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What is Shiba Inu (SHIBA) digital currency?


 What is Shiba Inu (SHIBA) digital currency? And why is its price exploding?

The crypto market has always been said to be difficult to predict, whether it is the prices of its digital currencies or its general trends.

What is Shiba Inu (SHIBA) digital currency?

The arrival of Bitcoin, Ethereum, and others to record levels has made the world's attention turn to this young market, which has grown very quickly to $ 2.5 trillion in just over a decade.

The crypto arena's growth, maturity, and prosperity have made some new trends in the crypto market stand out strongly with no clear and logical explanation for them.

The Dogecoin cryptocurrency exploded in 2021, rising from a price below $ 0.01 for most of January to an all-time high of $ 0.68 set last week, according to Nomics.

But there is a new puppy coin on the scene, and it has also exploded in the past few days.

What is SHIB?

“Shiba Inu” is its name, and “ERC20” is a standard built on the Ethereum blockchain.

The SHIB digital currency suddenly and quickly emerged as an alternative to the digital currency “Dogecoin”.

It is possible to say that the SHIB digital currency is a replica of the DOGE coin, especially since the “doge” is actually a descendant of the “Shiba Inu” as well.

Yes, the two currencies compete together, not with the technical solutions presented or the established goals, but which one captures the hearts of investors by showing the cutest dog of the "Shiba Inu" breed, which appears as a slogan for both of them

According to CoinGecko, the current price of SHIB is estimated at $ 0.00002898 (as of this writing), which means an increase of 22,772% over the value of the coin 30 days ago, and the coin witnessed a 1527% rise in the last week alone.

CoinGecko does not offer a market cap or ranking for SHIB yet, but CoinMarketCap indicates that the coin's market value has reached nearly $ 11.4 billion, placing it in the 20th place in terms of total coin value by its benchmarks.

The price of the “SHIB” coin has increased by more than 2 million percent since its inception (July 31, 2020, according to CoinMarketCap), much higher than Bitcoin or Ethereum since its inception.

This is wild for a coin that appears to be out of nowhere.

While still well below Dogecoin's current market value of $ 64 billion, making it the fourth most valuable coin as of this writing, Shiba Inu has also seen bigger gains in recent times.

Where is the SHIB coin available?

The SHIB digital currency can be purchased via trading platforms such as Binance, Huobi Global, and OKEx.

The currency is also traded on decentralized trading platforms (DEX), such as Uniswap, 1inch, and 0x.

SHIB's price soared in the past few days after it was listed by Binance after apparently massive demand from users.

CZ CEO Binance tweeted on May 10 that Binance ran out of ETH deposit addresses due to SHIB today and that this had never happened before for any other ERC20 coin.

 But while Binance will benefit from higher trading volumes, its CEO warned of potential risks in the future, as he indicated:

The currency carries a very high risk.

What is the story of SHIB?

Besides being an Ethereum-based meme and a Dogecoin rival, what exactly is the “Shiba Inu” project?

According to the official website, SHIB was created as an experiment in building a decentralized automatic community, and it is the first of its kind in several digital currencies, all of which are planned under the dog breed or in relation to it.

“LEASH” is another currency that was issued, but it is in limited quantities, and its price has increased dramatically (according to CoinMarketCap).

Besides LEASH and SHIB, there is also a dog bone as the logo.

The “Shiba Inu” project promises to launch the “ShibaSwap” decentralized trading platform (DEX). There is even a “white paper” detailing the team’s plans, but up to the hour is just promises on a website page.

A total of 1 quadrillion SHIB was minted, and the anonymous developers behind “Shiba Inu” sent more than half of the total offer, just over 505 trillion SHIB, to the title of Ethereum founder.

Developers treat this amount as "burned" or removed from the market, which could increase the value of the currency that is still available for circulation, but the Ethereum founder already has access to his received coins.

If much of this sounds silly or even illogical, you are probably not alone in this thinking.

But Dogecoin had long been considered a "joke" cryptocurrency before 2021 became its year and became the talk of fans such as "Mark Cuban" and "Elon Musk".

Can the "SHIB" digital currency follow a similar path to "DOGE"?

When it comes to price spikes, it has already happened.

As for the expectation of doubling the investment in the SHIB currency tenfold, it is difficult, if not impossible, because in the crypto market everything is possible, but for the SHIB currency to rise 10 times, this means that its market value will also rise to the level of $ 110 billion (considering its current market value Estimated at $ 11 billion), which means that it will become the third-largest cryptocurrency and surpass BNB ?!

The above article explains what the project is, and we recall that the currency appeared out of nowhere and its value rose to already record levels, so when you want to enter it, you must think several times before doing so.