Shiba Inu (SHIB) has been highly volatile through the bear market of 2022. The altcoin has since risen to position 14, overtaking Solana (SOL) and other altcoins by market capitalization. SOL-FTX troubles in the first week of November made its value drop by 50%.
SHIB has now seemingly stabilized, consolidating before assuming its next price movement. Shia Inu’s ecosystem developments indicate more positive growth as the crypto industry sentiment recovers.
What makes Shiba Inu stand out from other feature-rich coins? Despite claims of little coin utility, SHIB has outperformed major coins in the market, such as Solana, Avalanche, Tron, Chainlink, and Uniswap. In the following sections, we shall explore 3 reasons why Shiba Inu outperforms major altcoins.
Shibarium layer 2 hype
Since November, SHIB has gradually risen in value, reaching 50% price growth at the peak. Analysts attribute the price growth to the anticipated launch of Shibarium.
Shibarium is a layer 2 blockchain that the Shiba Inu ecosystem seeks to adapt before the end of the year. Like Ethereum, Shibarium will allow developers to create Smart contracts and decentralized applications on its blockchain infrastructure. Developers will, for instance, be able to develop their unique tokens on the Shibarium blockchain.
The layer 2 solutions will reduce gas fees and increase transaction speeds. With the increased utility, SHIB will be more than just a ‘meme’ coin.
Shytoshi Kusama, Shibarium’s principal developer, has hinted severally at Shibarium’s impending release.
Shiba Inu altcoin token burn
In April 2022, Shiba Inu released a burn portal for reducing the number of SHIB tokens in circulation. According to Shibburn on chain stats, the ecosystem has managed to burn 410,383,034,258,257 tokens to date.
In November alone, the ecosystem burnt 666,903,322 SHIB.
While ideally, the token burn should increase its value, it has had little impact on its price owing to its huge supply.
The community anticipates the launch of Shibarium to hasten the SHIB burn rate, estimated at 100 trillion tokens per annum. Rising use cases will also scale the use of SHIB, increasing its value.
Growing Shiba army
The number of people interested in SHIB has been at record highs since the ‘meme’ became famous. Hype and a fear of missing out (FOMO) drove the token’s value for the longest time.
Crypto whales have also had an appetite for the token. According to Coinmarketcap, the top ten SHIB addresses hold 62.57% of all the tokens in circulation, while the top 100 hold 81.71%.
Whales have always had an impact on prices. In September 2021, a whale purchased 6.178 SHIB worth $100 million, and the token reacted and soared 1000% to an all-time high (ATH) of $0.00008. The whale later dumped the tokens into the market and made millions in profit.
Crypto.com’s proof of reserves indicated that 20% of their reserve consisted of SHIB tokens worth about $556M. The revelation came as a surprise to investors who avoided the coin due to its high volatility.
Shiba Inu also has a huge following on social media; on Twitter, it has over 3.6 million followers. The rise of new products and services like the Shiba Eternity play-to-earn game is responsible for the uptick in interest.
Final thoughts
Shiba Inu is, without a doubt, one of the most hyped ecosystems in the crypto industry. The coin has attracted corporate and retail users equally, and few coins can measure up to Shiba Inu’s performance.
With many scheduled developments, their accomplishment will profoundly impact the coin.
Currently, the coin is weathering the crypto winter meaning its investors expect massive growth as the market recovers.
Also, read Shiba Inu’s price prediction for 2023 – 2031.
