Shiba Inu (SHIB) has been the talking point of the cryptoverse and mainstream media lately. It’s a meme coin whose theme is the Shibu Inu dog, a Japanese breed of dog that Dogecoin (DOGE) is also based on. According to CoinMarketCap data, SHIB hit its all-time high of $ 0.0000388 on May 10, after rising more than 2,500% from its quotation of $ 0.00001478 on May 7.
The token has already been listed on most of the major exchanges, including Binance, Coinbase, FTX, OKEx, and even Binance’s Indian counterpart, WazirX. It also briefly entered the list of the top 20 cryptocurrencies by market capitalization. Currently, it has fallen through the rankings with a market cap of just over $ 6 billion. Previously, SHIB’s market cap hit an all-time high of more than $ 13.5 billion on May 10.
SHIB started in August 2020, shortly after the Dogecoin hype on TikTok brought the coin to a two-year high. According to their “Woof Paper”, a total of 1 trillion tokens were minted, 50% of which were locked with discarded keys on Uniswap. However, the other half was accidentally sent to the wallet of Vitalik Buterin, co-founder of Ethereum.
The intention of sending 50% of the tokens to Buterin was to ensure price stability, since the dynamics of supply and demand ideally do not allow for rapid price fluctuations as a company owns a large portion of the supply in circulation.
However, Buterin donated more than $ 1 billion from SHIB to a coronavirus charity in India known as the India Covid Relief Fund. This caused the price of the currency to drop more than 50% almost instantly when the market panicked.
Disclaimer: The currencies described below are very volatile and speculative. This article is not a recommendation for these coins. If you trade any of these currencies, you do so at your own risk.
Are the Dogecoin killers out there? Maybe not yet
According to the coin’s woofpaper, he claims to be the “Dogecoin killer” and cites the token’s huge supply as a differentiating factor between the two. In fact, the demand for Shiba Inu soared on May 10th that Binance no longer had any ETH addresses as the token is based on the Ethereum blockchain.
Johnny Lyu, CEO of KuCoin – a cryptocurrency exchange – spoke to Cointelegraph about the positive aspects of such high demand from retail investors: “It can be viewed as a way to quickly learn about blockchain and the cryptocurrency industry. It offers new users a lower threshold compared to some major cryptocurrencies like Bitcoin and Ethereum.“”
Since the token competes with DOGE, it is important to evaluate how it compares to Dogecoin. At the time of writing, SHIB is trading in the $ 0.000016 range, which is around 10,000% profit in the last 30 days compared to around 300% profit there. 30 days for Dogecoin, which is currently changing hands at around $ 0.50. Regarding the Dogecoin use cases, Lyu explained in more detail:
“Dogecoin has a unique cultural symbol along with numerous use cases. For example, SpaceX recently announced that it is launching the DOGE-1 lunar mission and the cost will be paid in Dogecoin. This will allow more people to know and use Dogecoin with Musk’s predilection for Dogecoin.”
DOGE fell more than 25% after the Tesla CEO’s appearance on Saturday night, where he dropped multiple references to the meme token. His appearance also caused Tesla’s price to drop 14%, losing nearly $ 20 billion in market value.
However, on May 14th Musk announced that he will be working with the DOGE development team to “improve the efficiency of system transactions.” This news sparked a rebound in token price, which rose from $ 0.38 to trading in the $ 0.50 range as the community saw greater adoption of brands and companies as payment options for customers. Private investors.
Jake Wujastyk, chief market analyst at TrendSpider – a technical analysis software company – told Cointelegraph DOGE’s price drop before SNL was no accident: “That dump in the middle of the $ 0.30 price was timed favorably just before this announcement by Elon Musk.”. In addition, he added:
“Dogecoin went down on the volume shelf by $ 0.35 earlier in the week (an area where people who originally had profits above $ 0.40 were back to break the balance). Right here technical traders should have expected a rebound if supply dried up in this area (due to a lack of profit from those DOGE originally had around $ 0.35). “
While Next to DOGE, SHIB is currently the most talked about meme coin on the subject of dogs. Several other highly volatile and speculative dog meme tokens float in the Cryptoverse, released in hopes of recreating DOGE’s performance.
One of the other coins from the same development team as SHIB is called LEASH. This coin has a limited total supply of only 107,647 tokens. Because of this tight supply and the expectation that the project has increased, Shiba Inu’s sister coin has seen astronomical gains of 6,500,000% since the beginning of May.
Another such coin is Kishu Inu (KISHU), a token whose subject is Shiba Inu’s distant relative, the Kishu. The project white paper looks at a decentralized application for yield farming in the future, similar to SHIB’s upcoming ShibaSwap marketplace, where users can exchange the token and even earn rewards by staking. The coin is currently changing hands at $ 0.00000001 and has posted more than 4,000% gain over the past 14 days.
Another coin trying to capture the DOGE hype is Dogelon Mars (ELON), a coin based on Elon Musk and his love for space travel. As with SHIB Tokenomics, when minted, 50% of the offer was sent to the Buterin wallet address, and the other 50% was locked in a liquidity pool with a pairing ether (ETH) at Uniswap. ELON is currently trading at $ 0.00000070 and has made gains of over 220% over the past 14 days.
It doesn’t end there. There are many more projects trying to mimic Dogecoin financial performance – UnderDog (DOG), Doge Token (DOGET), DogeFi (DOGEFI), DogeSwap (DOGES), PAW Token, and ShibaCorgi Token, to name a few. In fact, there’s now even a CAT token released by the Netflix show Tiger King star Carole Baskin.
Related: DOGE as internet money? TikToker and sports fans see a use case for Dogecoin
Wujastyk looked at the viability of these dog-themed meme tokens: “There are many coins popping up that only take advantage of Dogecoin. Most of these coins have no use other than a vehicle for speculation. “. Additionally, he added, “Most of them are currencies that are taking advantage of the current boom in currencies. Generally this doesn’t end well and many new traders are likely to get burned.”
Since most of these dog-themed meme coins, aside from DOGE, are ERC-20 standard Ethereum-based tokens, the euphoria they received has created additional congestion on the Ethereum network, thus increasing gas rates . As a result, the price of entering these currencies has increased significantly.
The blockchain is currently in the process of transitioning to Ethereum 2.0, which will replace the consensus model for proof of work with a consensus for deployment that aims to improve the scalability of the network and thereby lower gas prices for investors. However, this process will take some time.
In the meantime, the widespread love for dogs and the desire to become a millionaire quickly, as various DOGE investors lead to the “Meme Coins”. flood the market. However, it remains to be seen whether it is just a bubble or whether these tokens will lead to a paradigm shift in cryptocurrencies. Most likely, Doge will pave the way for these coins and decide their future based on his own adoption and price action.