What exactly is a shiba inu coin? Is there something true behind this ferocious rally, or is it all just hype?
Most altcoins fell in value on Wednesday, but shiba inu continued to make new highs.
The meme token has risen 710 percent in the last month and is poised to overtake Dogecoin as the world’s tenth-largest cryptocurrency.
It was established in August 2020 and currently has 1 quadrillion coins in circulation.
The altcoin season has returned, albeit most are selling off on Wednesday, and one unsuspected front-runner continues to break new records: the shiba inu.
The meme token, which appeared out of nowhere, may now overtake dogecoin to become the bitcoin ecosystem’s tenth-largest digital asset.
It increased by up to 45 percent Wednesday to a new intraday high of $0.00006220, according to CoinGecko data, bringing its gains over the past month to about 710 percent. It is the 11th-largest cryptocurrency, with a market value of $30.9 billion.
Shiba inu is an ethereum-based alternative to dogecoin, a meme asset popularized by Elon Musk and Mark Cuban.
It even refers to itself as a dogecoin killer and, like dogecoin, has a Shiba Inu as its mascot.
Not so sure if there’s capacity in the market for numerous meme coins,” according to Chris Kline, chief operating officer and cofounder of Bitcoin IRA. “Does it come down to a zero-sum game?”
spontaneous community development
With regards to its 28-page white paper, or in the case of shiba inu, weft paper, the token was formed in August 2020 by someone going under the name Ryoshi, whose purpose was to move away from “strict societal structures and traditional mindsets.”
Shiba inu, on the other hand, desired to be “an experiment in decentralized spontaneous community development” and to return control to the “ordinary person.”
So, what’s the deal?
There are several causes for this. On Wednesday, the price increase could be attributable to a Change.org online petition with over 300,000 supporters urging Robinhood to be the first traditional brokerage to market the currency.
Shiba Inu has just developed a series of nonfungible tokens known as “shiboshis” that are written on the Ethereum blockchain. Some of these depict shiba inus wearing a party hat or having laser eyes.
In May, ethereum cofounder Vitalik Buterin donated 50 trillion (about $1 billion at the time) to a crypto-based COVID-19 relief fund for India.
Aside from that, it’s simply the Shib Army rallying around the coin.
“The cryptocurrency landscape is filled of coins that reflect varied use cases and themes,” John Wu, president of Ava Labs, the team behind altcoin avalanche.
“Meme tokens are driven by culture and indicate an underlying theme or movement, rather than unique technological use cases,” he added.
Shiba inu may have more advanced smart-contracting capabilities because it is written on the ethereum blockchain, according to Wu. Shibaswap, a platform founded in July with the goal of providing use for the currency in terms of staking and rewards, is one example.Does this imply that the shiba inu has no practical application?
It’s difficult to say – at least for the time being. According to Wu, “wasn’t developed with a complex use case like borrowing, lending, trading, or gaming in mind,” but it is attempting to be beneficial.
It is worth mentioning that the shiba inu was not intended to have a finite supply and currently has 1 quadrillion coins in circulation. Meanwhile, the total number of bitcoins is limited to 21 million.
How much does a shiba inu cost?
If you think $0.244775 for a dogecoin is inexpensive, wait till you hear how much a shiba inu costs.
The coin is only worth $0.00006289. So holding one million shiba inu coins costs only $62.89.
However, the nominal price is not the best approach to assess a cryptocurrency’s desirability. Instead, it is the asset’s future use cases as well as the promise it brings. It also helps to have a supportive community behind you.