You can do all the fundamental analysis you want, but sometimes winning in the financial markets comes down to pure luck and diamond hands. Don’t you believe me? Just ask early investors shiba inu (CRYPT: SHIB).
According to CoinMarketCap analysis, the coin meme it recorded a total gain of 11,430,362%, at one point before falling back to earth in 2021, despite not having any real-world advantage over other cryptocurrencies.
Shibi Inu’s record-breaking rally has kept it relevant in the cryptocurrency community, even though it is somewhat overshadowed by larger, more serious alternatives. Let’s explore what the next 12 months have in store and try to decide if the asset will skyrocket again.
Unlike more conventional blue-chip cryptocurrencies, which exist on purpose-built blockchains, Shiba Inu is a ERC-20 or fungible token programmed in the Ethereum grid. Fungible tokens are all identical and interchangeable, meaning they can be used like cryptocurrencies. And this is the main difference they have compared to the ERC-721, also known as non-fungible tokens (NFT), where each unit is unique.
The cryptocurrency’s role as ERC-20 has given it several key advantages. For starters, this strategy likely dramatically reduced the development time and cost of launching the platform compared to creating an entirely new blockchain.
ERC-20s also benefit from Ethereum’s transaction capacity, robustness of the programming language, and continuous updates. And this designation can give more confidence to an obscure token like Shiba Inu because it is associated with the well-established Ethereum network.
That said, being an ERC-20 also comes with some challenges. Shiba Inu shares the Ethereum network with thousands of other tokens, which can cause network congestion during periods of high volumes. Network fees are currently $0.32 per transaction, but can often increase to over $2.
Apart from popular stablecoins as Tiethe vast majority of major cryptocurrencies have custom blockchains. This suggests that investors may prefer them for their often superior technical performance and perceived seriousness. But while Shiba Inu struggles to shake off the stigma of meme coins, that doesn’t mean its developers aren’t trying.
They have created a decentralized ecosystem of cryptocurrency-related platforms. These include a decentralized exchange called ShibaSwapdesigned to allow users to exchange tokens and earn rewards through a process called “burying”, which is similar to staking proof of stake (PoS) networks. This process involves users locking up a portion of their tokens for a set period of time in exchange for new tokens.
