If you thought crypto was all serious, you’d be pleasantly amused to find out that two joke projects command trillions of dollars in valuation and are among the top 20 by market capitalization. Today we will discuss how Shiba INU could be the biggest catalyst for Crypto Adoption!
It may be a head scratcher for the “serious” folks, but for online crypto enthusiasts, especially fans of Bitcoin casinos games on leading platforms like BC GAME for fun, it shows how crypto is diverse and exciting.
For illustration, Dogecoin seals the top-10 with a market cap of $29 billion, while Shiba INU is at 16th and super liquid with an envious market cap of $11.4 billion. At these levels, these two joke projects aren’t what they seem to anyone but reveal a shifting trend, especially among investors and traders.
For all the FOMO, their liquidity competes with elite coins. DOGE and now SHIB have found support in leading cryptocurrency exchanges. As always, the broader the exchange support, the better the exposure and the more capital the project tends to attract.
However, to better understand why there is this shift in investor and trader behavior, partly explaining the rise of meme coins, it is good to search for guidance from history. Specifically, we look at how Elon Musk, the “crazy” scientist and the world’s richest, ignited the “meme” coin powder keg, permanently changing how the world viewed cryptocurrencies and, yes, meme coins.
What are Meme Coins?
First off, a meme coin is a cryptocurrency like any other, riding on the popularity of the blockchain and the buzz that comes out from successful projects in the space.
All meme coins are first founded as a joke, experimental projects. Their initial success is based on the marketing effort done by the founding team. They are usually minted out for fun, often mimicking other projects without any expectations from the developers. Often, when the initial excitement dies down, the project’s ranking and valuation fizzle out with the hysteria.
Dogecoin was the first meme coin using Shiba Inu as its official mascot. Palmer, the original designer, meant to create a competitor of Bitcoin, launching the project back in 2013. At that time, the Shiba INU meme was an internet sensation. Not surprisingly, Dogecoin’s launch coincided with the rapid success of Bitcoin when prices for the first time pumped to $1 as Chinese investors flew in. The project also found tailwinds from the popularity of the Shiba INU meme. The merger of a Bitcoin “clone” and the popular meme made for a perfect combination allowing Dogecoin to survive all those years. Besides attempting to “clone” an existing project out of fun, the objective of as of now is to make a quick buck.
The success of Dogecoin opened doors for enterprising crypto developers to find a way to make their own clone projects. Considering the success of Dogecoin—and how late most investors were—SHIBA and other Dogecoin-inspired projects like Safemoon were an instant hit, hitting the ground running to command billions.
Why is the rise of Shiba INU different from Dogecoin?
Dogecoin had a relatively small community until 2020, when Elon Musk began marketing the project even in May, stating that he was the Doge Master during the SNL show.
However, let this not cause confusion. Despite inspiration from a meme, Dogecoin is a fully functional project that works like Bitcoin. Funds can be sent cheaply while the blockchain can be secured energy-efficiently.
Shiba INU took from the same base but with a different objective. Royshi, the anonymous developer, wants “an experiment into decentralized spontaneous community building.” The project has a plan, and because of the meme roots, it has quickly gained traction because of relatability, especially among internet users, where memes are a standard in most social media circles.
Besides, the sharp rise in meme coins valuation and popularity in 2021 now makes investors reassess their stand on these projects. While some may not have real-world utility, designed to make quick money, and as parodies to existing successful projects, meme coins can be primary drivers for crypto adoption.
Shiba INU in Driving Crypto Adoption
Newbies would have an easy time in the space if there is a project they can refer to anchored by social media memes and merged with blockchain to create a cryptocurrency without the necessary jargon describing other “serious projects.”
With the increasing popularity of cryptocurrencies and blockchain in recent years, support from celebrities like Elon Musk and Snoop Dogg, for instance, and listing on other non-trading sectors like online crypto gambling platforms like BC GAME does help in the cause, further promoting crypto adoption.
Furthermore, since cryptocurrencies are not going anywhere anytime, meme coins would continue shaping the space, onboarding more users keen on being part of the growing community.