In a surprising shift within the cryptocurrency landscape, Shiba Inu (SHIB) has emerged stronger while major players like Bitcoin (BTC) and Dogecoin (DOGE) face setbacks on one of the largest U.S. exchanges. Coinbase, a leading crypto platform, has announced it will remove support for Bitcoin and other tokens using the UTXO (Unspent Transaction Output) model from its payment service. This strategic pivot not only reshapes how digital assets are processed but also gives an unexpected advantage to ERC-20-based meme coins—especially SHIB.
Coinbase Shifts Focus to Smart Contract-Based Assets
Lauren Dowling, Product Lead at Coinbase Commerce, revealed in a recent social media update that the platform is moving away from native UTXO-based blockchain support. This change affects prominent cryptocurrencies such as Bitcoin, Dogecoin, Litecoin (LTC), and Bitcoin Cash (BCH)—all of which rely on the UTXO framework for transaction validation.
Instead, Coinbase is embracing what it calls an “open onchain payments protocol,” built around smart contracts and Ethereum Virtual Machine (EVM)-compatible tools. The new system will prioritize ERC-20 tokens and expand compatibility across multiple EVM-based chains, including Ethereum, Base, and Polygon.
This evolution reflects a broader industry trend: the transition from simple payment-focused blockchains to programmable, application-rich ecosystems. By focusing on EVM-compatible networks, Coinbase aims to streamline developer integration, improve transaction efficiency, and enable advanced features like automated settlements and embedded DeFi functionality.
Why Shiba Inu Benefits from This Change
Unlike Dogecoin and Bitcoin, Shiba Inu exists as an ERC-20 token on the Ethereum network. This technical foundation makes SHIB fully compatible with Coinbase’s updated infrastructure. As a result, SHIB remains supported on Coinbase Commerce’s payment services—giving it a competitive edge over other meme coins still reliant on legacy architectures.
This preferential treatment isn't due to branding or community size alone—it's rooted in technological alignment. While DOGE continues to operate on its own UTXO-based chain with limited smart contract capabilities, SHIB leverages Ethereum’s robust ecosystem, enabling greater interoperability, scalability, and innovation potential.
Moreover, the continued support from major platforms like Coinbase enhances SHIB’s credibility as more than just a meme coin. It positions Shiba Inu as a viable digital asset within modern payment systems and decentralized applications.
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The Rise of Shibarium: Shiba Inu’s Layer-2 Powerhouse
Beyond its ERC-20 status, the real engine behind Shiba Inu’s momentum is Shibarium, its proprietary layer-2 scaling solution. Designed to reduce transaction fees and increase throughput, Shibarium has quickly become a hub for innovation within the SHIB ecosystem.
Recent developments highlight its growing influence:
- GroveX, a notable cryptocurrency exchange, has integrated Shibarium into its platform, increasing accessibility and visibility.
- A surge of new projects is being built on Shibarium, particularly in DeFi and NFTs, signaling strong developer interest.
- The network’s low-cost, high-speed environment makes it attractive for startups and creators looking to launch scalable dApps.
Lucie, Marketing Lead for Shiba Inu, emphasized the significance of this growth: “Something extraordinary is happening.” She pointed to the increasing number of high-quality projects choosing Shibarium as their foundation, suggesting organic adoption rather than hype-driven activity.
One particularly promising collaboration is between Shibarium and K9 Finance, a Liquid Staking Derivatives (LSD) platform built directly on the layer-2 network. This partnership could unlock staking rewards, liquidity options, and yield opportunities for SHIB holders—adding tangible utility beyond speculation.
Market Performance and Investor Sentiment
At the time of writing, SHIB is trading at approximately $0.000009836, reflecting a modest gain of nearly 1% over the past 24 hours. While price movements remain relatively stable, the underlying fundamentals suggest growing confidence in the project’s long-term vision.
The delisting news from Coinbase did not negatively impact SHIB—in fact, it may have contributed to its resilience. With competitors facing reduced payment functionality, investors are reassessing where true innovation lies within the meme coin space.
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Frequently Asked Questions (FAQs)
Q: Why is Coinbase delisting Bitcoin and Dogecoin from its payment service?
A: Coinbase is phasing out support for tokens using the UTXO model to adopt a new “open onchain payments protocol” focused on smart contracts and EVM-compatible chains like Ethereum, Base, and Polygon.
Q: Is Shiba Inu affected by the Coinbase delisting?
A: No—Shiba Inu (SHIB) is not affected because it is an ERC-20 token, fully compatible with Coinbase’s updated payment infrastructure.
Q: What is the UTXO model, and why is it being phased out?
A: The UTXO (Unspent Transaction Output) model is a transaction verification method used by Bitcoin and similar blockchains. It's being replaced due to limitations in smart contract functionality and scalability compared to account-based EVM systems.
Q: Which blockchains will Coinbase support under its new payment system?
A: The new system will primarily support assets on Ethereum, Base, and Polygon—all EVM-compatible networks that facilitate smart contracts and decentralized applications.
Q: What is Shibarium, and how does it benefit SHIB?
A: Shibarium is Shiba Inu’s layer-2 scaling solution designed to reduce fees and increase speed. It supports DeFi, NFTs, and staking platforms like K9 Finance, enhancing SHIB’s utility and ecosystem growth.
Q: How can investors benefit from Shiba Inu’s current momentum?
A: Beyond price appreciation, investors can explore yield opportunities via Shibarium-based protocols, participate in NFT projects, or use SHIB in supported payment systems that accept ERC-20 tokens.
With strong technical foundations, strategic partnerships, and increasing platform support, Shiba Inu is evolving from internet culture into a meaningful player in the decentralized future.