The Shiba Inu meme coin was launched in 2020, following the tremendous success of Dogecoin. The project began as a playful experiment, a common occurrence with these types of coins, but it evolved into one of the most popular cryptocurrencies on the market. SHIB is an ERC-20 token running on the Ethereum blockchain and doesn’t use traditional mining or have its own blockchain. Instead, it relies on Ethereum’s infrastructure to provide decentralized finance tools, NFT support, and an expanded set of real-world applications.
Much of the popularity of this meme coin is owed to ‘Shib Army’ – its supporters who have fueled awareness, utility, and viral campaigns. Moreover, the listing of SHIB on cryptocurrency platforms, as well as endorsements from influential individuals, further contributed to its growth. But as you will see if you take a look at shib news today, the meme coin’s current price is $0.000013, still a lot below its all-time high in 2021, and it has struggled to maintain its value throughout this year. And yet, in previous years, the meme coin has minted many millionaires. As a crypto enthusiast, you may wonder whether that’s still the case now and if you could become rich by investing in this project. Let’s find out the answer below.
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How does Shiba Inu stand out from other cryptocurrencies?
The anonymous founder of Shiba Inu – Ryoshi- created the meme coin on the Ethereum blockchain, and before its introduction, it minted its supply of 1 quadrillion tokens completely. Shiba Inu can be removed from circulation through a burning mechanism, and cannot be minted, making it a deflationary token. Unlike Bitcoin or its predecessor, Dogecoin, it also cannot be minted. Shiba Inu sparked a lot of attention after Ryoshi offered 500 trillion of the tokens to Vitalik Buterin, the co-founder of Ethereum, who burned over 40% of these tokens. As of today, the meme coin has a market capitalization of $7.50B USD, with a circulating supply of 589 trillion tokens.
Shiba Inu runs on Ethereum, and when the network transitioned from proof-of-work to proof-of-stake back in 2022, it helped support smart contracts, which can enable the development of NFTs, dApps, and other cryptocurrencies. The expanding ecosystem of Ethereum created new possibilities for staking and spending Shiba Inu; however, it was overshadowed by Ether. Not only that, but ShibaSwap (the decentralized exchange of Shiba Inu, launched on the Layer-1 blockchain of Ethereum) was also limited by speed issues and high gas fees. Due to these challenges, the developers of Shiba Inu decided to launch Shibarium – a Layer-2 blockchain with higher transaction speeds and lower gas fees compared to Ethereum, marking a major milestone in the meme coin’s history.
How did Shiba Inu gain value, and what to expect from now on?
At first, many investors viewed Shiba Inu as nothing more than a joke. However, due to its early association with Dogecoin, its listings on major cryptocurrency exchanges, and Elon Musk’s tweets about Shiba Inu dogs, the price of Shiba Inu increased. The introduction of Shirbarium and ShibaSwap further strengthened the ecosystem’s foundations. Shirbarium’s expansion is expected to attract more developers, increasing the value of the token and fueling the development of new ShibaSwap tokens such as LEASH and BONE to draw in more investors. Recently, the developers introduced a new metaverse platform, and Shiba Inu will become the default currency used to pay for virtual experiences and buy digital real estate.
But that is not all. Shiba Inu’s investors could tighten the supply of the meme coin by burning more of their own tokens, and through its payment partnerships with large businesses, the coin could gain more mainstream adoption. Suppose its price continues to rise; some crypto enterprises may even introduce their own spot ETFs for Shiba Inu, just as it happened with Ethereum and Bitcoin, drawing in more institutional and retail investors and leading to the stabilization of its price.
Due to declining interest rates, investors may be drawn to riskier assets in the years to come, while the crypto-friendly policies of the Trump administration could increase investors’ confidence in meme coins like Dogecoin and Shiba Inu.
Will you become a millionaire if you buy Shiba Inu?
Shiba Inu undoubtedly had an excellent run during the past five years, and if it achieves a 2,352,841% gain in the next five years, its market capitalization would significantly increase to $169.4 trillion, making the meme coin one of the most valuable assets. However, in order to hit such a milestone, a lot of things would need to go right for Shiba Inu, and it’s very hard to predict whether that will ever happen.
For now, Shiba Inu remains a highly volatile asset, and it’s very important to approach it with caution. While the potential for substantial gains does exist, the meme coin also poses risks of significant losses, and it’s essential to remember that past performance can’t indicate future results, and there are no guarantees that you will become rich if you buy it. Avoid putting all your eggs in one basket, especially when it comes to a high-risk asset like Shiba Inu, and strive for portfolio diversification when navigating the crypto world. Also, invest only the amount you are comfortable losing, because there’s always a risk of losing all the money you put into cryptocurrencies. Lastly, before diving into Shiba Inu’s ecosystem, take the time to understand everything about this project, from its rewards to its risks, and assess your risk tolerance, goals, and financial situation, so that you can make an informed decision about whether or not it’s the right investment for you.
The bottom line
Shiba Inu’s journey from a joke to a widely recognized meme coin demonstrates its potential and the power of community in fueling the popularity of an asset. In the past, the meme coin created millionaires, and today, it continues to build an expanding ecosystem through innovations such as Shibarium and ShibaSwap, but becoming rich from it is never guaranteed due to its highly volatile nature. Market conditions and broader crypto adoption will be essential in determining the future value of Shiba Inu. Ultimately, understanding the risks associated with this meme coin and conducting comprehensive research will help you decide if it truly aligns with your investment strategy; however, it is not advisable to rely on it as a guaranteed path to wealth.
