Shiba Inu May Still Have Some Ground To Cover, Despite This Development

Republished By Plato

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SHIB army, of late, has brought some interesting observations. AMC Theatres CEO Adam Aron announced that the theatre chain in partnership with Bitpay, will enable online payments for movie tickets using SHIB. However, this will be implemented within 2-4 months.

Shiba Inu in the big leagues

The recent development with regards to AMCTheatres could be the biggest adoption for any meme coin in the crypto space. In fact, a much bigger deal for an altcoin that is valued at $0.00005123.

The support Shiba Inu has witnessed from its loyal army over the months has finally paid off as it became the fifth only cryptocurrency after Bitcoin, Ethereum, Litecoin, and Dogecoin to witness mainstream use cases.

In fact, some even consider this SHIB development to be a catalyst for AMCTheatre’s growth in the stock market. Since the announcement on 1 November, the $AMC stock has risen from $37 to $42, even peaking at $45 on 8 November.

AMC Stock price | Source: AMCTheatres

But, the same has not been the case for SHIB itself, as the altcoin has lost well over 28.2% in the same period.

Shiba Inu price action | Source: TradingView – AMBCrypto

In any case…

Notably, just because it has been approved as a payment option does not mean it is a feasible alternative. Well, the reason is that while BTC, ETH, LTC, and DOGE all have their own blockchains, SHIB is an ERC-20 token based on Ethereum.

Further, Ethereum currently is facing a huge problem of gas fees and transactions costs. For one single transaction at the moment, Ethereum charges $55. And, as for an ERC-20 transaction, the gas fees at the lowest is $31.

Ethereum gas fees | Source: EtherScan

So, even though the cryptocurrency may not be expensive, the transaction fee is. And as a result, the cost of a $10 movie ticket could end up totaling $41.

Well, this month has already seen a bunch of investors exiting the market as SHIB’s active addresses dropped from 107k to just 15k. Despite this big announcement, Shiba Inu’s discussion in the market has gone down. Socially, it is not pulling in much traffic.

Shiba Inu active addresses | Source: Intotheblock – AMBCrypto

Thus, the abovementioned adoption news could potentially be the means of revival for an attention requisite coin. While this is good for network development and SHIB’s adoption, its practical use is still a costly dream. In the coming 2-4 months, it’d be ideal for the SHIB development team to come up with a solution to make SHIB a viable option.