KEYTAKEAWAYS
- Shiba Inu Coin (SHIB) is a meme-based cryptocurrency created in 2020, touted as the "Dogecoin Killer" and featuring a Shiba Inu dog as its logo.
- SHIB has advantages such as a friendly issuance, strong community support, and a low price, but also faces challenges like a lack of commercial applications and high volatility.
- While reaching 1 cent in 2025 may be unlikely, SHIB's popularity, ecosystem improvements, and market dynamics suggest a potential for continued growth and adoption.
CONTENT
Learn about Shiba Inu Coin (SHIB), the “Dogecoin Killer,” a meme-based cryptocurrency inspired by Dogecoin, featuring a Shiba Inu dog as its logo. Discover its advantages, disadvantages, and key differences from Dogecoin, as well as insights into its popularity and potential future trajectory.
WHAT IS SHIBA INU (SHIB)?
Shiba Inu Coin (SHIB) is a meme-based cryptocurrency created by an anonymous individual named Ryoshi in 2020. Inspired by Dogecoin, it features a Shiba Inu dog as its symbol and is touted as the “Dogecoin Killer,” operating as a decentralized community-based cryptocurrency project.
SHIB is an ERC-20 token issued on the Ethereum blockchain with a total supply of 1 quadrillion coins. Upon its initial launch, Ryoshi locked 50% of the total supply on Uniswap to provide liquidity and discarded the private keys, signifying the abandonment of control by the team. The remaining 50% was sent to Vitalik Buterin, one of the co-founders of Ethereum, for safekeeping.
In terms of tokenomics, SHIB has both issuance and burning mechanisms. Currently, over 40% of Shiba Inu Coins have been burned.
In addition to the SHIB token itself, Shibainu has also introduced its own decentralized exchange platform called “Shibaswap” and launched two additional tokens named Dojikiller (LEASH) and BONE for use on the platform.
SHIBA INU (SHIB) ADVANTAGES AND DISADVANTAGES
- Advantages:
1. Friendly issuance: Compared to mainstream coins like BTC and ADA, Shiba Inu Coin (SHIB) has a large total supply but doesn’t suffer from issues related to team or institutional sell-offs because it lacks private sales and team rewards. Anyone wishing to hold SHIB must purchase it from the open market.
2. Strong community: SHIB boasts a large community (3 million Twitter followers, 100,000 Discord users, 100,000 Telegram users), which greatly aids in project promotion and outreach.
3. Low price: SHIB has a very affordable price, with its historical peak being only $0.00008 USD. This is a price point accessible to nearly everyone. For instance, with just $100 USD, one can acquire 1,250,000 SHIB tokens, a quantity that can induce a sense of satisfaction.
- Disadvantages:
1. Lack of commercial applications: The ecosystem of SHIB remains within the crypto sphere and hasn’t penetrated real-world commercial applications like BTC or USDT.
2. High volatility: The price of SHIB experiences significant fluctuations, which can be a major setback for new users or those lacking awareness, easily leading to a loss of confidence.
SHIB VS DOGE
For newcomers to the world of cryptocurrency, it’s easy to confuse Shiba Inu Coin (SHIB) with Dogecoin (DOGE). Both are meme coins that use dogs as symbols and are characterized by strong community support. However, they have several key differences.
1. Supply Limit:
From a token mechanism perspective, SHIB has a supply limit and a burning mechanism, with over 40% of tokens already burned. However, Dogecoin lacks this feature, contributing to the asset risk associated with Dogecoin.
DOGE does not have a supply limit, meaning there is inflationary supply, with new coins constantly entering the market. To maintain price levels, Dogecoin buyers would need to continuously purchase all newly created tokens because there is no scarcity to support the price.
2. Different Use Cases:
SHIB is issued on Ethereum and has its own decentralized exchange platform, ShibaSwap, while DOGE is limited to applications like tipping on Twitter and Reddit.
3. Different Blockchains:
SHIB is hosted on Ethereum as an ERC-20 token, whereas Dogecoin has its own blockchain and does not need to be issued on other chains.
4. Different Launch Times:
SHIB was created in August 2020, whereas Dogecoin was established in 2013, with nearly a 7-year difference between the two. Due to SHIB’s relatively shorter time since launch, its consensus is not as strong as Dogecoin’s, circulation is not as sufficient, and it still needs time to prove itself.
