The cryptocurrency world is volatile and ever-changing, with some projects rising to fame and fading into obscurity rapidly. Shiba Inu (SHIB) is the same and not an exception to this trend. SHIB skyrocketed in 2021, reaching its all-time high of $0.000089. Since that peak, the price of Shiba Inu has been on a downward trend. However, is it dead?
We delve into five reasons why Shiba Inu is still alive in 2023.
The SHIB Hype
SHIB gained immense popularity in 2021 as a decentralized meme token inspired by the Shiba Inu dog breed. Despite being incepted into the space as a joke token, the coin garnered a dedicated community and a massive market capitalization. The SHIB ecosystem has also grown massively.
Like any other meme coin, the initial hype was bound to die at some time. However, there are a number of factors that contribute to Shiba Inu’s existence and relevance in the crypto landscape.
Some of the reasons why the project is still standing include:
1. A Strong and Passionate Community
Shiba Inu’s active and passionate community is one of its most significant strengths. With many memecoins, there is a period when they experience a swift decline in interest. However, SHIB’s community has proven to be resilient. With the social media revolution, having something essentially worthless is very valuable by just making it a trend and creating an artificial demand.
Its supporters are having fun with the memecoin, making it a trend on most social media platforms.
The support of the community extends beyond just holding and trading tokens. They also actively contribute to the project’s growth and sustainability through different activities, which include ecosystem development.
If this community continues to grow and is still growing tremendously, the token will continue to have a strong community behind it, making it withstand the test of time.
2. ShibaSwap and Ecosystem Development
SHIB recently launched its decentralized exchange (DEX), ShibaSwap. This has helped increase the utility of SHIB while making it more valuable in the eyes of investors. Users can stake farms and trade different tokens within the ecosystem, adding more utility for SHIB tokens.
ShibaSwap continually evolves, with different features and incentives to attract liquidity providers and traders. The commitment to the development of its ecosystem plays a vital role in SHIB’s resilience and its appeal to DeFi enthusiasts, contributing to its current state.
In addition, is the Shibarium blockchain, a Layer 2 Ethereum scaling solution mainly created to optimize the transaction capabilities of the Shiba Inu coin. Its primary approach of improving transaction speeds and costs could attract a broader user base to SHIB, potentially driving up demand and its price.
3. Expanding Ecosystem
The token ecosystem has evolved and expanded over time, which shows just how the project is not resting when it comes to its achievements. There are new tokens, such as LEASH and BONE, introduced in the Shiba Inu ecosystem to offer added utility and investment opportunities for the community.
LEASH (The Doge Killer) is an ERC-20 token with a limited supply and serves as an inflationary hedge. The token rides the social influence of the Shiba Inu token and also its popularity. This makes it the most significant factor behind its success.
On the other hand, BONE serves as the governance token of the ShibaSwap decentralized exchange. Some of these additions serve as tools to easily diversify the ecosystem, which makes it more attractive to a broader range of investors and participants.
This ability to adapt and grow shows that Shiba Inu is far from dead.
4. SHIB Burn Mechanisms
The Shiba Inu burn mechanism, SHIB burn, entails burning SHIB tokens. You burn a coin or token by removing it from circulation permanently. This is done by sending coins or tokens to an address that can receive but cannot send crypto. As a result, this reduces the overall supply of Shiba Inu tokens over time. The deflationary model is a critical driver in maintaining and increasing the overall value of the token.
SHIB burns are calculated using three unique addresses, including two dead wallets with no obtainable keys and tokens sent to the Genesis address (Black Hole). The project’s implementation of such a mechanism shows its commitment to success and sustainability.
5. Impressive Market Capitalization
Measuring a crypto asset by its market capitalization shows just how it is performing in a market. Any asset with a large market cap means that the asset is stable since most investors buy and sell it. When an asset has a relatively large market cap, it is, in most cases, unlikely to be affected by unexpected shocks in the market.
SHIB has an impressive market cap of $4.5 billion. With such a market cap, ongoing hype and increased burn mechanisms may push the token to even higher prices from its current price of $0.000007697.
Investors are always asking whether SHIB will rise again in the future. Although we cannot be sure of what will happen, many indicators show that SHIB might become even more popular in the future. While the market remains highly volatile, Shiba Inu has shown its ability to adapt, grow, and maintain a dedicated following. As long as these factors remain in play, Shiba Inu may stay alive in the ever-evolving world of cryptocurrencies.
However, it is crucial to note that the price of SHIB may be affected by factors such as market conditions, user adoption, and the strength of its community.