Cryptocurrencies have had a wild ride in 2021 and 2022, but the upheaval has substantially benefited the Shiba Inu coin. The Shiba Inu Coin has been in the spotlight for various reasons, despite its low value. However, the coin is capturing a significant portion of the crypto market and proving to be a fantastic investment option. So, what is the Shiba Inu coin, and how did it become so popular in cryptocurrency?
If you’re interested in learning about the Shiba Inu coin and finding out what it is, you’ve come to the right spot. This guide will explain several vital aspects of this intriguing and unique cryptocurrency.
What is Shiba Inu?
Meme coins are cryptocurrencies that relate to a trending topic, such as the Shiba Inu dog in the case of Shiba Inu and Dogecoin. However, they are often created as a parody or inside jokes rather than a digital commodities with genuine utility.
The Shiba Inu, a hunting dog native to Japan, serves as the mascot for Shiba Inu (SHIBUSD), an altcoin built on the Ethereum blockchain. Shiba Inu is commonly regarded as an alternative to Dogecoin, and its proponents refer to it as “the Dogecoin killer.”
What is the Difference Between DOGE and Shiba Inu Coins?
Although Dogecoin and Shiba Inu are fierce rivals, these coins have significant differences. First, while Dogecoin was introduced in December 2013, Shiba Inu was established by an unnamed individual or group named Ryoshi in August 2020.
Furthermore, Shiba Inu employs Ethereum’s network; thus, it can leverage smart contracts to develop more sophisticated applications, such as DEXs and NFTs. ShibaSwap, the token’s decentralized exchange (DEX), was launched in the summer, and “Shiboshis,” a collection of 10,000 NFTs, was released only recently. On the other hand, Dogecoin is built on Bitcoin’s code and is not compatible with smart contracts. Due to this, Doge can only be used as online money, a speculative investment, and (unstable) value storage.
ShibaSwap augments the value of Shiba tokens for its users by introducing new usage options. ShibaSwap was introduced with incentives for new users to purchase Shiba tokens and stake them in liquidity pools, facilitating the DEX’s adoption. Nonetheless, this strategy is not novel on the Ethereum network. Many decentralized apps (DApps) currently provide staking pools, and there will be sell pressure when the liquidity mining incentives expire.
Why are Shiba Inu Coins Popular?
Shiba Inu’s official website referred to SHIB as a Dogecoin killer during its launch. Shiba Inu, Floki Inu, Doge Dash, and Dogelon Mars all employ the same dog-themed branding as Dogecoin, but SHIB is the only one to compete with Dogecoin thus far.
Since its debut, Shiba Inu has aggressively pursued its rival, Dogecoin. As Dogecoin is akin to the Bitcoin blockchain, on-chain functionalities such as smart contracts are currently limited. SHIB is an Ethereum-based token with smart contract functionality, making it a fierce competitor or “killer” of Dogecoin. Besides, Shiba Inu investors have accomplished returns of more than 5.52% this past week. In addition, Shiba Inu Price Prediction hints at a slight correction over the following weeks.
Here are five reasons why Shiba Inu coins are popular among crypto traders and investors.
Its founder is anonymous.
The only thing the world knows about Satoshi Nakamoto is that he is the founder of Bitcoin. Shiba Inu was established secretly under the alias Ryoshi, much like Bitcoin. Similarly, people have yet to learn the intelligence that drives this ecosystem. Ryoshi might be an individual or a group, for all we know.
It has a multi-token ecosystem.
Three tokens make up the Shiba Inu ecosystem: Shiba Inu (SHIB), Leash (LEASH), and Bone (BONE). The Shiba Inu ecosystem comprises the three tokens listed below:
Shiba Inu (SHIB): This is the primary currency of the project. Starting with a supply of 1 quadrillion (equivalent to 1,000 trillion), Ryoshi transferred 50% to Uniswap (for liquidity purposes) and the remaining 50% to Ethereum co-founder Vitalik Buterin for safekeeping. In May 2021, Buterin contributed over 50 trillion Shiba Inu coins, worth over $1 billion at the time, to a COVID-19 relief fund in India. The country was reeling from the Delta version of the coronavirus at the time. Shortly after that, Buterin “burned,” or withdrawn from circulation permanently, 40% of Shiba Inu’s entire supply to a so-called “dead wallet.”
Leash (LEASH): The second token in the Shiba Inu ecosystem, Leash symbolizes the other end of the ecosystem’s spectrum, with a total supply of just 107,646 tokens in contrast to the billions of Shiba Inu tokens.
Bone (BONE): In terms of supply, Bone falls between the other two tokens, having a total quantity of 250,000,000 tokens. It acts as a governance token that enables the SHIBArmy to vote on forthcoming ideas.
In addition, the Shiba Inu ecosystem includes:
ShibaSwap: The DeFi platform ShibaSwap aims to create a decentralized and secure environment for trading cryptocurrencies. SHIB and LEASH are most effectively bought and sold on ShibaSwap.
Shiba Inu Incubator: The incubator seeks to move the emphasis away from popular art forms such as painting, photography, and computer depiction and to find ways to recognize innovation and inventiveness.
Shiboshis: Shiboshis are 10,000 non-fungible tokens (NFTs) made by Shiba Inus and published on the Ethereum blockchain. Each Shiboshi has unique and collectable characteristics.
It supports specific Defi products.
Shiba Inu supports smart contracts, enabling users to lend and stake them to generate passive income through periodic fees.
Elon Musk’s online actions influence its popularity.
If Elon Musk endorses a cryptocurrency, it is equivalent to receiving the certified blue tick. Elon Musk’s tweets have a tremendous capacity to make or break a cryptocurrency. Fortunately, Shiba Inu often appears in Elon Musk’s positive tweets. He even tweeted about buying a Shiba Inu, which gave the SHIB token its first significant boost, increasing its price by nearly 300%.
It has a utility-based ecosystem.
The ecosystem supports a lot of useful utilities, such as NFTs and a Defi-platform in ShibaSwap, contrary to the popular idea that a meme coin like SHIB is entirely driven by hype and sentiment. ShibaSwap’s objective is to create a decentralized, safe environment for cryptocurrency trading.
The Bottom Line – Is Shiba Inu Worth the Hype?
While some opponents dismiss Shiba Inu currency due to conjecture, FOMO, and tweets, Shiba Inu is planning several potentially lucrative ventures that might enhance its awareness and viability. The first two retailers to accept SHIB payments are Newegg electronics e-retailer and AMC Entertainment. Flexa has also revealed that it agrees to Shiba Inu currency as a payment token, which means users can use the cryptocurrency to purchase products at GameStop, Whole Foods, and Lowe’s. Investors should wait patiently and cautiously to see if the cryptocurrency enters another potentially lucrative bullish market.