Shiba Inu has been making waves in the crypto market and has become one of the most hyped cryptocurrencies thanks to its active community. Some view it as one of the coins with a lot of growth potential but others feel that it is just another glorified meme coin.

The jury is still out there as far as Shiba Inu’s future is concerned, but there are a few things that you should know. It is named after the same dog breed that is used as the Dogecoin mascot. It was even branded as the Dogecoin killer. However, the main reasons why Shiba Inu stands out are its low price and inflated circulating supply.

Shiba Inu traded at $0.000007117 at the time of this press after tanking by 4.44% in the last 24 hours and 0.77% in the last 7 days. A hugely discounted performance considering that its price peaked at $0.00005 on its first day of trading on Binance.

SHIB’s price initially rallied after the Binance launch due to an influx of buyers who saw it as a discounted opportunity. Many started selling after realizing that the coin has an extremely inflated circulating amount of 39.7 trillion Shiba Inu. In comparison, there was $2.10 trillion worth of U.S dollar in circulation as of February 10 this year. SHIB currently has a market cap of $2.6 billion which explains why it has such a low price tag.

Shiba Inu’s price performance

Many investors buy a cryptocurrency such as Shiba Inu expecting it to go up in value, only to realize that it keeps dropping. This is because the large circulating supply acts as a price cap. The only way for the cryptocurrency to gain substantially for example to a penny would be if a large amount of its supply was burnt. Interestingly, the price would still be under a penny at the current market cap if half of the SHIB tokens in supply were burnt.

It is unlikely that SHIB’s supply will be slashed by more than half anytime soon. However, it might happen over the long term. There are a few key things to note about its short-term performance. It has been on a downturn after Coinbase Pro delayed its listing after reportedly encountering technical problems. The exchange also noted that the launch would be delayed and confirmed that it was still in the pipeline.

A launch on a major exchange is usually characterized by a price uptick and the same is expected for Shiba Inu. Unfortunately, the official launch date has not been announced, but it will likely take place in the next few days or weeks.  SHIB also has a robust development roadmap that includes the launch of a decentralized exchange called Shibaswap. There is also no official launch date for Shibaswap although the latest reports suggest that it is in the final stages of testing, which means it might be launched within the next few weeks.

There is a lot of excitement about Shibaswap because it will provide an opportunity for Shiba Inu holders to stake their tokens to provide liquidity where they can earn rewards. It is expected that many SHIB holders will use the opportunity to earn some passive income while holding on to their tokens. A substantial amount of the cryptocurrency is expected to be removed from circulation for the above reason and this might positively impact its price performance.

SHIBA is a promising cryptocurrency judging by the utility that it is slated to provide in Shibaswap. However, it will likely not deliver impressive gains in the near term and staking might be the best way to enjoy some potential gains.