Shiba-themed cryptocurrencies are all the rage today. Shiba Inu has been making waves recently. With such rapid growth in price and popularity, it’s now worth asking:
- What is Shiba Inu?
- What makes SHIB so popular?
- Should I buy Shiba Inu?
We will answer those questions, but first, let’s dive into what exactly Shiba Inu is and why it’s so popular.
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What is the Shiba Inu Cryptocurrency Coin?
Shiba Inu is a cryptocurrency coin that was first released in 2020. Like other cryptos, it’s a decentralized, digital currency. That means it is available online. The coin, sporting the famous dog breed’s face as its physical representation, has quickly risen in popularity. It went so far as to become the most viewed crypto of 2021, surpassing BTC and ETH.
According to CoinMarketCap, Shiba Inu is the 10th most popular cryptocurrency at the time of writing. The funny thing is that Shiba Inu isn’t that different from any other crypto’s. Apart from its adorable mascot, its underlying value proposition is comparable to many other coins.
So, what sets Shiba Inu apart, and why is it so popular all of a sudden?
History of Shiba Inu
Shiba Inu was created in August of 2020. Its founder is Ryoshi; however, the actual identity of Shiba’s creator is a mystery, and “Ryoshi” appears to be a pseudonym. Regardless, the creator clearly wants to remain anonymous, stating in a blog:
“I have said from the beginning. I am a nobody. I am not important. The efforts to unmask my ‘identity’, even if successful, would be underwhelming. I am just some guy of no consequence tapping at a keyboard, and I am replaceable. I am Ryoshi.”
Shiba Inu token has the acronym SHIB. It’s an ERC-20 token, meaning it follows the widely used technical standards for Ethereum-based tokens. Ethereum-based tokens are the common choice for those launching new cryptos for their technically sound design and secure, smart contract-based implementation.
As of the launch, Shiba Inu has a fixed supply of one quadrillion SHIB. There is a secondary token appropriately called LEASH and should soon be a third called BONE.
In terms of aesthetics and terminology, Shiba Inu resembles (and is often confused with) Dogecoin. However, the two are not to be confused as the 2013-released Dogecoin is not attached to Shiba Inu in any practical way.
Shiba Inu only resembles Dogecoin aesthetically. Both feature different images of the Same Japanese dog breed, and both have a playful dog-themed culture surrounding them. In fact, the creator of Shiba Inu has an apparent sense of humor about it, calling Shiba Inu the “Dogecoin killer.” It’s been relatively straightforward about the fact that it wants to become the Ethereum-based alternative to the famous Dogecoin. In this way, they seem to be trying to take DOGE’s place as the dominant meme coin in the crypto market.
Joking and memes aside (they simply come with the territory), the driver of Shiba Inu’s popularity is its financial potential.
Another factor worth considering is that, unlike Dogecoin, Shiba Inu exists within the Ethereum ecosystem. That means it’s possible for Shiba Inu to make new apps (ShibaSwap, etc.) and to take advantage of Ethereum’s unique staking opportunities, which don’t require an intermediary. This is what enabled Shiba Inu to start its NFT and DEX projects.
Invest in over 30 cryptocurrencies from your checking account with no trading fees with the Current mobile app crypto feature.
Titan is an investment platform with a team of experts actively managing your portfolio based on your chosen strategy, including cryptocurrencies.
Alto IRA allows you to invest in stocks, bonds, mutual funds, ETFs, real estate, cryptocurrencies, and even gold for your retirement.
What Are the Price Trends of Shiba Inu Coin?
Like other cryptos, Shiba Inu (SHIB) has a history of significant price fluctuations. Since being released, the price of Shiba Inu has never risen above a fraction of a penny. At the coin’s peak on October 28th of 2021, its price was just $0.000081. However, the coin has always been traded in larger quantities than the most popular and now-valuable cryptos.
The first major cryptos, with Bitcoin being an excellent example, were meant to be scarce. Bitcoin’s scarcity, and the well-understood fact that no more BTC will be created once there are 21 million in circulation, are a part of its value proposition. In contrast, Shiba Inu is a deliberately abundant asset. With one quadrillion coins in circulation, scarcity isn’t a selling point.
Shiba Inu’s ecosystem is related to a few promising projects. It supports an NFT incubator and its own decentralized exchange. With the rise in popularity of decentralized exchanges among those familiar with the crypto landscape, Shiba Inu may benefit through further price increases.
In terms of relative price increases, the value of Shiba Inu has changed tremendously. At one point, the coin’s value rose by 777% in 30 days.
Looking at historical prices, you can see that Shiba Inu has had a turbulent time. In terms of crypto in general, its historical price patterns are not entirely unique. The coin tends to rise and fall in price rapidly over short periods.
In the long term, as usually is the case, if you bought and held SHIB for over a year, your ROI would be very high. However, most people who buy SHIB hold it for less than 2 months, according to Coinbase.
Based on historical data, long-term hodling of SHIB can be highly profitable. Attempts at short-term trading are riskier but also present opportunities for significant profits. However, technical analysis is complicated, and no one can be entirely certain about future price fluctuations.
Should You Buy Shiba Inu Cryptocurrency Coin?
The choice to buy Shiba Inu is yours alone to make.
In general, cryptocurrencies are an especially volatile asset class. That means it’s possible to make much higher returns in much shorter periods relative to other asset classes. But it also means that they are especially risky. In general, traditional investing guidelines apply and are especially important. It’s advisable not to invest more than you can afford to lose and diversify your crypto and broader portfolios. That way, if one crypto (or any asset, for that matter) falls, the damage to your portfolio is mitigated.
Shiba Inu is a young cryptocurrency in a competitive and turbulent ecosystem. It’s just gotten started and holds a lot of potential going forward. As an alternative to Dogecoin, it presents a unique value proposition.
If you understand and accept the potential benefits and losses associated with buying Shiba Inu, you can purchase the coin from a platform that offers it. Another thing to have in consideration is to find a Shiba Inu wallet to safely stake this coin, and other digital assets you may hold.
