coinShiba Inu, originally marked as a meme coin, has reinvented itself and is attempting to distance itself from its meme status. According to a new report, it is aiming to achieve a status and enter the league of serious competitors in Decentralized Finance (DeFi).
One significant step towards this transformation is an innovation that will reshape the Shiba Inu ecosystem: digital identity verification.
In order to enhance the platform's credibility among users and government authorities, the Shiba Inu project plans to integrate digital identity verification into all future developments. This includes the upcoming Shibarium Layer 2 blockchain, an update that is eagerly anticipated by the community.
Digital identities, or self-sovereign identities (SSI), are essentially the digital counterparts to traditional identification documents like passports and driver's licenses. In the digital realm, SSIs give users greater control over their personal data and its online dissemination.
Currently, Shiba Inu developers are reportedly collaborating with community projects that either use SHIB or plan to build on the Shibarium blockchain in order to prioritize SSI deployment.
The project's lead developer, "Shytoshi Kusama," was the one who unveiled the ambitious goals of the project. He stated that they are currently "laying the foundation for a new global standard of decentralized digital trust and international identity verification." Shibarium is thus heralding a new digital era in which trust in systems is restored and strengthened.
Impact on Dogecoin (DOGE)
A shift in the dynamics of the crypto market may be looming as Shiba Inu's foray into DeFi could have far-reaching implications, particularly for Dogecoin (DOGE). Both SHIB and DOGE started off as meme coins, but Shiba Inu's recent maneuvers could force a reassessment of its significance.
Considering the increasing importance of digital identities and data privacy as current topics in regions like Canada and the European Union, Shiba Inu's integration of digital identities into its ecosystem could improve its reputation.
This could lead to an increase in demand for SHIB tokens, exerting upward pressure on the coin's price. In contrast, Dogecoin remains firmly entrenched in its meme coin status and may find itself in an increasingly precarious position.
However, DOGE still has its biggest fan and supporter, Elon Musk, behind it. If Shiba Inu succeeds in its DeFi transformation, it could set a new benchmark for meme coins and, in turn, put additional pressure on DOGE to redefine its strategic focus.
Furthermore, DOGE is currently experiencing more losses than Shiba Inu in the past 24 hours. Specifically, Dogecoin has fallen by nearly 4% during this period, while SHIB has only experienced a modest downward trend of just 0.4%.
While DOGE recorded losses of 7.4% in the past week, SHIB moved in the opposite direction with an upward trend of 4.5%. At the time of writing this article, DOGE is currently trading at a price of $0.073, while SHIB is trading at a price of $0.00000822.
It is worth noting that despite the notable differences in the price performance of DOGE and SHIB, the former, with a market capitalization of over $10 billion, still remains at the top of the largest cryptocurrencies by market capitalization, while the latter has a market capitalization of $4.8 billion.
The price of Shiba Inu (SHIB) has been moving sideways on the 4-hour chart. Source: SHUB/USDT on TradingView.com
Selected image from CoinDesk, chart from TradingView.
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