoins like Shiba Inu tend to be riskier.  It is up to the investor to determine tolerance for such risks. 

Although the frenzy for meme tokens did not last that long as is the case of Dogecoin, the potential for renewed investor interest will remain. Dogecoin’s price movement was spurred mostly by tweets coming from Tesla CEO Elon Musk. When he first appeared in the popular show, Saturday Night Live (SNL), Dogecoin’s price went up. However, after the show ended, Dogecoin declined and has been volatile since then. 

Musk had jokingly called Dogecoin a “hustle” that cost Dogecoin 30% of its value. SHIB seemed to have capitalized on the hype brought by SNL.  Two days after Musk’s SNL appearance, SHIB was listed on Binance at double the price. 

The future of SHIB

Despite the attention on speculative altcoins, the future remains uncertain for SHIB. Some analysts said that if you bought just as the hype intensified on meme coins, you will make money. 

David Hsiao, CEO of cryptocurrency magazine Block Journal, believes that the hype surrounding meme coins like Shiba Inu is a “social phenomenon.” This means traders have targeted coins based on memes other than tokens that promote blockchain technology or with use cases like ETH. 

Hsiao revealed his contacts in China and other parts of the world have become curious about SHIB. But given the attention, the Shiba Inu coin will not be overtaking Dogecoin anytime soon. DOGE has a market cap of over $60 billion.  

In the crypto space, anything is possible.  As for the meme coins, they are here to stay as long as traders continue to want them to. 

 

Reissa Su

Writer

Reissa covers latest news for Revolution Crypto.

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