Shiba Inu (SHIB) shocked the cryptocurrency world just months after its launch. The asset's price skyrocketed by millions of percentage points, reaching an all-time high of $0.00008616 in October 2021. Early investors made millions of dollars in profit with very little investment. Thanks to SHIB's outstanding performance, people with regular jobs were able to retire and achieve their dreams. Shiba Inu quickly earned the title of 'millionaire maker.' However, this dog-themed cryptocurrency has gradually lost momentum over the past few years. Let's explore whether SHIB has lost its 'millionaire maker' status.
Can Shiba Inu still make you a millionaire?
One of the main reasons for SHIB's astonishing rise in 2021 was Vitalik Buterin's token burn. This burning event received a lot of attention, and almost all SHIB investors heard about it. Buterin burned about 410 trillion SHIB tokens after receiving half of the supply. However, there are still about 589 trillion SHIB tokens in circulation. The high supply is a major obstacle to the rise in SHIB prices. An increase in price means the project’s market cap would reach unrealistic numbers. Furthermore, it is unlikely that the project will see a burning event similar to that of 2021 again.
The use cases of Shiba Inu (SHIB) are also very limited. The project launched the Shibarium Layer 2 network in 2023, aimed at bringing more practical features to the SHIB ecosystem. However, there are currently very few applications and projects running on the Shibarium network.
Another significant blow to the SHIB price comes from the fading hype surrounding SHIB. Memecoins are often subject to speculative behavior. Hype is a key factor in determining the price trends of memecoins. The weakening of SHIB hype has also caused the project to lose significant momentum.
Although Shiba Inu (SHIB) still has the potential to regain momentum, it is unlikely to replicate or duplicate its performance in 2021. Given that SHIB rose to new highs, you need to invest a larger amount of capital to earn a million dollars in profit, which is different from 2021 when people made millions with just a few thousand dollars.
