Shiba Inu gears up to compete with DeFi tokens, unveils plans for digital ID verification


  • Shiba Inu developers plan to tie digital identity services to all SHIB platform applications to strengthen the utility of the project. 
  • The project aims to be viewed more legitimately by serious investors, a Shiba Inu representative told CoinDesk.
  • SHIB price climbed nearly 5% over the past week as the DeFi ecosystem tokens tackle Curve-exploit-induced crisis.

Shiba Inu, a crypto project that gained popularity as a meme coin, is gearing up to find utility among serious investors. A representative of the Shiba Inu blockchain told CoinDesk that SHIB has plans to implement digital identity verification for applications in its ecosystem. This could bring SHIB to par with its peers in the DeFi ecosystem.

Interestingly, DeFi is currently tackling the crisis situation of Curve Finance’s exploit and the subsequent liquidity crisis faced by the CRV token. While DeFi projects and crypto influencers pool their resources to tackle the downfall of the entire ecosystem, Shiba Inu developers are working to compete for higher adoption.

Also read: Could whale activity in AAVE, APE, COMP, IMX and LDO lead to a steep correction or a new rally?

Shiba Inu eyes Self-Sovereign Identity concept, moves away from meme coin status

In an attempt to drop the “meme coin” status associated with its identity and compete with DeFi projects on a wider scale, Shiba Inu’s developers are gearing up to assign a digital ID verification feature to applications in its ecosystem.

The project has chalked plans for wider adoption and finding utility among governments and serious investors, through an identity verification feature, inspired by the Self-Sovereign Identity (SSI) concept.

SSI is the digital counterpart of identity-related documents like passports. It is said to enhance user control over their data and its distribution in the digital world.

Shiba Inu lead developer, Shytoshi Kusama, told CoinDesk that the team is laying the groundwork for a new global standard in international identity verification. The SHIB ecosystem currently has BONE, TREAT and LEASH tokens for applications built on its Layer 2 network.

The timing and nature of these developments are key to Shiba Inu emerging as a contender to DeFi tokens and blue chips in the market. The entire DeFi market is reeling from the aftermath of the Curve Finance exploit and the dwindling liquidity of the CRV token. The token is used in several liquidity pools throughout the ecosystem and pledged as collateral for DeFi loans. CRV’s massive price decline and shrinking liquidity have therefore emerged as key concerns for market participants.

During DeFi’s crisis, users are likely to adopt new contenders like Shiba Inu, with features like identity verification and higher privacy/decentralization compared to most other projects.

Shiba Inu is trading at $0.00000820 at the time of writing.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.


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