The cryptocurrency market is notorious for its ups and downs, and right now, it’s feeling a bit wobbly. After peaking at an impressive $3.9 trillion, the market has recently dipped by about 12%. Investors still have fresh memories of significant declines, like the staggering 71% drop that hit the market about a year after the 2021 peak.
Among the digital assets, Shiba Inu (SHIB) has caught many eyes — though for all the wrong reasons lately. After soaring with a year-to-date gain of 251%, the token has unfortunately slipped 41% from its 52-week high, leaving many to wonder if it’s time to make a move.
Back in 2021, Shiba Inu was the talk of the town as a small investment could have transformed into a whopping $1 million. However, that excitement diminished quickly, as the token later saw a value drop exceeding 90%. The current plummet raises the question: does this spell doom, or is it an opportunity to snag some before the next big rise?
Despite the recent dip, Shiba Inu has not forgotten its roots. It hit an all-time high of $0.000086 in 2021 and wrapped up that year with a jaw-dropping 45,278,000% gain, solidifying its place in financial history.
Yet, here we are again. Even with the recent gains in 2024 signaling a possible comeback, Shiba Inu hasn’t regained even half of its peak value from 2021. At that recent 52-week high of $0.000036, the token’s comeback was largely fueled by speculation rather than any solid utility. Currently, it’s accepted as a form of payment by only about 1,025 businesses, primarily quirky online shops and crypto service providers.
According to developers, new initiatives like Shibarium aim to enhance Shiba Inu’s utility and make transactions cheaper. However, the token continues to dance to the tune of speculators, investing in hope of selling at an even higher price.
With the current momentum in the broader cryptocurrency sector, Shiba Inu faces its share of battles. The latest rally was ignited by former President Trump’s approach to crypto, which many believe will lighten regulatory burdens, giving the market a breath of fresh air. While this could benefit established cryptocurrencies like Bitcoin (BTC) and Ripple’s XRP, which boast clear use cases and regulatory approval, Shiba Inu remains on shaky ground.
This is partly due to its staggering supply; over 589.2 trillion tokens exist. Each trades for a mere $0.000036, making its market cap hover around $12.5 billion. For Shiba Inu to reach the “normal” price of $1 per token, its market cap would need to swell to an astronomical $589.2 trillion — more than the total wealth of everyone on Earth.
While the Shiba Inu community is buzzing with efforts to reduce supply through token “burning,” it could be an eternity before enough tokens are eliminated to rationalize any significant price increases. Lack of real use cases presents a larger barrier to sustained growth. Unlike Bitcoin or XRP, which serve important functions and solve real problems, Shiba Inu does not have that level of foundation.
It’s possible that Shiba Inu might recover and inch back toward its all-time high of 2021. However, investing based on speculation is a precarious venture, as it can collapse without notice. The allure of gains might be tempting, but prudence suggests that buying Shiba Inu right now may not be the wisest choice.
