- Grayscale has included the popular meme coin SHIB in the Consumer & Culture category of its Market Byte publication.
- Consumer and cultural categorizations provide context but not stability. Meme coins continue to experience rapid price fluctuations.
Shiba Inu (SHIB), which has a market capitalization of approximately $5.66 billion, has been officially classified in the “Consumer and Culture” sector under the Cryptocurrency Sector Framework developed by Grayscale Investments in partnership with FTSE Russell.
According to Lucie, Head of Marketing at SHIB, this marks a notable endorsement from one of the leading digital asset managers and a leading index provider. she said, “The foundations are strong, the vision is alive and the future is as real as ever.”
Inside Grayscale’s Crypto Sector Framework
By the way, on October 24, 2023, Grayscale will “FTSE Grayscale Crypto Sector Index Series” In partnership with FTSE Russell. The idea was to provide investors with a structured way to categorize and measure the broad crypto asset space.
According to the announcement: “Investors are increasingly interested in diversifying beyond Bitcoin and Ethereum, the biggest crypto assets.” The framework categorizes cryptoassets into five and later six sectors, each defined by use case, functional role, and builds an index based on its own rules.
This includes currencies, smart contract platforms, finance, and utilities and services, each representing a different function within the crypto ecosystem.
The other is the Consumer and Culture sector, which focuses on projects and networks that drive consumption-centric activities across digital goods and services. This includes areas such as digital art, collectibles, NFTs, gaming, and social networks.
At the time of its introduction, the consumer and cultural niche included tokens such as ImmutableX (IMX), Decentraland (MANA), and ApeCoin (APE), of which SHIB is now a part.
The Grayscale report also focuses on the U.S. Securities and Exchange Commission (SEC)-approved General Listing Standard (GLS) for commodity-based trust stocks, including spot crypto assets.
As indicated in our previous discussion, this means that exchanges can list and trade virtual currency exchange traded products (ETPs) that meet these general criteria without having to apply for SEC approval for each token individually through the normal rule change process.
Under the new rules, for a crypto asset to qualify as an ETP under the GLS, it must, among other things, be a futures contract in which the underlying commodity is traded on an Intermarket Surveillance Group (ISG) market or listed on a regulated exchange for at least six months.
In the consumer and culture space, there are only two assets mentioned as meeting GLS standards: Dogecoin (DOGE) and Shiba Inu. From the currency sector, the assets reported to be eligible are XRP, Litecoin (LTC), Stellar (XLM), and Bitcoin Cash (BCH).
The Shiba Inu team recently announced plans to shut down the legacy public Shibarium RPC endpoint, which is the gateway for wallets and decentralized apps to interact with the blockchain. To stay connected, users must update their wallet settings.
This aims to enhance decentralization and network resiliency and reduce the risk of single points of failure within the Shibarium ecosystem. Despite this, SHIB has struggled in recent weeks. token is down 5.65% within the last 24 hours, 7.3% Over the past week 6.1% 2 weeks later, and 22.3% Over the last month.
The initial SHIB supply has been reduced by a total of 410.75 trillion tokens due to continuous burn, and the current circulating supply is 589.25 trillion SHIB. Additionally, over 4 trillion SHIB are currently staked as xSHIB.
In the past 24 hours alone, the burn rate has skyrocketed by 957.88%, with 11.3 million SHIB permanently removed from circulation. This is an ongoing effort to increase scarcity and long-term value.