>>> More to read: Dogecoin(DOGE) : King of Memecoins
WHY IS SHIBA INU (SHIB) POPULAR?
During the global pandemic in 2020, the cryptocurrency market initially witnessed a collapse followed by explosive growth. This was driven by retail investors flocking to digital assets like Bitcoin (BTC) and Ethereum (ETH) to hedge against currency inflation. As mentioned above, the legendary tales of the stock market contributed to the rise of meme coins. Some attribute SHIB’s popularity to the influence of social media, particularly the impact brought by Tesla CEO Elon Musk. In May 2021, his televised mockery of Dogecoin led to its price plummeting, while SHIB and other meme coins capitalized on the hype surrounding meme tokens. As of November 2021, SHIB’s price surged by over 60,000,000% since January.
One reason SHIB stands out among similar meme coins is its in-house Shiboshi NFT and game. Riding the hype of the NFT market, 10,000 Shiboshis sold out within 35 minutes. Additionally, Shiba Inu Coin leverages its ShibaSwap platform to introduce exclusive NFTs. With holders able to name their Shiboshis and trigger SHIB token burning mechanisms, coupled with the development of the Shiboshi NFT game, the popularity of Shiba Inu Coin may continue to rise.
IS IT POSSIBLE FOR THE SHIB COIN TO REACH 1 CENT IN 2025?
Over the years, the future price of Shiba Inu Coin (SHIB) has been a topic of debate and speculation, with enthusiasts eager to know if it can quickly soar to the $1 milestone.
It’s worth noting that the project recently introduced the Shibarium Layer 2 network, with plans to commence SHIB token burning in January 2024. Considering recent developments, let’s examine five reasons why SHIB is poised for a breakout year:
1. Increased adoption and use cases: If Shiba Inu gains more adoption and practical use cases, it can attract more investors and users, effectively increasing the demand for SHIB over time.
2. Market sentiment shift: Cryptocurrencies are heavily influenced by market sentiment. A bullish market in 2024 could favor Shiba Inu, bringing exceptional returns for loyal fans and investors.
3. Improvement in Shiba Inu ecosystem: Adding new functionalities to the SHIB ecosystem can positively impact SHIB’s price in the new year.
4. Reduction in SHIB token supply: With the recent announcement regarding SHIB token burning, we can expect a decrease in the supply, ultimately enhancing market demand.
5. Regulatory dynamics: With the approval of Bitcoin ETF expected next year, more investor cash will flow into the market, driving bullish sentiments for top cryptocurrencies including Shiba Inu.
If Shiba Inu Coin aims to reach 1 cent in 2025, it would need to accomplish the following three points:
- Increase tenfold over the next three years.
- Burn 20% of the coins annually.
- Double annually while spending almost all profits.
This scenario is nearly impossible. Therefore, it’s highly unlikely for Shiba Inu Coin to reach 1 cent in 2025.
However, looking at the ecosystem applications, SHIB is a relatively richer and potentially more valuable meme coin, as it has its own Layer-2 and has developed many products including ShibSwap, Shiboshis, Shib Yard, Bury, Shiba Eternity, and more.
The size of the market capitalization directly reflects the project’s superiority, and SHIB’s market cap is relatively high, ranking 11th globally (at the time of writing), trailing only Dogecoin among meme coins. Even SHIB may surpass its competitor DOGE in terms of utility and ecosystem. It can be seen that SHIB’s fundamentals are relatively good.
FAQ
- What is Shiba Inu (SHIB)?
Shiba Inu Coin (SHIB) is a meme-based cryptocurrency created in 2020 by an anonymous individual known as Ryoshi. It draws inspiration from Dogecoin, using a Japanese Shiba Inu as its logo. Positioned as the “Dogecoin Killer,” SHIB is a decentralized community-based cryptocurrency project built on the Ethereum blockchain.
- What is the difference between Dogecoin and Shiba Inu Coin?
DOGE and SHIB differ in token mechanisms, blockchains, and use cases. SHIB has a supply limit, burns tokens, and operates on Ethereum with its exchange, while DOGE lacks these features, has its blockchain, and limited use cases.
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