Just a year after launching and declaring itself the “Dogecoin Killer”, the Shiba Inu coin has overtaken its more famous rival to become the world’s most valuable meme coin.
The cryptocurrency is one of several new tokens that use a Dogecoin-themed branding similar to Dogecoin – along with Floki Inu, Doge Dash and Dogelon Mars – but it is the only one to challenge Dogecoin so far. The Shiba Inu’s astonishing price advantage has seen its value increase by 750,000 percent since January 2021, raising its market cap to above $40 billion.
Founded in August 2020 by the pseudonym Ryoshi, Shiba Inu first began gaining momentum and mainstream attention during the crypto rally in the first half of 2021. In May, Ethereum founder Vitalik Buterin donated more than $1 billion to Shiba Inu (50 trillion SHIB). In India Covid-Crypto Relief Fund, to boost fresh interest and drive up the price.
Follow GranthshalaLive coverage of bitcoin and the rest of the crypto market
The core principles of the Shiba Inu differ from Dogecoin, which its creators claim results in greater utility. Dogecoin is a fork of Luckycoin, which uses the same underlying blockchain technology as the bitcoin spin-off Litecoin. In contrast, the Shiba Inu is an Ethereum-based token, which allows it to function as “an experiment in a decentralized seamless community building”.
Proponents of the Shiba Inu also claim that it is more community-driven than its more well-known rival, despite recent data that it is actually not ordinary retail investors who are driving up prices.
Blockchain data firm Nansen found that the recent rally was fueled by digital addresses labeled “smart money”, which saw traders making profits of over $100,000, as well as so-called whales trading over $1 million. .
Whale’s investment ultimately helped push the shiba inu’s market cap above Dogecoin, but despite this it is unlikely to act as a “killer” for its old rival. Dogecoin counts among its fans like Elon Musk, while developers are also working on ways to improve it and make it more suitable for use as an everyday currency.
Instead of hurting the fortunes of other cryptocurrencies, the Shiba Inu is more likely to help them by bringing more interest to the space.
“We should all thank dogecoins like SHIB and DOGE,” said crypto commentator Lark Davis. “They’ve both brought in so many new investors.”
According to CoinMarketCap’s price index, the Shiba Inu now ranks as the ninth most valuable cryptocurrency by market cap, while each coin is worth only $0.00007. That’s because it has a supply of 1 quadrillion coins – in contrast, bitcoin’s supply is limited to 21 million – however, some popular crypto accounts on TikTok and other social media apps have been used as a way to encourage people to invest. I have used this low price. .
“The Shiba Inu continues to soar because of social media,” said Michael Kammerman, CEO of crypto trading platform Skilling. Granthshala.
“The crypto movement is centered around the public and where they turn to for information. As we have seen with Dogecoin and now the Shiba Inu, tweets control the rise and fall of the digital asset.”
This susceptible nature of meme coins means that investors are advised to research cryptocurrencies before buying them, taking into account their volatility.
“Social media and financial influencers are great at introducing the concept of cryptocurrency, but investors need to recognize the entertainment value that is happening online, and look deeper into crypto before making any decisions,” Mr. Kammerman says.
“It is a high-risk investment and as with any investment, you need to understand what you are investing in and make a rational, emotionally wise decision.”
Credit: www.independent.co.uk /