Shiba Inu coin (SHIB) is a cryptocurrency that was created in August 2020 by an anonymous founder named Ryoshi. Inspired by Dogecoin, Shiba Inu coin started off as a meme coin without much real utility. However, the developers have since created an ecosystem around SHIB with the aim of making it more than just a joke cryptocurrency. This article will examine the purpose and utility behind Shiba Inu coin to determine if it serves a real use case or is still just a meaningless meme token.
What is the purpose of Shiba Inu coin?
According to the project’s “Woof Paper”, the main purposes of Shiba Inu coin are:
- To be an experiment in decentralized spontaneous community building
- To provide a cryptocurrency that is affordable and accessible to the masses
- To create a vibrant ecosystem around Shiba Inu coin and its community
In essence, the goal of SHIB is not just to be a meme coin, but to evolve into a cryptocurrency with real utility and value. The developers hope to build an ecosystem of products and services that utilize SHIB as the native currency.
Does Shiba Inu coin have any utility?
At launch, Shiba Inu coin had no real utility. However, the developers have been working to change this by creating an ecosystem of products and services around SHIB, including:
Decentralized Exchange (ShibaSwap)
ShibaSwap is a decentralized exchange platform that allows users to trade SHIB, stake their coins for rewards, and provide liquidity. The exchange also supports trading other ecosystem tokens like LEASH and BONE. This gives SHIB some utility within its own ecosystem.
The developers launched a collection of 10,000 Shiboshi NFTs in August 2021. These provide utility by allowing holders to name future Shiba Inu ecosystem tokens. The more Shiboshis held, the more influence the holder has over ecosystem naming rights.
Metaverse (Shiba Lands)
Shiba Inu coin is developing a metaverse called Shiba Lands where users can explore, play games, and interact using SHIB and other ecosystem tokens. This will provide a practical use case for the cryptocurrency within a virtual world.
SHIB can be used as a payment method for certain goods and services, although adoption is still low. As more merchants accept SHIB for payments, this will improve its utility as a currency. Some notable vendors accepting SHIB include:
- AMC Theatres
Is the Shiba Inu ecosystem enough to give the coin purpose?
While the Shiba Inu ecosystem provides some real-world utility for SHIB, there are differing views on whether this is enough to make SHIB more than just a meme coin.
The case for SHIB having purpose
Proponents argue that SHIB now has some tangible utility, especially within its own ecosystem products like ShibaSwap and Shiboshi NFTs. As adoption of these products grows, demand for SHIB will increase, giving it inherent value. SHIB is also inexpensive and accessible, providing a low barrier to entry for crypto investment. The vibrant community around SHIB demonstrates it is more than just a meme coin.
The case against SHIB having purpose
Critics argue that the current SHIB ecosystem is still too small and niche to provide real utility. Things like meme NFTs and niche metaverse games do not constitute a sustainable business model long-term. Pure payment utility is also minimal currently, with little incentive for merchants to accept SHIB. Trading volume on ShibaSwap is also low compared to large exchanges. Since speculation and hype drove its initial surge, some believe SHIB is still mainly a meme coin subject to pump and dumps.
Technical Analysis of Shiba Inu Coin Price and Market
To further evaluate whether SHIB has real lasting value, we can analyze price charts, market data, and trading indicators. Here is a technical analysis of SHIB’s price and market performance:
|August 2020 (Launch)||$0.0000000001|
|October 2021 (All Time High)||$0.00008845|
SHIB saw massive gains in late 2021 driven by hype before crashing. It has failed to recover anywhere close to its peak since then.
|Market Cap Rank||#13|
|Market Capitalization||$7.3 billion|
|24hr Trading Volume||$135 million|
|Circulation Supply||549 trillion SHIB|
Despite dropping in price significantly, SHIB still has a high market cap. However, trading volume is much lower than during its peak hype.
Key technical indicators for SHIB currently show:
- The 50 and 200 day moving averages are sloping downwards, indicating a long-term downtrend.
- The Relative Strength Index is below 50, indicating bearish sentiment.
- MACD recently had a bearish crossover below the signal line, pointing to negative momentum.
- Bollinger Bands are tightening, suggesting low volatility and trader indecision.
Overall, technical analysis points to SHIB being in a bearish and uncertain market. This signals that hype and speculation are falling, further calling into question SHIB’s underlying value.
In summary, Shiba Inu coin now has some legitimate utility through its ecosystem of products and services using SHIB. However, the current practical uses are still limited, with most utility existing within the insular Shiba Inu ecosystem itself.
Pure payment utility remains minimal, and technical indicators suggest the massive gains in 2021 were likely driven by temporary hype and speculation, rather than true demand for SHIB based on fundamental value.
While SHIB may be evolving away from its original meme coin status, it likely still has a ways to go before achieving lasting, real-world utility and purpose. Much of the ecosystem remains speculative, and community passion does not necessarily translate into sustainable value.
So in conclusion, while Shiba Inu coin has taken steps away from its meme origins, it has yet to demonstrate enough practical utility and fundamental value to determine that it serves a lasting, meaningful purpose. The long-term outlook remains highly uncertain. What happens next for SHIB will ultimately depend on if the developers can successfully execute on its vision of creating a vibrant ecosystem and utility around the token.