One of the biggest strengths of memecoins is their active communities, which make them a more reasonable investment than many people think. Now, Shiba Inu is rapidly building an ecosystem for its community that, only 13 months since the launch of its DEX, already has its collection of NFTs, liquidity pool, governance token, and future plans to launch a stablecoin and metaverse.
It may rival top DeFi and GameFi ecosystems in the near future and may make SHIB much more than a punchline in the crypto industry.
What is Shiba Inu?
Shiba Inu is a decentralized cryptocurrency based on the Ethereum network. The SHIB token plays a critical role in the Shiba Inu ecosystem as it is its token standard.
SHIB was a fork of Dogecoin. The token has a similar design to DOGE in terms of having a massive supply of coins available in the market but has a few key differences. The most notable is that SHIB has a much smaller supply than DOGE. There are only 1,000,000,000 SHIB tokens in existence, compared to the 100,000,000,000 DOGE. This lower supply gives Shiba Inu a higher potential value in the future.
Additionally, the Shiba Inu team has been involved in sustaining its market cap size and its long-term price by executing regular token burns or decreasing the supply of SHIB. If you look at the chart below, there are weeks where they burn over one billion tokens. Most importantly, they also initiated weekly burns during the 2022 crypto winter.
Footprint Analytics – Weekly Burn – SHIB
From its inception until the peak of the bull market of 2021, it surpassed 40 billion U.S. dollars in market cap.
What is more fascinating is that it has proved itself as a major robust cryptocurrency during the severe bear market of 2022. The chart below shows that it maintained a value of about five billion U.S. dollars or more during the crypto crash of 2022. The chart below shows the daily market cap value since its inception.
Footprint Analytics – SHIB Daily Market Cap
Shiba Inu was designed to be a memecoin, and it has succeeded in that regard. The token has gained a large following on social media and has even been endorsed by some celebrities. From March 27, 2021, it started with about 7300 followers to grow to 3.4 million followers in August 2022. Within 17 months, its Twitter followers grew to over 58804%.
Furthermore, unlike the hundreds of memecoins that were launched last year, SHIB is a functional cryptocurrency that can be used to purchase goods and services. Namely, prominent tech companies such as Newegg, Twitch, and AMC Theaters.
SHIB is the foundational cryptocurrency of the Shiba ecosystem. The token powers the ShibaSwap DEX and is used to fuel other applications in the ecosystem.
The Shiba Inu Ecosystem Today
The Shiba Inu ecosystem is still in the early stages of development. However, the team behind the project has made significant progress in a short amount of time.
Apart from their tokens and DEX platform, their community numbers on social media continue to grow. If we look at Shiba Inu’s monthly statistics for Twitter followers and Reddit subscribers, it all points upwards, as shown in the chart below.
The ShibaSwap DEX is live and functional, and the team is hard at work on developing new features and applications. In the future, the Shiba ecosystem plans to offer a wide range of products and services, including the following:
- Shiboshis: An official NFT collection
- Dig Liquidity Pool: By providing liquidity to its ecosystem, you can earn rewards such as BONE.
- Bury Stake Platform: Users can lock tokens to earn yield
- Doggy Dao: Lets users participate in major decisions of the Shiba Inu ecosystem
Apart from SHIB, we should analyse the market capitalization performance of BONE and LEASH to get a complete picture of the Shiba Inu ecosystem. It is essential to analyse that there have not been any dramatic price drops even during the crypto bear market of 2022. The chart below shows this.
Footprint Analytics – LEASH & BONE – Market Cap
The Shiba Inu team is composed of experienced developers and cryptocurrency enthusiasts who are committed to building a world-class ecosystem. Another metric to pay attention to is its hiring rate. In the past three months, Shiba Inu has onboarded advisors and specialists having prominent roles in Sony and Technicolor. This signifies that Shiba Inu is taking their metaverse initiative very seriously.
What is ShibaSwap?
ShibaSwap is a new decentralized exchange (DEX) that allows users to trade a variety of digital assets in a trustless and secure manner. The platform is built on the Ethereum blockchain and utilizes the 0x protocol to provide a decentralized, trustless exchange experience.
ShibaSwap’s objective is to provide a secure exchange for cryptocurrencies while still keeping it decentralized. ShibaSwap is supported by several coins. Three tokens—Shiba Inu (SHIB), Doge Killer (LEASH), and Bone (BONE)—power the ShibaSwap platform. These three coins work together to promote an open, dependable, and profitable ecosystem.
ShibaSwap is a user-friendly DEX. It provides two drop-down menus for the cryptocurrencies you would like to swap.
What is Leash (LEASH)?
LEASH was originally supposed to be a rebase. However, the team changed their minds to limit the total supply to about 107,000 tokens. Based on supply and demand theory, this extremely low supply creates scarcity explaining its high price. Its all-time high was over $7,000 in May 2021.
It is an ERC-20 token that is also used to promote liquidity. When users provide liquidity to a pool on ShibaSwap, they receive xLEASH tokens in return. These tokens can be staked in order to earn a share of the trading fees generated by the pool.
If we look at the total wallets that hold LEASH, we cannot really make a quick conclusion about its future upward trajectory as its data sample is a few months old. Additionally, the number of wallets has been choppy, but it has been trending upwards.
Footprint Analytics – Total supply of SHIB & LEASE
What is Bone (BONE)?
The third native token of ShibaSwap, Bone is an ERC-20 token used to govern the platform. Two hundred fifty million tokens are its maximum supply. It’s intended to serve as a voting token for future ideas that the SHIBArmy can use to exercise its democratic rights.
In terms of its future, there are some noteworthy data starting with the number of wallets that hold BONE. Since the creation of BONE, it has gradually increased over time.
As BONE is still a relatively new token, we also see a decrease in whale holding, which also decreases a chance of a rug pull or price manipulation downwards. The chart below shows this pattern of whale holding amounts.
Projections for the Shiba Inu Ecosystem
The ShibaSwap DEX has the potential to become one of the most popular cryptocurrency exchanges based on the current data we have seen. In addition to its low fees and user-friendly interface, ShibaSwap is well-positioned to attract a large number of users in the future.
The consistent increase of wallets in the Shiba Inu ecosystem, robust projects stress-tested during a crypto crash, key hiring’s, and growing community for Shiba Inu are very strong signs of its sustainability in the blockchain world. The team is committed to building a world-class ecosystem, and the community is behind them every step of the way.
The future prospects of Shiba Inu are great as they will be developing their own stablecoin and metaverse. If you’re looking for a cryptocurrency project to invest in, Shiba Inu has both great fundamental and financial data.
It is critical to note that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly. Always do your own research before investing any money.
August 29, 2022 Mike Antolin
Data Source: Footprint Analytics – Shiba Inu Dashboard
This piece is contributed by Footprint Analytics community.
The Footprint Community is a place where data and crypto enthusiasts worldwide help each other understand and gain insights about Web3, the metaverse, DeFi, GameFi, or any other area of the fledgling world of blockchain. Here you’ll find active, diverse voices supporting each other and driving the community forward.
Footprint Website: https://www.footprint.network
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.