Any crypto enthusiast already understands the meme-coins and their entry into the market. After the massive Dogecoin rise to become a top 10 cryptocurrency based on the market, it was obvious some other meme-coins would come up to rival it. At the moment, Shiba Inu is this competing coin.
Dogecoin has struggled in recent months, with Elon Musk & Tesla who were championing it, going silent. Instead, the Shiba Inu has taken the new front seat with others already branding it the “Dogecoin killer.”
Launched in May to join the rising memecoins and the entire crypto market frenzy, Shiba Inu is currently on an unprecedented growth pattern. Such runs have picked up following Elon Musk’s tweet of a picture of its Shiba Inu puppy called Floki. The tweet with the caption “Floki Frunkpuppy” drew attention to the memecoins with most of the interactions seeing it as an approval.
The growth in Shiba Inu’s value can also be tied to market activities. A whale purchased 6 trillion SHIB tokens before the price could skyrocket. It had also gained massive traction when Vitalik Buterin, Ethereum co-founder, donated to an Indian crypto relief $1 million worth of SHIB.
The coin has also gained market approval due to its recent listing on Coinbase, a leading crypto exchange. The listing has ensured easier retail access for those wishing to trade the coin. At the same, the coin has also launched Shibaswap, a decentralised exchange (Dex).
Shibswap has more than $364million total value locked (TVL) and other various crypto tokens tethered to the platform like Bone and Leash. Today the bone is swapping for 1.86453375 while Leash is swapping for $2538.2866.
Is Shiba Inu’s price increase sustainable in the long run?
Dogecoin’s recent struggle has seen the questions on the sustainability of the memecoins raised. After ranking among the top 5 cryptos, Dogecoin is currently ranked 10th with a market cap of $29,426,120,863.The crypto community has raised concerns Shiba Inu can take the same route.
Erick Demuth, co-founder of Bitpanda crypto exchange has claimed the market is seeing a similar rally as it did with Dogecoin. “These new coins are very community, hype and fun driven. But, on the other hand, they are not making use of any new tech or solving problems as bitcoin or Ethereum do.” He said.
However, he also reiterated Shiba Inu’s relevance in today’s market which is community-driven. Crypto exchanges like BitPanda would therefore be looking to list it as demand increases.
Some of the market participants have also expressed concerns that Shiba Inu might never reach $1. Other than the lack of a real-world solution, the speculative nature of Shiba Inu’s investors also makes it more volatile.
Should you invest in Shiba Inu?
As speculative crypto, this is the right time to invest in SHIB. Already, the coin has experienced a more than 300% increase in value in September. As various crypto exchanges plan on listing it, there is the likelihood of value increase. However, you shouldn’t have it for the long term investment plan given the likely unsustainable long term growth.