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Shiba just made it in the list of the top 20 largest cryptocurrencies by market valuation after a huge recent price rally. This ranking is cementing SHIB place as a major cryptocurrency. At the time of writing this, SHIB sits at 18th place with a market valuation of $11 billion. This is a lower rank after getting to a high of number 12 earlier on.
What is Shiba Inu Cryptocurrency?
SHIBA is a cryptocurrency whose name is got from a common dog breed Shiba Inu. There has been a general tendency of naming some cryptocurrencies with dog names. Coincidentally, they have performed great in the market. Another example of a coin using this naming strategy is Dogecoin. You can learn more about it here. Dogecoin is currently at the 10th position in a market valuation of $29 billion.
SHIBA belongs to a group of coins known as meme coins. They are cryptocurrencies associated with fun. Initially, few people took them seriously until they started making huge market moves.
Creation and Existence
SHIB is a relatively new coin as it was launched in 2020. This makes it less than 2-years old yet it already has a huge market share in comparison to its peer cryptocurrencies that have been existing for several years. SHIBA price growth has caught the investment world in shock. Very few people were expecting its price to rise too soon.
Uses of SHIBA
Initially, meme coins such as SHIBA had no major uses as they were more fun projects. However, they are evolving and becoming part of the diverse financial world. One of such roles is the use as a transactional currency.
Cryptocurrencies are transferrable from one person to another. This makes them useful as currencies. Because of the decentralization aspect of these currencies, they are getting a lot of market attention from those users who want to transact openly and without control.
Through a platform known as ShibaSwap, SHIB is gaining a key role in facilitating the development of decentralized finance. DeFI allows users to access financial services such as lending products in a decentralized manner.
This is a deviation from the traditional financial industry that is highly controlled. The concept of decentralizing finance is gaining a lot of interest lately and may become a bigger industry in the days ahead.
What is the next move for SHIBA?
Breaking into the top 20 list is just the beginning of its long journey. Its creators are engaged in a lot of developments aiming to ensure the coin maintains its position and competitiveness in the future.
As a one-year-old cryptocurrency, I would argue SHIBA has already outdone itself. However, investors claim its price is still very low and has a lot of room for growth. Currently, SHIBA is trading at $0.00003. this is after an almost 400% price gain in the last week.
SHIBA investor list is also growing with reports indicating over 700,000 people have already invested in the coin.
If this continues, it is inevitable for the coin to gain even a bigger market price in the future. This will likely help it move higher in ranking.
Are the Higher Prices Sustainable?
There have been critics who argue that cryptocurrencies like SHIBA lack any solid foundation and are likely to fail in the long term. These are opinions without any authenticity. However, you can’t wish them away. This is because cryptocurrencies are new financial assets and no one has a solid claim about potential future viability.
There are still huge uncertainties of how these solutions will coexist with the traditional solutions. Factors such as inadequate regulations and high volatility remain some of the key risks challenging cryptocurrencies such as SHIBA.