Shiba Inu catapulted to the forefront of the cryptocurrency market in 2021 as a meme-based crypto token that offered real utility and applications. Learn everything there is to know about Shiba Inu and its native cryptocurrency, including the history of Shiba Inu and the potential future price of SHIB.
How does Shiba Inu (SHIB) work?
Shiba Inu (SHIB) was initially created as a joke, based on the popular Shiba Inu meme. However, unlike prior meme coins, such as Dogecoin (DOGE), SHIB operates as an ERC-20 token on top of the Ethereum blockchain, which means that the Shiba Inu network has access to a range of decentralised applications (dApps). This is one of the reasons that Shiba Inu is often referred to as the “Dogecoin killer.”
Shiba Inu utilises a multi-token ecosystem that consists of SHIB, LEASH, BONE and TREAT tokens. SHIB is the main token that can be used for transactions and staking. There is a fixed supply of one quadrillion SHIB tokens. LEASH is a scarce token with a limited supply of 107,647. It is used on the Shiba Inu network for governance and rewards. BONE was implemented as part of a rewards program for the Shiba Inu ecosystem.
There is a larger network of cryptocurrency projects built around Shiba Inu, including:
- Shibaswap — a decentralised exchange (DEX)
- Shibarium — a layer 2 scaling solution for Ethereum
Shiba Inu’s developers claim that the project is an experiment in decentralised spontaneous community building, as well as a way of creating value in the meme token market. So, what exactly is Shiba Inu, how does it work, and what does the future look like for SHIB?
What makes Shiba Inu different?
Shiba Inu is a cryptoasset that aims to be more than just a meme coin. It is a decentralised, community-driven project that offers various features and benefits to its users.
It is an ERC-20 token that allows it to be more easily integrated into the wider decentralised finance (DeFi) space. There are several applications that make up the wider Shiba Inu ecosystem, including:
- Shiba Eternity — a play-to-earn (P2E) game
- Shib.io — the Shiba Inu metaverse
- Shiboshis — a non-fungible token (NFT) collection
As is the case with other meme tokens, Shiba Inu utilises a loyal community, alongside genuine innovation, to create a unique and engaging experience for its users. Shiba Inu is less technical than other blockchain projects and is arguably more easily digestible for mainstream audiences. For many, Shiba Inu is a good entry point for learning about DeFi, compared to projects such as Ethereum (ETH).
“By studying those drawn to our project, we realize that true power doesn’t come from a single perspective, it comes from working together in harmony.”
Shiba Inu
What is the SHIB price and forecast for the future?
The 2021 cryptocurrency bull market was primarily centred around the decentralised finance phenomenon, which helped to significantly boost the price of SHIB. SHIB hit all-time highs of $0.000088 on October 28, 2021, an increase of 1,150% from the start of the month and a growth of over 8,000,000% from April that same year. That being said, the price of SHIB fell drastically in 2022, along with the rest of the crypto market.
Past performance is not an indication of future results
Source: eToro
Moving forward, SHIB offers a unique value proposition as a meme-based cryptocurrency that has real dApps built around it. While most meme coins materialise and disappear quickly, Shiba Inu has the potential to continue building a community that can stand the test of time.
Remember, meme coins are a very risky investment, even compared to other cryptoassets, so invest with caution and conduct thorough research before investing real funds.
Who created Shiba Inu?
Shiba Inu was created in August 2020 by Ryoshi, a pseudonymous entity. SHIB gained popularity and attention in 2021, which increased after the cryptoasset was listed on Coinbase, the largest US-based crypto exchange.
Vitalik Buterin has a long-standing history with Shiba Inu, after being sent half of the total supply of SHIB tokens. In 2021, Buterin donated 50 trillion tokens, worth over $1 billion at the time, to the India Covid Relief Fund. He also burned more than 400 trillion SHIB tokens, drastically reducing the cryptocurrency’s circulating supply and increasing its scarcity.
Shiba Inu helped to revive the concept of meme coins during the 2021 bull market, although the project has expanded greatly since its launch through the development of its own ecosystem.
Tip: In October 2021, the market capitalisation of SHIB surpassed that of DOGE.
Final thoughts on investing in Shiba Inu
Shiba Inu stands out in the crypto world as a meme-based cryptocurrency with real utility and applications. Unlike other meme tokens, Shiba Inu operates as an ERC-20 token on the Ethereum blockchain, granting it access to a wide range of decentralised applications.
The project has developed a robust ecosystem, including Shibaswap, Shibarium, and more. It provides an accessible entry point into the crypto space for mainstream audiences and has witnessed some significant price movements as a result.
Visit the eToro Academy to learn more about Shiba Inu and other meme coins.
FAQ
- What is SHIB used for?
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SHIB is the underlying currency of the Shiba Inu ecosystem. It is mainly used as a medium of exchange and as a governance token.
- What is Shibarium?
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Shibarium is a blockchain platform being developed by Shiba Inu as a layer 2 scaling solution, built on top of Ethereum. It aims to provide a decentralised and scalable environment for various applications, such as decentralised exchanges, gaming and NFTs. Shibarium will use the native token SHIB as its gas fee.
- Shiba Inu vs Dogecoin: what are the differences?
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Dogecoin and Shiba Inu are two popular cryptocurrencies, both inspired by the same breed of dog, but they also have some key differences. Dogecoin is a much older coin that has its own blockchain based on Litecoin’s (LTC) technology, while Shiba Inu is a token that runs on the Ethereum network.
Dogecoin transactions are faster and cheaper than Shiba Inu transactions, but Shiba Inu can leverage smart contracts and dApps through Ethereum’s blockchain technology. Dogecoin also has perpetual inflation, while Shiba Inu is capped at 1 quadrillion SHIB.
This information is for educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any financial instruments.
This material has been prepared without regard to any particular investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Not all of the financial instruments and services referred to are offered by eToro and any references to past performance of a financial instrument, index, or a packaged investment product are not, and should not be taken as, a reliable indicator of future results.
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