Since the launch of Bitcoin, the first-ever decentralized digital currency, in 2009, the cryptocurrency market has grown dramatically. There are now more than 7,000 cryptocurrencies with a combined market cap of more than $3.3 trillion (as of November 8, 2021). This was a record, according to CoinGecko.
The launch of Bitcoin-linked Exchange Traded Funds in October, along with vocal support from notable crypto proponents like Elon Musk, helped fuel the recent upsurge in combined cryptocurrency market cap. Bitcoin, Ethereum, and Solana, among others, have also become more of a trusted commodity among investors despite periods of volatility. Conversely, meme coins like Dogecoin and Shiba Inu are attracting younger investors and inspiring high trading frequencies. Read on to learn more about Shiba Inu.
- 1. The Cryptocurrency Was Inspired by Popular Meme
The Shiba Inu cryptocurrency traces its roots back to a 2010 photo of the Shiba Inu rescue dog Kabosu. A picture of the dog began circulating on the Internet that year after the owner started blogging about the rescue animal. In 2013 a Reddit user posted a photo of the dog with a caption that inspired the “doge” meme and, ultimately, Dogecoin, which is among the top 10 cryptocurrencies based on market cap.
Shiba Inu, the cryptocurrency also inspired by the photo of the dog, is not far behind Dogecoin in terms of market cap. Advertised on its website as “DOGECOIN KILLER,” Shiba Inu was launched in August 2020 by an anonymous figure under the pseudonym “Ryoshi.” The token is based on Ethereum and is one of several dog-themed cryptocurrencies, which includes Baby Dogecoin, Alaska Inu, and Alaskan Malamute Token.
- 1. Its Trading Volume Is Greater Than Bitcoin
Despite its volatility, Shiba Inu has been viewed favorably among many young investors, who feel they missed out on the potential of substantial earnings via early-stage investments in Bitcoin and Dogecoin. In the 30 days before November 4, 2021, Shiba Inu increased in value by over 380 percent. It had increased more than 76 million percent during the 12 months prior. Moreover, its official Twitter account had attracted more followers than that of Ethereum, and it was the third-most searched cryptocurrency on Google.
“Seeing Bitcoin’s rise, some younger investors without a lot of money want to profit from crypto as well,” notes Johnny Lyu, CEO of cryptocurrency exchange KuCoin. “But you’d need over $60,000 to buy one Bitcoin. So they turn to Dogecoin and SHIB, where you buy tons using just $100.”
On October 28, Shiba Inu’s trading volume was threefold that of Bitcoin’s on KuCoin. Around the same time, more than 500,000 people had signed a petition on Change.org to get the cryptocurrency listed on Robinhood.
- 3. Despite Its Success, Shiba Inu has Its Skeptics
Although Lyu is a proponent of Shiba Inu as a solid long-term investment, other investors are more skeptical of the cryptocurrency in large part due to its volatile performance history and relative lack of distinction regarding functionality. Bedrock Capital founder Geoff Lewis compared Shiba Inu to Pets.com, which was a massive commercial failure during the dot-com bubble in the early 2000s. Similarly, Peter Mallouk, CEO at Creative Planning, expects the token to eventually be worthless.