Shiba Inu Crypto (SHIB) is a decentralized cryptocurrency that has quickly risen to prominence since its creation in August 2020. Inspired by the popular Dogecoin meme, Shiba Inu brings the power of decentralized finance to a growing community of investors and developers. But what exactly is this canine-themed token, and what is its future outlook? This article takes an in-depth look at the origins, features, price history, and future potential of Shiba Inu crypto.
What is Shiba Inu Crypto?
Shiba Inu is an ERC-20 token that operates on the Ethereum blockchain. It was created in 2020 by an anonymous founder known only as “Ryoshi.”
The token takes its name and logo from the Shiba Inu dog breed that became world famous as the face of Dogecoin. However, while inspired by Dogecoin, Shiba Inu aims to be more than just a meme currency.
According to the project’s whitepaper, the intention behind SHIB is to be abundant and affordable for mainstream use. To that end, one quadrillion tokens were minted at genesis.
A Brief History of Shiba Inu Crypto
- August 2020 – Shiba Inu coin is created by Ryoshi. 50% of the initial supply is allocated to Ethereum co-founder Vitalik Buterin, while the other 50% is locked into Uniswap for liquidity.
- May 2021 – Vitalik Buterin donates over 50 trillion SHIB worth $1 billion at the time to COVID relief in India. This helped drive massive growth and attention to the project.
- October 2021 – SHIB reaches its all-time high price of $0.00008616 shortly after being listed on Coinbase. At its peak, the total market cap exceeded $40 billion.
- November 2021 – The price crashes down as the broader crypto market declines. By the end of November, SHIB had lost over 55% from its ATH.
- July 2022 – The long-awaited Layer 2 solution Shibarium is announced, helping boost interest in the ecosystem.
- September 2022 – There are now over 1 million token holders, indicating continued growth in popularity. The price remains relatively stable around $0.000008.
How Does Shiba Inu Crypto Work?
As an ERC-20 token, Shiba Inu relies on the underlying Ethereum blockchain to validate transactions and secure the network.
SHIB tokens can be stored in any Ethereum-compatible wallet, such as MetaMask, and transferred between addresses to make payments. The transactions are facilitated by the decentralized network of Ethereum nodes and miners.
In addition to the main SHIB token, the project also has two other coins called LEASH and BONE. These help provide incentives and governance mechanisms within the Shiba Inu ecosystem.
Key components of the ecosystem include:
- ShibaSwap – A decentralized exchange for swapping tokens and providing liquidity.
- Doggy DAO – A decentralized autonomous organization for community governance. SHIB holders can vote on proposals.
- Shibarium – A Layer 2 scalability solution currently under development.
- Shiboshi NFTs – 10,000 collectible NFTs in the form of pixelated Shiba Inu characters.
By developing this ecosystem, the pseudonymous Ryoshi aims to turn Shiba Inu into more than just a meme coin.
What is the Total Supply of Shiba Inu Tokens?
One interesting aspect of SHIB is that the total supply is intentionally abundant. In fact, one quadrillion tokens were minted at genesis.
For reference, one quadrillion is 1,000,000,000,000,000. That’s 15 zeros!
Having such a large total supply is a key element of SHIB’s accessibility. With so many tokens available, the price per token remains extremely low, allowing regular investors to accumulate millions or even billions of tokens.
As of September 2022, the circulating supply of SHIB is 589,346,914,631,298 tokens. The founding developer Ryoshi has stated that more than 50% of the original supply has been burned or removed from circulation.
What is the Current Price of Shiba Inu Crypto?
Despite its recent decline from all-time highs, the price of SHIB tokens has seen tremendous growth overall since inception:
- August 2020 – Launched with a price of $0.0000000001
- May 2021 – $0.00003 after Vitalik Buterin’s donation
- October 2021 – Hit all-time high of $0.00008616
- September 2022 – Trades around $0.000008
This represents an 80,000x increase in USD value from launch until the ATH. As of September 2022, SHIB is the #16 cryptocurrency with a market capitalization of $4.5 billion.
The price over time often correlates with overall market sentiment and developments in the Shiba Inu ecosystem. Major exchange listings also typically precede price spikes.
Factors Affecting the Price of Shiba Inu
As a relatively new cryptocurrency, SHIB is subject to the volatility and hype cycles that define this emerging asset class. However, there are some key factors that often influence the token’s valuation:
- Speculation – As a meme coin, SHIB is vulnerable to speculative manias that drive up the price, as seen in late 2021. But this demand can quickly evaporate when markets decline.
- Listings – Getting listed on major exchanges like Coinbase provides validity and improves liquidity and accessibility for new investors. This brings awareness and new capital.
- Market Conditions – Macro market factors like recessions, regulations, and trader sentiment often affect speculative assets like SHIB disproportionately.
- Developments – Upgrades to the ecosystem like Shibarium and new use cases can improve utility and boost token value. But delays and setbacks have the opposite effect.
- Whales – Large individual holders aka “whales” have outsized influence on price. If a whale dumps a huge portion of supply, it can trigger panic selling crashes.
Analyzing these and other factors can help provide insights into why SHIB’s price moves in certain directions. However, inherent unpredictability remains, particularly for such a new asset. Caution is warranted.
The Future Outlook for Shiba Inu Crypto
Given the extreme volatility thus far, making sound predictions about the future price or viability of SHIB is difficult. The crypto market tends to move in boom and bust cycles, and meme coins are among the riskiest segments.
However, there is also a chance that SHIB carves out a lasting niche. The vibrant community and abundant supply have fueled adoption so far. If the developers can deliver on the Shibarium Layer 2 promises and establish more real-world utility, there is room for the project to grow.
Mainstream corporate and retail acceptance would also benefit SHIB. Its low price and Dogecoin similarities make it appealing for exchanges and merchants to capitalize on the hype. But more evidence of sustainable demand drivers is needed.
In the near term volatility is likely as speculation remains the primary use case. But in the long run, tangible development progress and adoption could support a higher valuation. As with any cryptocurrency, nothing is guaranteed. It’s important to thoroughly research any project and only invest discretionary funds. For now, the Shiba Inu ride continues to be an unpredictable one.
Since its inception in 2020, Shiba Inu has rapidly grown into one of the most high-profile cryptocurrency projects in the world. Its brilliant marketing, rabid community, and accessible pricing helped propel it into the top 20 market cap rankings at its peak.
However, challenges remain for SHIB to transition from a primarily speculative asset and establish definitive long-term value. The coming months and years will determine whether Shiba Inu can evolve beyond its meme coin origins and generate sustained, real-world utility. But for adventurous investors, it remains a tempting lottery ticket.
Shiba Inu – CoinMarketCap
What is Shiba Inu Token? – Gemini
Shiba Inu Review – Investopedia
Vitalik Buterin Donates $1 Billion Worth of Shiba Inu Tokens to India’s Crypto Covid Relief Fund – Forbes Shibatoken.com – Official Shiba Inu website
All Hail The Shiba – A decentral community building experiment – Shiba Inu whitepaper