Shiba Inu (SHIB) had a legendary run during the 2021 bull market. Within months of its launch in August 2020, SHIB’s price rallied by many million percent, hitting an all-time high of $0.00008616 in October 2021. SHIB’s incredible performance in 2021 solidified its popularity as a “millionaire-maker.” However, the popular memecoin’s trajectory over the last few years has been lackluster. SHIB’s price has fallen by more than 90% from its 2021 peak, and many investors are worried they will have to sell their coins at a loss. Let’s discuss why Shiba Inu (SHIB) has struggled to gain reactions since the 2021 bull run.
Why Has Shiba Inu Struggled Since 2021?
One big catalyst for Shiba Inu’s (SHIB) incredible rally in 2021 was Vitalik Buterin’s massive token burn. The Ethereum co-founder received half of SHIB’s entire supply upon its launch in 2020. Buterin decided to burn 90% of the coins he received and donated the rest to charity. At the time, there was substantial demand for SHIB in the market. The high demand and sudden dip in supply led to a massive price rally for the asset.
Many investors believe Shiba Inu (SHIB) can recreate its 2021 burn and prices would. However, Shiba Inu (SHIB) lead developer Shytoshi Kusama has said that burns alone will not help SHIB’s price. The asset has to gain substantial adoption for prices to rally.
One major reason for Shiba Inu’s (SHIB) lackluster performance is the diminished hype around the project. Memecoins often depend on online buzz for price gains. The hype around SHIB has substantially declined over the last few years. Investors have also lost confidence in the project.
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Shiba Inu (SHIB) could regain its losses if the project can reignite investor confidence. The asset could also do well if the team can bring more utility to the SHIB ecosystem. The Shibarium network, although growing, needs more development and applications built on it. Only a surge in adoption can bring back the SHIB train.