Crypto Weekly: The elephant in the room Crypto Weekly: The elephant in the room Crypto Weekly: The elephant in the room

Crypto Weekly: The elephant in the room

Cryptocurrencies 8 minutes to read
Mads Eberhardt

Cryptocurrency Analyst

Summary:  In just a year, a cryptocurrency launched as a joke, has advanced to be the ninth largest cryptocurrency with a market capitalization of close to $40bn, followed by another joke cryptocurrency being the 10th largest cryptocurrency, underlining the speculative fever in the crypto market.

Shiba Inu from $0 to $50bn in a year

Let us start by talking about the elephant, or dog if you will, in the room. The Ethereum-based token Shiba Inu has surged over the last year to exceed a market capitalization last week of more than $50bn. Its market capitalization has since declined to around $40bn, while it is currently being the ninth largest cryptocurrency. Shiba Inu was anonymously launched in August 2020, releasing a whitepaper, or as Shiba Inu calls it: “woof paper” due to the cryptocurrency being inspired by a dog. At launch, 50% of the supply was locked to be traded in the decentralized exchange Uniswap, whereas the other half was sent to Ethereum co-founder Vitalik Buterin. The latter later burned 90% of his Shiba Inu tokens, while donating the remaining 10% to the India Covid Relief Fund. Not surprisingly, Shiba Inu was fundamentally launched as a joke, heavily inspired by Dogecoin, another cryptocurrency launched as a joke back in 2013. Shiba Inu supporters call the cryptocurrency a “dogecoin killer”. Using a 2021 term, both can respectfully be called meme coins like meme stocks such as GameStop.

Along with Dogecoin, which has a present market capitalization of $36bn, the two cryptocurrencies are not benefitting the crypto market as a whole. The crypto market is broadly known as a wild west compared to the traditional financial industry, lacking a regulatory framework and arguably some normality. For the market to achieve mainstream adoption and not remain a niche to a select few, it needs to discard the wild west perception. In such circumstances, having the ninth and 10th largest cryptocurrencies with a combined market capitalization of approximately $75bn being obvious jokes, is not making it easier to shred the wild west perception. On the contrary, it keeps the masses away, both in terms of users, developers, and traditional market participants, as fewer participants want to be deeply involved in a market widely perceived as frivolous. To some degree, this shows the current challenges of the crypto market obstructing it to go fully mainstream.

Crypto companies are raising money at a fast pace

Venture funds and other investors currently have a strong sentiment on companies within the cryptocurrency industry. Today, Digital Currency Group, the owner of several crypto-related companies such as Grayscale Investments, the world’s largest digital asset manager, raised $700mn from SoftBank and Google’s venture capital arm. In late October, the cryptocurrency exchange FTX raised an additional $420mn by BlackRock among 68 other investors on top of its massive $900mn funding round in July. This follows a third quarter, which was a record quarter in terms of venture funding being invested in cryptocurrency- and blockchain companies. In the third quarter, companies raised a total of $8.2bn across 302 rounds compared to the former record quarter of $4.38bn raised in Q2 this year.
Source: Saxo Group
Source: Saxo Group

Saxo Capital Markets (Australia) Limited prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments.Saxo Capital Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Capital Markets or its affiliates.

Please read our disclaimers:
- Full Disclaimer (
- Analysis Disclaimer (
- Notification on Non-Independent Investment Research (

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000

Contact Saxo

Select region


The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide, Product Disclosure Statement and Target Market Determination to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation. The Target Market Determination should assist you in determining whether any of the products or services we offer are likely to be consistent with your objectives, financial situation and needs.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.

Please click here to view our full disclaimer.