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What Is Shiba Inu?
Shiba Inu (SHIB) is a decentralized ERC-20 token that is hosted on the Ethereum blockchain network. The token is one of three tokens in the Shiba Inu ecosystem and features the Shiba Inu as its mascot, a breed of Japanese hunting dog. The token is regarded as a meme token because it was launched to serve as a parody rather than a digital currency that provides utility.
In October 2021, the price of SHIB soared ten-fold from USD$0.0000084 to USD$0.000087. By the end of that month, its market capitalization was an estimated $51.4 billion. At the time of writing, Shiba Inu is the 13th largest cryptocurrency in terms of market capitalization, with a value of approximately $24 billion.
The Origins Of Shiba Inu
Shiba Inu was created in August 2020 by an individual or group of individuals referred to as “Ryoshi”. The guiding principles and framework of the Shibu Inu ecosystem are outlined in a “Woofpaper” which can be read on the Shiba Token website. The initial supply of SHIB tokens started at quadrillion with 50% of those locked in Uniswap to ensure ongoing liquidity. The other half was provided to Ethereum co-founder Vitalik Buterin for safe-keeping.
The Shiba Inu (SHIB) token is one of three tokens that form the Shiba Inu ecosystem. SHIB is the foundational token whilst “Leash” and “Bone” are the other tokens. The Ecosystem also features a DeFi platform called ShibaSwap and an NFT marketplace known as the Shiba Inu Incubator.
According to the “Woofpaper”, SHIB is hosted on the Ethereum blockchain network due to its security and robustness. The Ethereum network consistently receives upgrades including EIP-1559 and is currently moving to a Proof-of-Stake consensus model.
Can SHIB Be Staked?
Since Shiba Inu tokens are hosted on the decentralized Ethereum blockchain network, investors can stake SHIB tokens using a supported wallet or staking pool on a top cryptocurrency exchange. Users who staking SHIB contribute to the security and governance of the Shiba Inu network.
In return for validating and verifying SHIB transactions, they are rewarded with new tokens which are added to the circulating supply. Cryptocurrency investors can stake SHIB tokens to earn approximately 1% to 5% Annual Percentage Yield (APY) depending on factors such as the term duration.
ShibaSwap is the official platform where Shiba Inu tokens can be staked. Users can delegate their SHIB tokens using the platform (referred to as ‘Bury’) to earn staking rewards.
An alternative method is to use a crypto exchange such as Binance or Crypto.com. These exchanges are secure and safe platforms to stake SHIB tokens. An added benefit is that SHIB rewards obtained from staking can be used for other cryptocurrency trading purposes on the platforms.
Best Crypto Exchanges To Stake SHIB
Investors who want to stake SHIB using a cryptocurrency exchange have the top choices of Binance or Crypto.com. Whilst other major crypto exchanges offer investors the option of buying and selling SHIB, Binance and Crypto.com offer SHIB staking in a secure and safe environment.
The table below provides a high-level summary of the SHIB staking features that are currently offered by Binance and Crypto.com. It assumes that the amount of Crypto.com CRO staked is $400 or less.
|EXCHANGE||STAKING LIMITS||PAYOUT FREQUENCY||APY %|
|Binance||> 1 million SHIB||Daily||3.67% – 5.25%|
|Crypto.com||> 8 million SHIB||Weekly||1% – 2%|
Staking SHIB With Binance
In terms of traffic, liquidity, and trading volume, Binance is the world’s #1 ranked cryptocurrency exchange. Founded in 2017, the exchange now offers its innovative products and services in over 180 countries.
Binance boasts a number of services and features whilst still maintaining a user-friendly experience. Its strengths lie in its deep liquidity, low trading fees, one of the largest selections of digital currencies (300+), and innovative features.
Binance officially launched its Shiba Inu staking service in July 2021. At the time of writing, Binance customers who stake their SHIB can earn between 3.67% and 5.25% in SHIB token rewards. Based on our research, Binance’s return offering of 5.25% APY is the highest in the staking market.
Binance’s SHIB staking service comprises a selectable lock-in period where SHIB tokens are staked for 30, 60, or 90 days. The highest Return On Investment (ROI) requires SHIB to be staked for 90 days to receive a 5.25% Annual Percentage Yield (APY). However, a cap of 5,000 SHIB applies on a first-come-first-served basis.
