Shiba Inu, the dog-themed meme cryptocurrency that famously delivered an 85,000,000% return between 2020 and October 2021, has seen its fortunes reverse dramatically. After a prolonged downward spiral in 2023, the token has failed to reclaim its peak and most holders are now underwater. Its future prospects now appear tied to the performance of its ecosystem rather than market hype.
Shiba Inu was once the most talked-about cryptocurrency, briefly outpacing Dogecoin in fame as investors flocked to it. Data shows SHIB delivered explosive returns of 85,000,000% during its surge between 2020 and October 2021.
The token’s momentum has since faded, entering a downward spiral in 2023 from which it has not recovered. It shifted from trading with four zeroes to five, extending losses for traders while leaving the majority of holders underwater.
The meme coin market has become overcrowded, with tokens like Bonk and Pepe taking a larger market share. Dogecoin and SHIB no longer command the attention they once did, while other meme currencies periodically churn out returns.
A potential comeback for Shiba Inu now depends on its ecosystem’s performance, which has been described as lackluster. Its Shibarium layer-2 network, touted to burn trillions of tokens, has burned only 1 billion so far.
Other projects launched by the team have not been widely accepted, and the massive 589 trillion token circulation is seen as stunting growth. “The hype has faded, the buzz is eroded, and the curtains have fallen on Shiba Inu,” one report stated.
In conclusion, a comeback in the style of 2021 appears impossible. The token is now characterized as a high-risk, high-reward asset where only those who can afford to lose money are advised to invest.
