Shiba Inu has been making explosive gains over the past month. Because of these gains, the token has managed to surpass Dogecoin in terms of market capitalisation. Shiba Inu is currently the largest meme coin by market cap, making it the only meme token that has lived up to being the "Dogecoin killer."
Over the past year, SHIB's gains have increased by more than 100,000,000%. The most significant gains happened during the past month after it rallied by over 100% to reach an all-time high of $0.000086. Despite dipping to around $0.000069, the meme coin is still ranking ahead of Dogecoin.
The gains made by Shiba Inu have traders asking why the meme coin is winning over Dogecoin, despite being a clone of the original dog token.
It Is Reacting To Elon Musk Tweets
Elon Musk has been a dog token lover for the better part of this year. During the first months of 2021, when the crypto market was at its peak, Dogecoin rallied to new highs of $0.73. the coin's rally to those highs has been attributed to the constant tweets by Musk endorsing the token.
While Dogecoin lost most of the gains made during the year, Musk has continued to endorse the cryptocurrency. As a show of love for the dog token, Musk purchased a Shiba Inu dog, which was among the initial factors that ignited SHIB's rally.
Lately, most of the dog token memes that Musk has posted on his Twitter account end up having much effect on Shiba Inu and not Dogecoin.
Recently, Musk stated that he did not own any Shiba Inu tokens and that he was still a strong holder of the Dogecoin token. This admission negatively affected SHIB's prices, but it quickly bounced back to its previous highs.
The fact that SHIB failed to crash despite Musk admitting he did not own the token had many investors stating that the meme token was a stronger alternative compared to Dogecoin in terms of volatility caused by social media announcements.
Buzz Surrounding Shiba Inu's Listing On Robinhood
The gains made by Shiba Inu over Dogecoin have been attributed to the news of the token getting listed on Robinhood. Earlier this year, Dogecoin was listed on the Robinhood exchange, and it attracted a lot of attention from crypto traders, and this saw the meme token rallying to record highs.
However, Dogecoin's buzz on getting listed on Robinhood has faded, and it now seems like it is the turn of Shiba Inu to benefit from this buzz. The crypto market has recently been speculating that the meme token will be listed on the Robinhood exchange. Given that Robinhood is one of the exchanges that act as a major hub for meme tokens, SHIB listing is expected to positively affect prices.
However, Robinhood has yet to issue an official statement regarding the matter. The exchange had earlier stated that it would carefully consider all the options before making any new listings. During its Q3 results earnings, Robinhood revealed that its revenues had dropped significantly because of the reduced trading activities related to Dogecoin.
Don't Miss: Why We Think Shiba Inu Could Be The Next Big Thing
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ShibaSwap Is Also A Contributing Factor
Shiba Inu makes for the only meme token that has sought to venture into the decentralised finance sector. Dogecoin has been in the market for long, but it has failed to create any DeFi platform that will increase utility for Dogecoin in all these years.
Despite only launching last year, Shiba Inu has launched the ShibaSwap platform that allows SHIB holders to stake their tokens and earn passive income through interest. The ShibaSwap saw explosive growth since launching earlier this year. It continues to attract many investors who want to lend and borrow tokens.
The ShibaSwap platform has increased the demand for SHIB because users who want to use the platform need these tokens. Moreover, the ShibaSwap prevents users from selling their tokens, which can create selling pressure.
If a user can find a way of locking their SHIB tokens into ShibaSwap, they no longer need to keep selling their tokens during day trading, an action that helps stabilise SHIB's prices. Dogecoin does not have such a mechanism, making it lose its competitive edge compared to Shiba Inu.
It is also through ShibaSwap that the network is burning SHIB tokens. There are trillions of SHIB tokens in supply, which has created a lot of worry about its future prices. ShibaSwap has launched a token burning mechanism that is removing some SHIB tokens from supply. However, given the voluminous supply, the token burning mechanism has been criticised for only burning a small number of tokens.
Dogecoin Laid The Foundation For Shiba Inu
Shiba Inu has enjoyed blissful growth because it has benefited from the foundation laid by Dogecoin. As aforementioned, Dogecoin started its major rally at the beginning of the year, and by then, very few people knew about Dogecoin or meme tokens. The coin came into the limelight after receiving endorsement from Elon Musk, which made many people curious to know what this meme coin is all about.
After Dogecoin's gains, many meme coins came into the limelight, including Shiba Inu and Safemoon. News of people who had become millionaires from holding Dogecoin over the years made many short-term traders start flocking into these assets to find a way of making quick profits because of their highly volatile prices.
However, many people were left out of the Dogecoin rally because most gains were made by those who had prior information about the meme coin and had invested a substantial amount. Therefore, when Shiba Inu started rallying, investors who did not want to be left out of the next major meme coin rally flocked to the market and started buying.
Dogecoin's hype seems to have faded down, and it has all been redirected into Shiba Inu. Therefore, despite Dogecoin having a real use case in being accepted for payments and having endorsements from reputable investors such as Elon Musk and Mark Cuban, it has failed to attract the kind of crowd that SHIB has attracted in such a short while.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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