How to Understand the Shiba Inu Coin Frenzy and Its Difference from Dogecoin
Recently, Dogecoin has been extremely popular, but in the last couple of days, Shiba Inu coin, also known as the “Shib” token, has become even hotter.
Surging 236% in a single day, the “Shib” coin was recently hyped again by Musk, the bellwether of Dogecoin. A single tweet ignited the entire crypto sphere, with some investors reportedly turning a 3,000 yuan investment into 600,000 yuan.
From a cheap灞卞甯?(altcoin) to the hottest cryptocurrency with the highest global gains, Shiba Inu (Shib) took just 2 days.
On May 8, the price of Shiba Inu coin once skyrocketed over 251%, with trading volume reaching 40.3 billion yuan, topping Weibo’s trending topics and even surpassing Dogecoin in popularity. So, what exactly is going on here?
A netizen revealed that Musk discussed Shiba Inu coin on the US variety show “Saturday Night Live,” claiming it would rise to $1.
Subsequently, Shiba Inu (Shib) exploded in a short period, topping the gainers’ list on major exchanges. As of May 9, the daily trading volume for Shiba Inu coin skyrocketed by 1297.64%, and its market cap surged by 359.31%. The intense market activity briefly caused outages on major trading platforms.
However, Dogecoin experienced a major crash. As of 9 PM Beijing time on May 9, Dogecoin’s price had fallen by over 39% from its peak.
So, what are the connections and differences between Shiba Inu coin and Dogecoin?
You cannot mention Shiba Inu coin without mentioning Dogecoin.
Back in 2013, Bitcoin was continuously rising and gaining a massive following.
The founder of Dogecoin, who was an engineer at the time, found this phenomenon utterly absurd. He later imitated Bitcoin and launched a virtual currency using a Shiba Inu dog as its logo鈥擠ogecoin.
Dogecoin doesn’t have much technical merit; rumor has it that even its algorithm was plagiarized. It can almost be seen as a type of gaming token. Its total supply is a staggering 100 billion coins. Unexpectedly, its low barrier to entry and strong entertainment value led to its rapid rise in popularity.
Because of its larger supply, lower price, and faster transfer speeds (transaction confirmation takes only 1 minute, compared to Bitcoin’s 10 minutes), it is very suitable for online tipping.
In the US, Dogecoin has its own cultural background, such as tipping culture, charity culture, and grassroots culture.
Like many virtual currencies, the annual issuance of Dogecoin decreases over time. Its inflation rate stays at about 5% per year and will continue to decrease. By design, after 20 years, the inflation rate will be only 2.5%, similar to fiat currency.
Its appreciation cannot be separated from Musk’s endorsement. Every tweet he posts is seen as a major positive catalyst by speculators. Ironically, Dogecoin was originally created to satirize the speculation of virtual assets, but now it has become the very object of speculation.
Shiba Inu coin is extremely similar to Dogecoin. Both are tokens, and both were hyped into fame by Musk.
The total supply of Shiba Inu coin is one quadrillion tokens, far exceeding Dogecoin’s 100 billion. 50% of the total supply was sent by the founding team to the wallet of Ethereum founder Vitalik Buterin, while the other 50% was locked in the Uniswap exchange. The project’s developer team claims to have destroyed the keys to their accounts.
They hold no reserved tokens, so everyone must buy them on the open market.
So, is it still worth buying? Do ordinary people still have a chance?
Can its price skyrocket in the future, just like Ripple or Dogecoin?
Currently, Shiba Inu coin is listed on 49 exchanges, and recently it was also listed on Huobi and OKEx. Taking Huobi as an example, the 24-hour trading volume for Shiba Inu coin is close to 10 trillion, with a circulating supply near 500 billion. The turnover rate is very high, with constant changing of hands. There are buyers and sellers, and trading is extremely active. Both the 24-hour turnover and volume far exceed those of other cryptocurrencies.
Dogecoin’s recent plunge is closely related to Shiba Inu coin. As a very similar coin, it is definitely s