A flexible savings account can be opened where staked SHIB tokens can be withdrawn at any time. However, the downside is that the APY is much lower at 0.5%.
|DURATION||MAXIMUM LOCKED STAKING LIMIT PER USER||STANDARD ANNUALIZED INTEREST RATE||MINIMUM LOCKED STAKING LIMIT|
|30 days||5,000 million SHIB||3.67%||1 million SHIB|
|60 days||1,000 million SHIB||4.12%||1 million SHIB|
|90 days||500 million SHIB||5.25%||1 million SHIB|
Users with a verified Binance account are eligible to stake SHIB tokens. There is a minimum requirement of 1 million tokens, which is the equivalent of USD $42 at current prices. The staking reward is paid out daily in SHIB tokens directly to the user’s wallet.
Staking SHIB With Crypto.com
Crypto.com is an established and highly reputable cryptocurrency exchange that stands out from its competitors with its ecosystem of innovative products and services that makes it a one-stop shop for everyday crypto users. The Crypto.com App has reached over 100 million users around the world and provides features such as a debit/credit card, an advanced trading interface, an NFT marketplace, and the ability for users to earn interest on their crypto holdings.
Like Binance, Crypto.com offers SHIB token staking in fixed terms of 30 and 90 days. An interim period of 60 days is not available. Users can also opt for a flexible term period however the returns are not as high compared to fixed terms.
The APY % depends on the duration of the term and the amount of CRO staked which is the native Crypto.com coin. The highest APY that can be achieved is 5% if the staking period is 90 days and more than $40,000 of CRO is also staked.
Crypto.com staking returns are calculated daily but paid out into the user’s wallet on a weekly basis. Once the fixed term is completed, then the deposited SHIB tokens will be returned.
|DURATION||CRO STAKED||APY||MINIMUM STAKING AMOUNT|
|30 days||$400 or less||1%||8 million|
|30 days||$4,000||2%||8 million|
|30 days||$40,000 or more||4%||8 million|
|90 days||$400 or less||2%||8 million|
|90 days||$4,000||3%||8 million|
|90 days||$40,000 or more||5%||8 million|
|Flexible||$400 or less||0.5%||8 million|
|Flexible||$40,000 or more||1%||8 million|
Assuming $400 or less of CRO is staked, then returns will vary between 1% and 2% for 30 days and 90-day terms, respectively. In comparison to Binance, these returns are much lower and make Binance the higher-yielding SHIB staking option. Furthermore, the minimum amount of SHIB that can be staked is 8 million, compared to the 1 million on Binance.
The key disadvantage to staking SHIB with Crypto.com is that CRO needs to be staked as well to achieve better APY returns. For example, if at least $,4000 of CRO is staked, then the APY % of SHIB improves by an additional 1% compared to if $400 or less of CRO was staked.
How Do You Stake Shiba Inu?
The easiest way to stake Shiba Inu tokens is to use a cryptocurrency exchange that supports SHIB staking. At the time of writing, Binance and Crypto.com are two reputable cryptocurrency exchanges that offer staking rewards between 3% and 5% APY.
Staking Shiba Inu (SHIB) tokens) using a crypto platform can be completed in the following six steps:
- Create and verify an account with an exchange that supports staking such as Binance.
- Purchase or deposit SHIB tokens into the wallet.
- Navigate to ‘Binance Earn’ and select ‘Locked Staking’.
- Choose ‘Shiba Inu’ from the staking list.
- Select a fixed-term duration (i.e. 30, 60, or 90 days).
- Enter the amount of SHIB to stake and ‘Confirm’.
What Is The Best Place To Buy Shiba Inu?
Shiba Inu (SHIB) tokens can be purchased from several of the larger cryptocurrency platforms such as Binance, Crypto.com, Gemini, Coinbase, KuCoin, Huobi, and Kraken. Australian residents who want to purchase SHIB tokens from a local crypto exchange can do so using Swyftx, however, staking SHIB is not supported. For more information, you can read our How To Buy Shibu Inu in Australia guide.
Frequently Asked Questions
Can I Buy Shiba Inu In Australia?
At the time of writing, Australian investors can buy Shiba Inu (SHIB) tokens from Swyftx and CoinSpot. Both exchange platforms are secure, reliable, and trustworthy platforms to purchase SHIB tokens, however, staking is not yet supported.
The popularity and market price of Shiba Inu surged in late 2021 and investors have turned their attention to staking the meme token. Beginners would be more suited to buying and staking SHIB on a cryptocurrency exchange rather than using the official Shiba Inu wallet. At the time of writing, Binance and Crypto.com offer SHIB staking services with Binance providing higher returns.