Coin Spotlight
2 Jan 2022

Shiba Inu (SHIB) on Spotlight

Deepan Datta

Shiba Inu, the name needs no introduction. On Coinmarketcap.com, Shiba Inu’s price page received 188 million views, making it the most viewed crypto of 2021. It has a cult fan base of 500,000 members, popularly known as SHIBArmy. In a very short period, Shiba Inu has established itself as one of the hard-to-ignore cryptocurrencies in the market, just like bitcoin and Ether. 

SHIB is the native token of Shiba Inu and is currently one of the top-performing tokens in the crypto market. Following its debut, the SHIB token has gained more than 14,000,000%. However, the coin is currently in a downward trend, losing almost 60% in value from its peak in the last one year. 

Key Token Metrics

  • Coin Rank: 14th
  • Coin Market Cap (as of 28th Dec 2021): $20.1 billion
  • Market Dominance: 0.87%
  • Coin Economics: Fixed Supply
  • Total Coin Supply: 1 Quadrillion SHIB
  • Total Circulating Supply: 550 Trillion SHIB

Technical Analysis: SHIB Price Prediction

shib
source: tradingview.com

SHIB continues to be in a range-bound movement between $0.00003937 (₹0.003223)and $0.00002934 (₹0.002317)-(plotted in the chart) and is facing downward pressure on prices for quite some time. It has reversed its momentum after touching the upper band of the Bollinger band and 20 day SMA line (orange line) is currently acting as a soft resistance. A further drop in price is expected until $0.00002934 (₹0.002458), which is a strong support level.

If it succeeds in breaking above the upper range in the next few sessions, it might move up until the $0.00004765 (₹0.003650) level, which is the next major resistance. A break below the lower range can be extremely negative for SHIB.

Note: SHIB is a highly volatile token and the insights mentioned above are time-sensitive. Kindly DYOR. 

A Brief About Shiba Inu

Shiba Inu is a dog-themed Ethereum-based ERC-20 token launched in August 2020 by an anonymous person/group named Ryoshi. It falls under the category of memecoins and is often referred to as Doge Killer by its community members. 

However, according to the whitepaper, the Shiba Inu project was developed to showcase the power of the community in successfully running a cryptocurrency project. Its founder, Ryoshi termed the experiment as an “experiment in decentralized spontaneous community building”.

To showcase the power of community, SHIB tokens started from zero value and with zero community support. 

The Shiba Inu Ecosystem

The Shiba Inu ecosystem consists of three tokens, SHIB, LEASH, and BONE. 

SHIB is the primary token and project’s foundational currency. LEASH is the native token of Doge Killer and with a limited supply of 107,646 LEASH. 

And, BONE is the governance token of the Shiba Inu ecosystem that allows SHIBArmy to vote on protocol updates and development. It has a total supply of 250 million tokens. 

Since its launch, Shiba Inu has expanded its ecosystem beyond just being a memecoin. It consists of ShibaSwap– a DeFi protocol to trade cryptocurrencies in a decentralised fashion. Shiba Inu Incubator is a platform that focuses on unique art forms other than common forms like painting, photography, etc. 

And, Shiboshis are 10,000 unique Shiba Inu NFTs created on the Ethereum blockchain that can be bought as collectables and traded. 

SHIB Token Economics 

As mentioned above, SHIB is the project’s foundational token and has a total supply of 1 quadrillion. 

1 quadrillion = 1,000 trillion

Ryoshi, the founder of the Shiba Inu ecosystem, locked 50% of the total supply on Uniswap protocol for liquidity purposes to facilitate trades. And, the remaining 50% of the tokens were gifted to Ethereum founder Vitalik Buterin. 

In 2021, Vitalik Buterin donated 10% or 50 trillion SHIB tokens, worth over $1 billion for Covid-relief support to India and the remaining 40% were burnt by sending it to a dead wallet. Thus, removing the coins from circulation. 

With the absence of any specific utility and coin economics, investment in SHIB tokens is very risky and driven by the sentiments of the community members. The token is subject to frequent pump and dump, resulting in highly volatile and unpredictable price movements.

Another factor that makes SHIB a highly speculative and risky investment is its high ownership concentration. Close to 70% of the total circulating supply is held by 14 whale wallets. Thus, selling by any of the whale wallets can trigger massive price drops. 

Whale wallet addresses hold more than 1% of the circulating supply.

Shiba Inu Future Prospects

Shiba Inu developers are currently working on the creation of a layer 2 scaling solution, Shibarium and the launch is expected before the rollout of Ethereum 2.0. 

The community plans to move all the SHIB transactions to its own layer 2 solution, which will result in a significant drop in transaction fees. It is aimed to make the Shiba Inu ecosystem more versatile and useful for the community. 

Other development plans include the launch of Shiba Inu video games in Q1, 2023, and developing its own metaverse

One of the big positives of the Shiba Inu ecosystem is its ever-growing and strong community following, which keeps the project going and viable.  

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Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

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Deepan Datta

Content Writer

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