It all started as a joke. A competition between a parody and a parody. Shiba Inu, which launched in 2020 as a parody for Dogecoin, now ranks No. 9 with a market value of over $38 billion, surpassing Dogecoin which ranked in Top 10 with a market value of over $35 billion, according to CoinGecko as of Monday.
Both two meme cryptocurrencies are competing in market since Wednesday, as the two have rivaled in positions within Top 10 in the rankings quite frequently. In fact, the Shiba Inu community refers to the token as the "Dogecoin killer."
Their rise to popularity is due to the driven supporters behind them. "The Dogecoin community and the Shiba Inu community are both very, very vocal and committed," explains Caitlin Cook, who is the head of community at crypto asset management tech company Onramp Invest. "It's the power of the people who are amplifying it that kind of drives the performance a lot of the time," she says.
Shiba Inu’s market shot-up because Elon Musk tweeted a picture of his shiba inu puppy. Musk clarified on October 4 that he doesn't own any shiba inu tokens and that he only owns Bitcoin, Ether and Dogecoin.
This goes to show that these cryptocurrencies are vulnerable to price fluctuations based on who's talking about them - which makes investing quite risky.
Shiba Inu is attractive to quite some investors because it offers a quick profit return. Experts forewarn the public of a possible loss of investment as an outcome when investing in cryptocurrency. In, general, they advise to invest in an investment vehicle where one can afford to lose the invested amount, regardless of which cryptocurrency is chosen.
Cryptocurrency, generally, is a high-risk investment. Prior to investing anywhere, it is vital to contemplate on an investment's long-term potential.
How things will unfold for Dogecoin and Shiba Inu is something that no one really knows. As Douglas Boneparth says. "The future of either depends on wide-scale adoption and use in our current financial system."