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In view of the altcoin markets’ slowing uptrend, fun/meme tokens such as Dogelon Mars, Australian Safe Shepherd, Pig Finance, and Shiba Inu have gained a lot of traction recently, each successfully diverting traders’ focus away from them.
The Shiba Inu token, widely regarded as Dogecoin’s competitor, has already enthralled investors by returning over 1,100 percent in the last week alone. Shiba Inu (SHIB) was ranked 24th on CMC with a market value of more than $7.7 billion at the time of publication.
It is worth noting that SHIB is an Ethereum-based meme coin, and Vitalik Buterin, the founder of ETH, was expected to be the main winner of the recent hyped-up rally. Buterin possessed over 505 billion SHIB tokens, accounting for half of the overall stock. Buterin, on the other hand, sold his SHIB holdings on Wednesday.
His unexpected decision sent the token’s valuation down the tables, which was well-received by the crypto-community.
Michael van de Poppe, an Amsterdam-based technical analyst, recently took to YouTube to point out that the aforementioned hyped-up stage is not an entry point. He went on to say that he isn’t a fan of meme coins in general.
“It’s taking away the spotlight from what we are trying to achieve and build in this market.”
Post-Buterin’s dump, the alt’s price succumbed to a dramatic fall, with the tables turning the other way round for SIHB.
Even so, what’s worth noting here is that the token’s rising popularity forced the likes of FTX, Huobi, OKEx, and Binance to list it on their platforms. According to popular research analyst Igor Igamberdiev, Binance’s listing was a turning point. He said,
“The chart shows that interest in SHIB was starting to fade, but the Binance listing brought it back to life.”
Indeed, according to Binance CEO Changpeng Zhao, the exchange ran out of ETH deposit addresses due to the increased demand for SHIB. Having said that, he explained that he was “not endorsing” the token, with CZ warning investors of its “super high risk.”
SHIB has also been fueling turmoil on Ethereum’s blockchain lately. Shedding light on the hike in gas prices, Igamberdiev added,
“Because of SHIB, we are now seeing high gas prices. In the last three days, transactions with the SHIB token contract interaction consumed 10%+ of block gas.”
Highlighting the token’s illiquid nature, Igamberdiev went on to say,
“Out of the Top 10 traders’ balances, only one sold tokens in the last week… The main reason for this is the very low liquidity, which will not allow to cash out in size.”
Shiba Inu has certainly stolen the spotlight after Dogecoin’s recent bloodbath. According to CMC, the token has increased in value by more than 2 million percent since its inception. Other meme-tokens have recently fetched huge returns. Dogelon Mars (ELON), for example, saw a weekly increase of more than 768 percent, while Australian Safe Shepherd (ASS) and Pig Finance (PIG) saw weekly increases of more than 3,843 and 4,450 percent, respectively.
Any of these meme coins would struggle to gain momentum in the long run if they had a simple usage case or usefulness.