Shiba Inu (SHIB) was among the best-performing cryptocurrencies of the 2021 bull run. SHIB’s meteoric rise solidified its name as a “millionaire-maker.” Since its 2021 peak, SHIB has lost considerable steam. The asset climbed to the $0.00003 mark in December 2024, but has since been on a gradual downtrend. Let’s discuss why Shiba Inu is struggling in 2025.
Why Is Shiba Inu Not Gaining Steam In 2025?
Shiba Inu (SHIB) and other memecoins are subject to heavy speculation. Online buzz and investor sentiment play major roles in dictating their price patterns. SHIB has lost the hype it had in 2021. The fading hype around the project is likely the primary reason for SHIB’s lackluster performance.
Shiba Inu (SHIB) also does not have a lot of utility. The project launched the layer-2 network, Shibarium, in 2023 to bring more use cases for the SHIB ecosystem. Despite a successful launch, not a lot of development is taking place on the Shibarium network. If more applications are built on Shibarium, the Shiba Inu (SHIB) will likely face a price surge.
The crypto market has seen volatile swings in 2025. The heavy volatility may have led to investors becoming cautious of memecoins. Bitcoin (BTC), Ethereum (ETH), BNB, and XRP have hit new all-time highs over the last few weeks. Shiba Inu (SHIB), on the other hand, continues to trade at 85% less than its all-time high of $0.00008616.
One of the primary catalysts for Shiba Inu’s (SHIB) incredible rally in 2021 was Vitalik Buterin’s massive token burn. Buterin received half of SHIB’s entire supply, but decided to burn 90% of the coins he received. Shiba Inu (SHIB) has seen very few burns in 2025. The lack of substantial burns may have also led to a dip in investor interest.
Also Read: Shiba Inu to Surge After Meme Coin Market Adds $14 Billion Since July
We are still a long way from the end of 2025. Shiba Inu (SHIB) could pick up the pace over the coming months. An interest rate cut could further propel the dog-themed cryptocurrency’s price.