Why Is Shiba Inu Coin (SHIB) Going Up?
Originally conceived as a “Dogecoin killer”, Shiba Inu coin (SHIB) is now one of the largest cryptocurrencies by market cap.
Few meme coins can match SHIB’s growth over the past year, but many are wondering whether the meme coin will continue its performance.
ShibaSwap, a decentralized exchange launched in July 2021, may continue to drive interest in SHIB, and other native coins BONE and LEASH.
Shiba Inu coin (SHIB) isn’t the first meme coin to become a trending hashtag. In fact, it isn’t even the first dog-themed coin to rise to prominence. Earlier this year, Dogecoin (DOGE) sparked widespread interest from longtime crypto users and mainstream audiences alike. Buoyed in part by high profile figures like Elon Musk and Snoop Dogg, DOGE rose through the ranks to become a top 10 cryptocurrency by total market cap.
Originally created to be a “Dogecoin killer”, along with similar imitators like Akita Inu coin (AKITA) and UpDog (UPDOG), Shiba Inu coin is now hot on Dogecoin’s heels, rising to the number eight position on the list of top cryptocurrencies by market cap, before falling to number 11 at the time of writing. Today, SHIB is listed on many of the world’s most popular crypto exchanges, including Binance. Is SHIB all bark and no bite? Or does it have the legs to become top dog when it comes to the world of meme coins?
Why Is the Price of Shiba Inu Coin (SHIB) Going Up?
Undoubtedly, some of SHIB’s success can be attributed to the popularity of its older sibling, DOGE. Created in part as a cheaper, sub-penny alternative to DOGE, SHIB’s fortunes rose and fell accordingly as DOGE entered and exited the newscycle.
When Elon Musk and Snoop Dogg turned DOGE into a household name, speculators may have been drawn to SHIB’s lower prices, as prices for both tokens appeared to be highly correlated. When DOGE peaked on Saturday, 8 May, 2021, just before Elon Musk’s controversial “Saturday Night Live” monologue, SHIB wasn’t far behind, reaching its own all-time high one day later.
In addition to DOGE, the price of SHIB may also be somewhat correlated to Bitcoin (BTC). This October, as the cryptocurrency market reached new heights, so too did SHIB. What’s especially striking is SHIB’s affordability compared to other trending cryptocurrencies. With prices hovering around a fraction of a fraction of a cent, or $0.00054 at the time of writing, it may be tempting for prospective users to own hundreds, thousands, or tens of millions of tokens — in the latter case, all for a fraction of the cost of a single Bitcoin.
What Is ShibaSwap?
ShibaSwap is a decentralized exchange that allows users to trade Shiba Inu coins directly with other users, without any intermediaries. In addition, users have access to a veritable Shiba-verse of dog-themed features. Aside from buying and selling SHIB on ShibaSwap, here are a few examples of what users can do with the decentralized exchange:
Dig. Users can participate in liquidity mining to earn BONE token rewards, which can be used to influence governance decisions.
Bury. By “burying”, or staking tokens, users can earn APY in the form of BONE, on their staked SHIB, BONE, or LEASH tokens (we’ll explain the latter shortly).
Swap. Similar to other token swap projects, the Swap feature on ShibaSwap allows users to exchange one token for another.
ShibaSwap features three native tokens, called SHIB, BONE and LEASH. BONE is best understood as a governance token, which can be used to influence governance-related decisions on the SHIB protocol, while LEASH was originally conceived as an elastic supply token, which aims to achieve a target price by altering its supply. These plans have since been discarded. Today, LEASH exists as the most valuable native token on ShibaSwap, with its price influenced by the value of SHIB and BONE.
Interested in SHIB? 3 Things To Watch Out For
Users who are considering whether to add SHIB to their holdings should carefully consider the following points. As always, remember to do your own research before trading cryptocurrencies.
Does SHIB have a competitive advantage? As meme coins have flooded the market, each bearing names inspired by dog breeds, food items, crypto memes and more, it can be hard to determine whether coins have any utility or unique value. To better evaluate whether a coin has a competitive advantage, we recommend users to spend time reading about the projects in question, in order to separate facts from hype.
Any speculation on the horizon? Many assets, both in the world of crypto and beyond, are subject to price fluctuations based on speculation. Who’s talking about SHIB? Are there any news-worthy updates to capture widespread attention? Speculation has long been a fuel-source for meme coins like SHIB.
Are there any vulnerabilities worth noting? In the past, the rise and fall of many cryptocurrencies can be attributed to their security and susceptibility to exploits and nefarious activities. Like with any cryptocurrency, it’s worth investigating whether your token or platform of choice is fully secure.
No matter your views on meme coins like SHIB, the rise (and rise) of a second dog-themed cryptocurrency has caused awe and consternation in crypto savvy and retail audiences alike. Despite the proliferation of meme coins on the market, few can match SHIB’s growth over the past few months. Whether this cryptocurrency can sustain its popularity will be another question that many are looking for answers to.
Disclaimer: The Binance blog may contain news, information, and analysis about cryptocurrency trading, but it should not be misconstrued as financial advice in any way. Exercise proper caution and do your own research to verify all information you read here or elsewhere