Learn Cryptocurrency
10 Feb 2022

Why Shiba Inu is Different From Other Memecoins

Devansh Sinhal

Shiba Inu is one of the most popular cryptocurrencies, ever. Part of the reason for this is that the coin returned more than 49 million percent to its investors in 2021.

Yes, you read that right.

A $1 investment in SHIB at the start of the year would have become worth more than a million dollars at the end of it.

Key takeaways

  • Shiba Inu returned more than 49 million percent to investors in 2021.
  • It has numerous functionalities, which makes it a little different from other memecoins.
  • ShibaSwap, adoption by AMC and Newegg, the development of Shibarium, and Shiba staking are some of the top growth boosters for the network.
  • The highly dedicated and active Shiba community, SHIBArmy, deserves most of the credit for the token’s rapid fundamental growth in late 2021.

Then why aren’t investors blindly jumping on the SHIB bandwagon?

Because the token was also one of the most volatile at the time, even by cryptocurrency standards. Shiba Inu was not averse to rallies or crashes of 25% or more in a single day in 2021. It still isn’t.

To make matters even more desolate, there are a lot of people who believe that the token does not have any “fundamental value” or “real-world utility”, compared to coins like Ethereum. While ETH can function as a store of value and as a smart contract development platform at the same time, Shiba Inu can’t even come close to that kind of functionality.

Is it a Memecoin?

Memecoins are cryptocurrency tokens that are intended to have no real value and are created as a joke. For instance, Dogelon Mars.

Another characteristic of memecoins is that they tend to react aggressively to news and social media. Dogecoin, for instance, shot up by more than 150% in A SINGLE DAY back in April of 2021.

Is it JUST a Memecoin?

By definition, Shiba Inu, too, seems to be a memecoin. However, there’s one key aspect of the token that investors miss. 

It’s the fact that Shiba Inu has a lot more to it than what’s apparent. It is not JUST a memecoin.

Here are some applications of Shiba Inu and the SHIB coin that say so.

Why Shiba Inu Is Different From Other Memecoins

ShibaSwap

ShibaSwap is a decentralized exchange (Dex) based on the Shiba Inu project. ShibaSwap allows users to swap their tokens on the platform without having to depend on third-party intermediaries. Users, hence, can use it to swap their tokens in a permissionless manner instead of having to rely on platforms like Kraken.

Shiba community

The existence of ShibaSwap is a testament to the fact that the Shiba Inu community (popularly known as the SHIBArmy), the large group of people who believe Shiba has intrinsic value, is a solid entity and is dedicated to the project’s success. 

Shiba staking and smart contracts

Just like Ethereum, Shiba Inu’s network allows users to stake their coins to earn regular rewards. Staking is the process in which coins based on Proof of Stake (PoS) can be pledged on the network for validating and approving transactions. This stake can also be seen as a form of investment that miners make in the network, and block rewards generated from said verifications act as returns.

Hence, miners holding substantial quantities of Shiba Inu can stake those coins on the network to establish passive income streams. These protocols stand testament to how effective Shiba Inu is with its smart contracts.

Shiba network governance

SHIB, LEASH, and BONE tokens can also be used by users to vote on issues in the Shiba Inu network. These act as governance tokens, allowing users to participate in discussions about the growth of the network and make key decisions about its future from time to time.

Scalability

Shiba Inu is also an environmentally-friendly token because it does not need miners to verify transactions on the blockchain manually. With the Proof of Stake model, miners on Shiba Inu can leverage their SHIB holdings on the network to verify transactions, reducing the amount of energy required substantially.

This functionality enables Shiba Inu to become scalable with time and incorporate more users. Because the network doesn’t need more mining power with increased adoption, Shiba Inu is well placed to become one of the most scalable currencies out there.

Shiba Adoption Around the World

SHIBArmy is one of the most active crypto communities in 2022. According to wallet estimates, the SHIBArmy consists of more than 1 million HODLers who are optimistic about the bright future of the token.

Their dedication has not been entirely futile either. Here are the top developments in the Shiba Inu space that indicate a potentially bright future for the token:

  • Acceptance of SHIB as a valid payment option – Newegg Commerce, a tech-focused online retailer, and AMC Entertainment, the popular movie-theater chain, announced in late 2022 that they would accept SHIB tokens as valid forms of payment. 
  • Development of Layer 2 solution – Shibarium, a layer-2 blockchain project currently in development, aims to make the Shiba Inu network more scalable and reduce transaction times.
  • Potential listing on Robinhood – Shiba’s listing on Robinhood Markets will, in itself, be a big achievement for SHIB, since Robinhood is one of the largest equity and crypto exchanges based in the United States. The SHIBArmy has gathered more than 5,00,000 signatures on its online petition on change.org to coerce Robinhood to list the coin on its platform.

Why SHIB Has More Adoption

Perhaps, the increased adoption of Shiba Inu can be attributed in a major way to its community. It is interesting how Shiba’s Twitter has more followers than Ethereum’s, that too by a large margin. With the Shiba community working constantly on making the token more adaptable, more and more people are joining their ranks, and as they do, the token is slowly making its way to the top. 

If you want to invest in Shiba Inu in India, you can do so via CoinSwitch. However, we encourage you to make investments keeping in mind your risk appetite and portfolio design.

Click here to buy Shiba Inu directly on CoinSwitch.

Click here to convert Shiba Inu to INR directly.

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.

writer

Devansh Sinhal

Content Writer

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