Shiba Inu (SHIB) is one of the most significant cryptocurrency endeavors in the past couple of years. SHIB was also saw one of the biggest price movements during the bull market of 2021. Smalls investments went big, and early investors reaped big rewards. This project rapidly gained popularity, particularly among recent crypto investors seeking a quick fortune. The memecoin went on a historic run in 2021, but has failed to generate momentum in the past few years. CoinGecko data shows that the price of SHIB has declined by over 93% from its all-time high of $0.00008616. Let’s discuss what went wrong with Shiba Inu in the last few years.
What Went Wrong With Shiba Inu, And Will It Recover?
Shiba Inu (SHIB) is a memecoin with heavy risks. Their prices often face violent swings. Investors seem have increasingly moved away from risky assets in the last few years. Macroeconomic instability and geopolitical tensions have led to an exodus away from high-risk assets, and into more safer bets. The transition from risky assets may have hurt Shiba Inu (SHIB) over the last few years.
Another factor that may have impacted Shiba Inu’s (SHIB) performance is the lack of mainstream adoption. The SHIB team has made substantial innovation to bring more use cases to the project. However, these developments seem to have fallen short. The Shibarium layer-2 network, the SHIB metaverse initiative, ShibOS, etc., seem good on paper, but have not made much movement practically.
Also Read: The Rise Of Shiba Inu: What Made It So Popular?
Thirdly, Shiba Inu (SHIB) has a very high supply of nearly 589 trillion coins. One major factor behind the 2021 rally was Vitalik Buterin’s token burn. Buterin received half of SHIB’s supply and burned 90% of the coins he received. The move led to sudden supply dip, and a price spike. Many hope that the project undertakes another big burn. However, another Buterin-level burn is very unlikely.
There is a chance that Shiba Inu (SHIB) will rebound once the larger economy improves. Risk appetite is still low among investors and inflation remains a challenge. An interest rate cut and a solution to the US-Iran war could change the tide.
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