The 2022 market crisis has had a detrimental impact on Shiba Inu (SHIB), a meme coin that totally skyrocketed in value in 2021; getting it the nickname “Dogecoin Killer”. Shiba Inu, however, has tried to negate its “meme” status by incorporating a variety of decentralized finance (DeFi) and non-fungible token (NFT) features. Shiba Inu also boasts of a devoted group of followers who call themselves “Shib Army” and are highly active on social media.
However, even if all these sound good on paper, the reality is much different. With lackluster performance in the past few years, both price-wise and development-wise, many are led to question if the Shiba Inu cryptocurrency is dead.
Here are the top 3 reasons as to why many believe, Shiba Inu is close to calling its hay days a final goodbye:
1. No Real-World Use Case
The Shiba Inu coin’s lack of usefulness or practical application is the primary and core factor. The coin was not intended to run an ecosystem of flourishing applications or programs. Shiba was just created using the same marketing gimmick as other meme coins and primarily for clinching the meme status in the crypto market.
Although the project has tried to shift gears in recent times — understanding that meme-culture won’t help them in the long run — they haven’t been successful. Even though one can argue that, the SHIB token can be used as a means of payment due to its support on various payment gateway, the argument gets ruled out as users prefer a stablecoin over any other cryptocurrency.
The same cryptocurrency which was once hailed to dethrone the ruling Dogecoin, has been surpassed by other newer meme coins in the market. Shiba has faced steep competition from the likes of Baby Doge, Dogelon Mars & others. It’s not that these new coins are superior to Shiba Inu in any form, but many tend to believe, meme coins are mostly trend based. Once the trend ends, so does the coin.
However, Dogecoin, which is its primary competitor, is in a different league all together. It was the first-ever coin to pioneer the meme culture in the community. It first came into limelight when the Dogecoin community came together to raise $30,000 to fund the Jamaican Bobsleigh team for their trip to the 2014 Winter Olympics. Not only did it show its usefulness but also later got recognition from the likes of Elon Musk, Mark Cuban & others.
3. Supply & Selling Pressure
As per CoinMarketCap, the total supply of Shiba Inu stands at 589 Trillion which is currently in circulation on the open market. And, according to Shiba Inu’s rich-list data, which can be googled easily, shows that almost two-thirds of SHIB’s total supply is held by only 10 wallets. Even Shiba’s own audit report shows that more than half of its available supply is held in just 4 wallets.
This raises concern for many investors as the price can be manipulated by those whales. And this directly corresponds to the fact that, every day, a large number of tokens get dumped into the market by the whales. This has caused significant damage to Shiba Inu holders, who are helpless in this scenario. Even though there is a coin burn mechanism, there’s a slim chance of price appreciation due to the growing sell-pressure SHIB faces.
So, Is Shiba Inu Really Dead?
Over the years, the crypto space has proven to favor those who churn out innovations and developments; making an impact in the real world. Even if not all, the market has slowly and steadily got ridden of projects which are merely for cash grabs, zero innovations or outright scams.
Shiba Inu faces a tough time ahead with its meandering prospects — jumping from a Decentralized Exchange to creating the next Metaverse. And, until the project lands a major breakthrough, the future does seem to look bleak for the once-famous “Dogecoin Killer”.