'Collectible NFTs' fail to bolster SHIB utility: An exercise in futility?

‘Collectible NFTs’ fail to bolster SHIB utility: An exercise in futility?

12 January 2023

in SHIBA

Reading Time: 4 mins read

Shiba Inu has announced the launch of its limited physical collectible NFTs to augment SHIB utility.
The limited collectible will be for its genesis Shoboshi NFT holders.

Shiba Inu [SHIB] has devised a unique strategy to pique the interest of its audience by announcing plans to create collectible NFTS and physical items for its genesis NFT holders.

Read Shiba Inu’s [SHIB] Price Prediction 2023-24

On 10 January, Shibtoken announced a partnership with Buggati alongside the news of its collection’s impending release. Titled the genesis Shiboshi NFT, the collection will also be available as a tangible item, which is consistent with some fashion companies’ aims to offer customers the best of both worlds.

We can’t wait to share with you some exciting moments, in this our first collaborative #Shiboshis partnership set to bring physical items and collectible NFTs to the hands of our most devoted and supporting @Shibtoken‘s NFT genesis holders

2/7 🧵 pic.twitter.com/XrKa5zWhNi

— Shib (@Shibtoken) January 10, 2023

Accumulation continues as Shiba Inu finds utility

As a fork of the Uniswap token UNI, Shiba Inu is a digital token that was developed in August 2020. SHIB has a distinctive feature – 10% of the token total amount is burned with each transaction. The burn will gradually cause the total supply of the token to decline.

However, the price movement has not been favorably impacted despite the burns that have occurred throughout time. Its lack of utility has also been a problem, which a thriving ecosystem could help. Additionally, if Shibarium is ever launched, the SHIB token may receive the utility for which its owners have been clamoring.

A good amount of SHIB tokens are being accumulated, according to data from Dune Analytics, despite the token’s apparent lack of utility. An upward trend in the accumulation level was visible in the graph below.

Source: Dune Analytics

However, the observed figure showed that the number of daily active users has been quite low. This is to be expected, as there is no practical use for the meme coin, and the primary motivation for any transaction is accumulating it.

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SHIB uptrend bucked?

On a daily time scale, SHIB was observed to be on an upward trend for some days. However, it had already lost over 5% of its gains at the time of writing. The price of the token was about $0.00008. If the price trend continued to decline, its support level near $0.00007 should hold.