What is the Shiba Inu (SHIB) digital currency? Why did the price explode?
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Answer What is the Shiba Inu (SHIB) digital currency? Why did the price explode?
The crypto market is always said to be unpredictable, whether it is the prices of its cryptocurrencies or its general trends.
The arrival of Bitcoin, Ethereum and others to record levels made the world’s eyes turn to this young market, which grew very quickly to reach 2.5 trillion dollars in just over a decade.
The growth, maturity and prosperity of the crypto arena has made some of the new trends in the crypto market stand out strongly with no clear and logical explanation for them.
Dogecoin exploded in 2021, rising from a price of under $0.01 for most of January to an all-time high of $0.68 set last week, according to Nomics.
Read:Ethereum Celebrates Its Fifth Anniversary With Impressive Statistics
But there’s a new puppy coin on the scene, and it’s also exploded in the past few days.
What is a digital currency (SHIB)?
“Shiba Inu” is its name, and “ERC20” is a standard built on the Ethereum blockchain.
The digital currency SHIB appeared suddenly and quickly, and appeared as an alternative to the digital currency “Dogecoin”.
It is possible to say that SHIB is a copycat of DOGE, especially since “doge” is actually a descendant of “Shiba Inu” as well.
Yes, the two currencies compete together, not with the technical solutions provided or the established goals, but rather which of them captures the hearts of investors by showing the cutest dog of the “Shiba Inu” breed, which appears as a logo for both 🙂
According to CoinGecko, the current price of SHIB is $0.00002898 (as of this writing) which is 22772% more than what the coin was worth 30 days ago, and the coin has seen a 1527% uptick in the last week alone.
CoinGecko does not provide market value or rankings for SHIB yet, but CoinMarketCap It indicates that the market capitalization of the coin has reached nearly $11.4 billion, making it the 20th largest in terms of total coin value according to his criteria.
Read:A gaming company was hacked with a ransom demanded of $11 million in bitcoin
The price of the “SHIB” coin has risen more than 2 million percent since its inception (July 31, 2020 according to CoinMarketCap), much higher than the rise of Bitcoin or Ethereum since its inception.
This is wild for a coin that seems to have come out of nowhere.
While still well below Dogecoin’s current market cap of $64 billion, making it the fourth most valuable coin as of this writing, Shiba Inu has also seen larger gains in recent times.
Where is SHIB coin available?
The SHIB digital currency can be purchased via exchanges such as Binance, Huobi Global, and OKEx.
The currency is also traded on decentralized exchange (DEX) platforms, such as Uniswap, 1inch and 0x.
SHIB’s price has jumped in the past few days after it was listed by Binance after apparently massive demand from users.
Binance CEO CZ tweeted on May 10 that Binance has run out of ETH deposit addresses due to SHIB today, and that this has never happened before for any other ERC20 coin.
But while Binance will benefit from higher trading volumes, its CEO cautioned about potential risks in the future, noting this:
The currency carries a very high risk.
What is the story of SHIB?
Besides being an ethereum-based meme and a competitor to Dogecoin, what exactly is the “Shiba Inu” project?
According to the official website, SHIB was created as an experiment in decentralized automated community building, the first of several planned cryptocurrencies all under or in connection with the dog breed.
“LEASH” is another coin that was released, but in limited quantities, and its price has skyrocketed (according to CoinMarketCap), its price is estimated at 5800 dollars at the time of preparing this article and this coin describes itself as a Dogecoin killer as well, it seems that Dogecoin has many enemies and those who promise to kill it 🙂 .
In addition to the digital currency LEASH and SHIB, there is also the BONE coin, which uses the dog’s bone as its emblem.
The “Shiba Inu” project promises to launch the “ShibaSwap” decentralized exchange (DEX) platform, and there is even a “white paper” detailing the team’s plans, but so far it is only promises on a website page.
A total of 1 quadrillion SHIB was minted, and the anonymous developers behind “Shiba Inu” sent more than half of the total supply, just over 505 trillion SHIB, to the address of the founder of Ethereum.
The developers treat this amount as “burned” or removed from the market, which could increase the value of the coin that is still available for trading, but the founder of Ethereum already has access to his received coins.
If a lot of this sounds silly or even illogical, you’re probably not alone in this thinking.
But Dogecoin was also long considered a “joke” cryptocurrency before 2021 became its year and became the talk of fans like Mark Cuban and Elon Musk.
Can SHIB follow a similar path to DOGE?
When it comes to the sudden rise in prices, this has already happened.
As for the expectation of doubling the investment in the SHIB currency tenfold, it is difficult, if not impossible, because in the crypto market everything is possible, but for the SHIB currency to rise tenfold, this means that its market value will also rise to the level of 110 billion dollars (considering its current market value (estimated at $11 billion), which means that it will become the third largest cryptocurrency and surpass BNB?!
The above article explains the nature of the project, and we remind that the currency appeared out of nowhere and its value rose to record levels already, so when you want to enter it, you must think several times before doing so.
Read also:
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Michael Saylor advises: It is not wise to leave Dogecoin to your grandson
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