In recent years, the cryptocurrency industry has witnessed the rise of niche asset classes that have become major players in the market during bull markets. In the previous cycle that abruptly ended in 2022, NFTs and meme coins dominated the scene. As experts suggest that Bitcoin and the rest of the market have already entered a new bull cycle due to recent price explosions, the community is eager to see if a new trend will emerge or if history will repeat itself with a certain asset class.
One such meme coin that has been making waves is Shiba Inu. After trailing quietly behind Bitcoin and other altcoins for a few weeks, Shiba Inu recently experienced a surge in value. The native token of the protocol skyrocketed by 130% on a weekly scale, reaching a multi-month peak of $0.000022. This impressive growth propelled SHIB to become the 13th largest cryptocurrency by market cap, which currently stands at almost $12.5 billion.
Meanwhile, Dogecoin, the original meme coin and currently the largest by market cap, holds the 10th spot with a market cap of over $19 billion. With Shiba Inu closing in, the question arises: can SHIB surpass its older brother? ChatGPT, a popular AI chatbot, identified five key factors that will determine which meme coin emerges as the largest.
1. **Community Support:** Shiba Inu boasts a strong and active community, a crucial element for meme coins to gain traction and sustain momentum. Continued support from the community could significantly contribute to SHIB’s growth.
2. **Market Sentiment:** The success of meme coins is heavily influenced by market sentiment. Positive sentiment, fueled by hype and speculation, has the potential to drive Shiba Inu’s price higher and increase its popularity.
3. **Listing on Major Exchanges:** Accessibility and liquidity are crucial for meme coins like Shiba Inu. Being listed on major cryptocurrency exchanges can attract more investors and traders, thereby boosting its market presence.
4. **Development and Innovation:** Continuous development efforts, such as the introduction of new features and initiatives, can enhance Shiba Inu’s appeal and utility. This, in turn, may lead to an increase in demand for the coin.
5. **Competition:** The cryptocurrency market is fiercely competitive, with numerous meme coins vying for attention. Shiba Inu faces competition from other meme coins, each offering unique features and garnering their own community support. Despite this, the Shiba Inu team has been proactive in updating the protocol with new features like Shibarium.
The future of meme coins, particularly Shiba Inu, remains uncertain yet promising. With its recent surge in value and growing community support, SHIB is well-positioned to challenge Dogecoin’s dominance in the meme coin market. However, only time will tell if Shiba Inu can indeed surpass its older counterpart and emerge as the largest meme coin in the industry. As always, investing in cryptocurrencies carries inherent risks, and it is essential for investors to conduct thorough research and exercise caution when entering the market.