- Shiba Inu (SHIB) recently surpassed Dogecoin (DOGE) by market valuation.
- The event has raised sentiments that the same could soon happen between Bitcoin and Ethereum.
- Despite SHIB’s success, leading platforms are still skeptical about listing the asset.
Shiba Inu (SHIB), the rave of the moment dog-themed cryptocurrency, finally did the unexpected and flipped long-time rival, Dogecoin (DOGE) yesterday.
While the battle has been long drawn out with SHIB repeatedly closing in on DOGE’s dominance, the flippening finally occurred as SHIB made it to 9th place in crypto rankings having reached a market capitalization of around $41 billion compared to DOGE’s around $39 billion. SHIB surged 66.80% in the last 24 hours and also set a new all-time high of around $0.000088. It is currently trading at around $0.000071.
Having crossed DOGE, SHIB fans are eying the prospect of catching up with Polkadot which currently has a market valuation of around $42 billion, as well as XRP which has a market cap of around $50 billion.
First Mover Advantage
Some interesting market sentiments have emerged from SHIB’s victorious rally even as the market is coming to terms with the shock of the event. For some market observers, the event has far-reaching significance that is not good news for Bitcoin. One crypto market pundit on Twitter, “LiveLambo,” stated that DOGE losing its position to SHIB was bad for Bitcoin as it would have the effect of making Bitcoin’s first mover advantage null and void. He noted that the Lindy effect – a model that essentially states that the longer a non-perishable item has been around, the longer it’s likely to persist into the future – would stop working for Bitcoin if it continues to be outperformed by Ethereum.
“By the way, SHIB flippening DOGE is very bad for Bitcoin. It destroys the thesis of ‘lindy effect’. People eventually don’t care about the branding if it doesn’t perform” he said.
He extends his argument by noting that the lesson to be learned is that SHIB’s better tokenomics and utility was what facilitated the flippening, adding that the same could soon happen between Bitcoin and Ethereum. He goes on to make the bold prediction that “‘the real flippening’ of Ethereum flippening Bitcoin will happen in this bull cycle.”
Why this sentiment is emerging has been noted by observers to be due to the fact that when a cryptocurrency has no extra use cases – utility, it’s a meme coin. One pundit even classifies Bitcoin into the same category and was supported by LiveLambo who noted that Bitcoin, like gold, could be called a “religious asset” without utility and would eventually underperform for this reason.
Ultimately, the expected outcome of Ethereum flipping Bitcoin according to these pockets of skeptics is that Bitcoin will “fall hard” once it stops being the number 1 cryptocurrency as its main selling point has been that it is the benchmark cryptocurrency.
Meanwhile, despite SHIB’s success, Robinhood is still not considering listing the token on its platform. The SHIBArmy Change.org petition has reached over 380,000 signatures so far, but Robinhood’s stance on the matter is yet to be swayed.