Cryptocurrencies are a relatively new asset class, but that doesn’t mean that it took them that much time to become popular with investors. The assets’ ability to provide full anonymity and the lack of intermediaries have attracted many traders, especially those who are very particular about being in full control of their assets. Recently, meme coins have been growing in popularity as well, with more and more investors looking to add them to their portfolios. The more accessible price points and cultural significance have led investors to see them as a valid asset class.
Shiba Inu has become one of the most popular holdings in this category due to its strong focus on community, scarcity-based model, and commitment to decentralization. However, in order to ensure the success of your ventures, you must check Shib news today and always be up-to-date with the latest changes in the marketplace. That is the only way to make sound choices that ensure your enduring success.
What is SHIB?
Shiba Inu coin, also known as Shib, is a decentralized crypto system originally launched in August 2020. Much like Bitcoin, the individual or group behind the launch remains a mystery, being known only by the pseudonym “Ryoshi.” The coin is inspired by the Japanese dog breed of the same name, a representative of which also serves as the Dogecoin mascot. In fact, after Shib’s whitepaper was released almost five years ago, some experts referred to the coin as a “Dogecoin killer,” expecting the two to become competitors. The introductory branding for Shiba Inu also referred to it as a potential contender for Doge.
Shiba Inu is indeed categorized as a meme coin by most investors and market experts, but the thing that makes it different from its peers is its supply limit. Shib is intentionally abundant, unlike BTC, which was designed with scarcity as one of its fundamental features. The total supply is a whopping 1,000,000,000,000,000, or one quadrillion. One of the main concerns traders have when it comes to Shiba Inu is the heightened level of FOMO associated with the ventures. Even retail investors have engaged in frenzied buying in the past, showing that it can be quite a challenge to remain disciplined in this environment.
In October 2021, the market recorded a considerable increase, growing by 240% in a single week. A few months prior, in May, Ethereum’s co-founder Vitalik Buterin donated more than 50 trillion Shiba Inu coins, the rough equivalent of $1 billion at the time, to the COVID-Crypto Relief Fund. He made a second donation the same month, giving $665 million to the Future of Life Institute, which focuses on the creation of a regulatory framework for artificial intelligence development in order to prevent the existential risk that could arise from highly advanced AI used for malicious purposes.
90% increase
The fourth quarter of 2024 has been beneficial for the coin. On November 8th, data showed that the price had jumped by nearly 80% year-to-date. While that is a considerable rally, it is still considerably lower than those of its memecoin rivals, Dogecoin and Pepe. The former climbed by 115%, while the latter recorded a monumental 668% in gains during the same time frame. Pepe’s growth can be regarded as a shining example of what the hype for meme coins can achieve. However, some investors believe that these movements are a natural progression in the coin’s journey to consolidation. As such, many believe that a price boom is currently in the making and that it is only a matter of time before the bull rally picks up speed.
The most significant signal in this regard is the ongoing cup-and-handle pattern. This metric has a distinctive teacup shape with a downward drifting handle. It indicates a breakup as the upside target is measured by adding the maximum height to the breakout point.
Capital rotation
The concept of capital rotation refers to shifting capital from one blockchain environment to a different one in order to keep up with the latest trends, economic cycles, and marketplace conditions. It can be challenging to know when is the best time to do this in an ecosystem as changeable as that of cryptocurrencies, in which things often seem erratic and chaotic. Right now, many analysts believe that the reason Shib has underperformed Dogecoin is due to Elon Musk’s promotion of the Department of Government Efficiency, an initiative aimed at decreasing federal spending in the United States.
Musk endorsed Doge in the past, and the fact that the initials of this agency are the same hasn’t gone unnoticed in the trading environment. The crypto marketplace is fueled by hype and the latest developments, and having a well-known name attached to a coin on top of that is guaranteed to result in considerable gains. However, some have also pointed out that Dogecoin’s relative strength index indicates that the asset is overbought at the moment, which means that a downside and price correction event could occur at any moment.
Shib’s RSI is in a neutral area, meaning that there’s plenty of room left for growth in the near future. If market conditions remain stable, analysts suggest that SHIB has room for upside development and that the current prices are nothing more than the result of a cooling-off period.
Token Burn
14,372,556 Shiba Inu coins were removed from circulation in a single transaction as part of a sizable token burn. This procedure requires moving all the coins to a dead wallet that is entirely inaccessible. The reason for that is to create more scarcity and increase value by reducing the supply. This token burn, in particular, has been part of ongoing efforts to decrease Shib’s huge supply. In February, almost 400,000,000 coins were burned as part of 134 transactions. Some analysts nonetheless believe that the rate is not enough to have a lasting impact on the price. In order to build momentum, the coin has to break above two key resistance levels and aim for $0.00003.
If you’re an investor, remember to create a personalized strategy that will help you achieve your goals. It’s the only way to protect your capital and ensure the choices you make won’t lead to sizable financial losses. For real-time updates on SHIB price action and trends, follow reputable sources and consider tools like Binance Insights.
