Shiba Inu (SHIB) has had a rough few years. The asset climbed to an all-time high of $0.00008616 on Oct. 28 of 2021. SHIB’s price has fallen by more than 86% since its 2021 peak. The project’s market cap has also taken a hit over the last few months. SHIB was once among the top 20 crypto projects by market cap. It is currently the 23rd largest crypto project.
Shiba Inu’s Lackluster Performance
SHIB climbed to $0.000036 in March of 2024. It then faced a big price correction before climbing to $0.000032 in December of 2024. Since December, SHIB has struggled to reclaim the $0.00003 price level.
One of the most significant reasons for SHIB’s lackluster performance could be the overarching bearish market environment. Bitcoin (BTC) has hit multiple all-time highs. A few assets, such as Solana (SOL), BNB, and Pepe (PEPE), have followed BTC’s trajectory to new peaks. SHIB, unfortunately, is not one of those assets.
Another reason Shiba Inu (SHIB) has performed poorly is its lack of utility. The SHIB team launched the Shibarium layer-2 network to bring more use cases to the SHIB ecosystem. Despite their efforts, not a lot of projects have been built on Shibarium. The demand for SHIB continues to slump.
Will The Asset Take Off?
According to early Bitcoin (BTC) investor Davinci Jeremie, SHIB’s price could skyrocket if more applications are built on the Shibarium network. More applications will drive demand for SHIB, leading to a price surge.
Also Read: Shiba Inu Burn Rate Falls to 0% as Whale Holdings Jump 600%
Another way for Shiba Inu (SHIB) to rally is for the project to undertake another big 2021-like burn. SHIB’s massive 589 trillion supply presents a substantial barrier to its price. The team is reportedly working on a new burn mechanism. However, we do not have much information about how the new burn mechanism works.