Shiba Inu: The Best Of The Good Boys – Searching For Alpha | Jewelry Dukan

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Summary of the thesis

Shiba Inu (SHIB-USD) has seen some price volatility over the past few weeks. Although this started out as a memecoin, today this is a thriving ecosystem with a lot of user and developer support. That The launch of Shibarium could be a huge leap forward for SHIB. However, given the risks of a coin like SHIB, I will wait for confirmation that the broader crypto market has bottomed before dipping my feet.

price action

Over the past few weeks, the meme coin Shiba Inu (SHIB) has witnessed an upward movement, mainly driven by an increase in the token’s burn rate. In just twenty-four hours, between August 23rd and 24th, over 200 million SHIB tokens were burned by the Shiba Inu community.

SHIB price

SHIB Price (Trade View)

The burn rate of SHIB increased by over 99% as whale pockets burned large amounts of SHIB. In two separate transactions, a wallet sent 111,635,927 SHIB tokens to a burn address. In the first transaction, the Mystery Wallet sent 61,708,497 SHIB tokens to the Burn address, followed by another 49,927,430 SHIB tokens. These burned tokens are taken from the circulating SHIB supply forever. Over the years, 41% of the entire Shiba Inu supply has been incinerated. Of the 999 trillion SHIB that were once in circulation, over 410 trillion have been burned.

The Shiba Inu community estimates that 111 trillion SHIB tokens could be burned over the next year.

Shibarium is coming

Shiba Inu plans to release a layer 2 blockchain on Ethereum. SHIB tokens are Ethereum ERC20 tokens. Ethereum has been plagued by high gas fees and occasionally slow transaction confirmations. ERC20 tokens, which rely on the Ethereum network for transaction processing, have been hit by the problems of high gas fees and slow transactions.

With the release of Shibarium, transaction fees will be negligible or even zero, according to the Shiba Inu developers. Shibarium will also have a SHIB burning mechanism and act as a bridge for other blockchain projects.

The need for a Layer 2 solution was imperative for the SHIB ecosystem after the introduction of Shiboshi NFTs – a collection of 10,000 SHIB-based NFTs. When the Shiboshi NFT collection was launched, many users who attempted to participate in minting missed out on owning a Shiboshi NFT, even after spending hundreds of dollars in gas fees in some cases.

Shiba Inu’s ambitious roadmap

Shiba Inu is transforming from a mere meme coin into a full-fledged ecosystem. On the Shiba Inu roadmap, there are plans for a Layer 2 solution, a blockchain game, a Metaverse project, a DAO platform, and several other interesting projects.

  • Shiba Eternity: Eternity is a card game based on SHIB and developed in cooperation with PlaySide Studio. The game is already available for early testing, currently only in Vietnam. The game was presented at Gamescom 2022.

  • Doggy DAO: To truly decentralize the growing Shiba Inu ecosystem, Shiba Inu plans to create a decentralized autonomous organization called Doggy DAO to give the Shiba Inu community – popularly known as the ShibArmy – voting rights in important future decisions in Shiba Inu ecosystem.

  • ShibaSwap 2.0: ShibaSwap is a decentralized exchange (DEX) that allows users to swap tokens, stake tokens and add liquidity to pools. Version 2.0 of ShibaShap will include new features including a SHIB burning portal.

  • SHI Stablecoin: Some ecosystems have released their own stablecoin. Shiba follows this move with a planned release of its own stablecoin, which will be known as SHI. A reward token called TREAT will also be introduced alongside SHI.

  • ShibaNet: ShibaNet will be a decentralized marketplace where users can buy and sell goods using the SHIB token. It runs on Shibarium’s Layer 2 blockchain, taking advantage of the very low gas fees and high transaction throughput that Shibarium will offer.

  • Shib.io Metaverse: The Shib.io Metaverse will include more than 100,000 parcels of digital land spanning four districts – growth, defense, technology and currency districts. Shiba Inu has teamed up with The Third Floor, a longtime Marvel Studios collaborator and partner, to build the Shib.io Metaverse.

risks

SHIB is down about 80% from its all-time high it hit in October 2021. The entire crypto market, and by extension the stock market, is still facing macroeconomic headwinds such as inflation and monetary tightening. In a recent article on Bitcoin (BTC-USD), I even discussed how the cryptocurrency could drop to $14,000.

Furthermore, although SHIB has a strong community behind it, this is still a memecoin and there are many competitors in this space that are arguably better in terms of technology and development.

However, there is room for a long-term uptrend in SHIB price. Trading volume has steadily increased over the past few weeks as whales burned large amounts of SHIB tokens. Alongside the SHIB burning, there have been huge SHIB buy orders, with an example of a whale amassing over 52 billion SHIB in a single transaction. With the roadmap and releases planned for the coming months, SHIB is bound to get new money.

Bring away

Shiba has grown into a solid project. So, Shiba Inu is always in the news, and for good reason. The “ShibArmy” is a strong community, as evidenced by their activity on crypto-Twitter. Shiba Inu developers have a great passion for the ecosystem and have followed the roadmap. Shiba Inu has secured some solid partnerships that other dog-themed cryptocurrencies could only dream of.

SHIB is definitely an interesting token given recent developments, and I like it more than its cousin Dogecoin (DOGE-USD). However, given the risks and volatility, I would advise waiting for confirmation of a bull market in the broader crypto space.

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