The Rise of Meme Coins in the First Half of 2024
The first half of 2024 marked a significant surge in the meme coin market, with substantial growth that outpaced other crypto assets. In the first quarter alone, the combined market cap of meme coins increased by 1313%, making this niche the most profitable among other categories.
Notably, this trend included not only newer entrants like Brett, Dogwifhat, and Bonk but also established leaders such as Shiba Inu, a token that has withstood the test of time as the second most popular meme coin after Dogecoin. The editorial team at Incrypted delves into Shiba Inu’s features and its growth potential.
What is Shiba Inu (SHIB)?
Shiba Inu is a meme coin on the Ethereum network, inspired by the Shiba Inu dog breed. SHIB has developed its ecosystem, which includes other crypto assets, the decentralized exchange ShibaSwap, and a Layer 2 blockchain network called Shibarium.
The Project’s Development History
The Shiba Inu token was created by the anonymous developer Ryoshi on July 31, 2020, aiming to establish a decentralized community free from external control. Ryoshi positioned SHIB as a “Dogecoin killer,” using the same Shiba Inu mascot.
The initial token supply was set at one quadrillion. Trading began on Uniswap in August 2020, with a liquidity pool of 10 Ethereum and 50% of the total meme coin supply, valued at $3,000. Interestingly, the developers sent the remaining half to Vitalik Buterin’s wallet as a tribute to his contributions to the crypto industry.
In May 2021, Buterin burned 410 trillion SHIB tokens and donated the rest to charity. Currently, the total supply stands at 589.52 trillion tokens.
This move, along with ongoing community engagement in the rivalry against Dogecoin, spurred rapid growth for SHIB. From January to October 2021, SHIB’s value soared by 27,000,000%.
Ryoshi managed the project alongside a small team until May 2021, when he ceased his public updates. A year later, he surprised the community by deleting all posts on X (formerly Twitter) and deactivating his Medium profile.
Since then, Shytoshi Kusama, an anonymous developer, has led the ecosystem. Kusama launched ShibaSwap in July 2021, further popularizing the asset, and in August 2023, released Shibarium.
How Shiba Inu Works
Shiba Inu is a classic Ethereum-based meme coin with a community-driven mission to surpass Dogecoin. Although it lacks a unique application, its uses include token transfers, liquidity pooling on decentralized exchanges, and trading. In some cases, it is also accepted as a form of payment.
Project Ecosystem
The SHIB community, led by Shytoshi Kusama, has developed a relatively robust ecosystem around the coin:
- ShibaSwap
A decentralized exchange supporting the project. As of writing, it has $21.68 million in assets locked in its smart contracts, according to DefiLlama. - Shibarium
Ryoshi’s vision for expanding the ecosystem with a Layer 2 network, which currently has a TVL of only $1.59 million. - Bone
With a supply of 250 million tokens, Bone is used for transaction fees in Shibarium and project governance. - Leash
A crypto asset on Ethereum with a limited supply of 107,646 tokens, offering Bone rewards and access to the Shiboshi NFT collection and the upcoming Shib The Metaverse. - The Shib Daily
The Shiba Inu community magazine featuring project and crypto news. - Shibacals
Official merchandise featuring hoodies in various styles, with authenticity verified through attached NFTs. - Shiba Eternity
A mobile card game available on iOS and Android where players build decks and compete. - Shib the Metaverse
Shiba Inu’s planned metaverse, where virtual land can already be purchased, with a trailer available. - Shiboshis and Sheboshi
NFT collections of Shiba Inu images that grant membership to the community.
What is Shibarium?
Shibarium is an Ethereum Layer 2 sidechain based on Proof-of-Stake (PoS). Bone is used for transaction fees and governance within this network.
Launched on August 16, 2023, Shibarium was briefly halted due to user traffic. It relaunched a week later with more validators. However, as of now, its TVL remains below $2 million, and daily transactions average fewer than ten thousand.
Advantages and Disadvantages of Shiba Inu
SHIB has a straightforward goal to overtake Dogecoin by market cap, which resonates with its audience. With a low cost due to high supply, it appeals to newcomers wanting a substantial number of tokens on a modest budget.
An active community, including developer Shytoshi Kusama, is key to Shiba Inu’s growth, underscoring the project’s independence. However, associated products have minimal impact on SHIB’s price, as they lack direct utility. Thus, the meme coin’s value largely depends on community support.
How to Buy and Store SHIB
As one of the market’s most popular meme tokens, SHIB is widely available on major and decentralized exchanges. It can be stored on Ethereum or Shibarium-compatible wallets, such as MetaMask or Trust Wallet.
Shiba Inu’s Prospects
Although Ryoshi has stepped away, the SHIB community remains dedicated to its development. However, SHIB has yet to introduce any unique utility that might attract more investors.
Conclusion
Shiba Inu exemplifies how a community-driven project can evolve, even without a unique purpose. Despite potential challenges in broadening its appeal, SHIB remains a dominant meme coin due to its substantial support base.
FAQ
Where can I buy and store Shiba Inu?
Shiba Inu is available on nearly any major exchange. For storage, any non-custodial wallet that supports Ethereum or Shibarium networks will work.
What is ShibaSwap, and how do I use it?
ShibaSwap is a decentralized exchange developed under the SHIB token brand, operating on Ethereum and Shibarium blockchains. You only need a compatible wallet for one of these networks to use the platform.
What are the prospects and future of Shiba Inu cryptocurrency?
The Shiba Inu community independently develops products within the token’s ecosystem; however, none of these directly integrate SHIB. As a result, it’s challenging to view SHIB as a long-term investment, given the current uncertainty around its future utility.