Shiba Inu (SHIB) has gone through a tough few years. The asset surged to an all-time high of $0.00008616 on October 28, 2021. Since the peak in 2021, the price of SHIB has dropped more than 86%. In recent months, the project's market cap has also been impacted. SHIB was once among the top 20 cryptocurrency projects by market cap. It currently ranks 23rd. Shiba Inu has been underwhelming.
SHIB rose to $0.000036 in March 2024. It then experienced a significant pullback before rising to $0.000032 in December 2024. Since December, SHIB has been struggling to recover the $0.00003 price level.
One of the most important reasons for SHIB's poor performance may be the overall bearish market environment. Bitcoin (BTC) has reached multiple all-time highs. A few assets like Solana (SOL), BNB, and Pepe (PEPE) have also followed BTC's lead, reaching new highs. Unfortunately, SHIB was not among them.
Another reason for Shiba Inu (SHIB) performing poorly is its lack of utility. The SHIB team launched the Shibarium Layer 2 network, aiming to bring more use cases to the SHIB ecosystem. Despite their efforts, there are not many projects based on Shibarium. The demand for SHIB remains sluggish.
Will the asset take off?
According to early Bitcoin (BTC) investor Davinci Jeremie, if more applications are built on the Shibarium network, the price of SHIB could skyrocket. More applications would drive demand for SHIB, leading to a price surge.
Another way for Shiba Inu (SHIB) to rebound is for the project to conduct another large-scale burn similar to 2021. The massive supply of 589 trillion SHIB poses a significant barrier to its price. Reports indicate that the team is exploring a new burning mechanism. However, we currently have limited information on how the new burning mechanism will work.
