Shiba Inu outpaces Dogecoin: See what is fuelling its rise

Shiba Inu Coin

Meme cryptocurrency token Shiba Inu has surged nearly 68 percent in a week, outpacing its rival token Dogecoin and establishing its place at nine in the top 10 cryptocurrencies based on market capitalisation.

Shiba Inu also dubbed as “Dogecoin killer” is priced at $0.00006984 at the time of writing this article, according to Coinmarketcap. On October 28, the meme token touched all time high at $0.00008616 after a Change.org petition urged crypto trading platform Robinhood to list Shiba Inu. “Let’s encourage Robinhood to be the first traditional brokerage to get on this train!” the petition stated.

Shiba Inu, which was created in August 2020 by an anonymous person who uses the moniker Ryoshi, is modelled on Dogecoin. The coin has been named after the Japanese dog breed, Shiba Inu. The alt coin’s logo is based on the Shiba pup.

Related Article: Shiba Inu coin price: Meme cryptocurrency hits all-time high

The alt coin aims to be Dogecoin’s Ethereum-based counterpart. Ethereum is a community-run blockchain technology powering the cryptocurrency ether (ETH).

The two meme cryptocurrencies have been swapping places in rankings quite frequently since last week. Dogecoin, currently ranked at 10, had earlier managed to outpace Shiba Inu and claimed its peak as the most valuable meme cryptocurrency with a nearly 38 percent rise last weeADVERTISEMENT–Ads by

While the massive gains make meme cryptocurrencies almost irresistible, it comes with extreme price volatility and risk. Unlike Bitcoin, which is hosted on its own blockchain and is aimed at creating a decentralised ecosystem providing maximum utility, altcoins like Shiba Inu and Dogecoin can be hosted on the Ethereum blockchain and depend on community growth.

Dogecoin is also endorsed by billionaire Elon Musk who has time and again highlighted his trust in the meme currency.

Caitlin Cook, head of community at crypto asset management tech company Onramp Invest told CNBC that the two alt coins share a key characteristic that both the coins are largely driven by community

“It’s the power of the people who are amplifying it that kind of drives the performance a lot of the time,” she said.While uncertainty looms around cryptocurrency globally, the meme currency still has a long way to go before it is taken seriously especially in comparison to its much stronger counterparts like Bitcoin. However, the meme currency is now too valuable to be laughed off.

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