See More

Can Shiba Inu Echo Its 2021’s Surge: Analysts Weigh In

2 mins
Updated by Ali M.
Join our Trading Community on Telegram

In Brief

  • Experts caution against expecting Shiba Inu's 2021 surge repeat due to fundamental issues like excessive supply.
  • Shibarium's launch has not significantly boosted Shiba Inu's utility or merchant adoption despite its aims.
  • Despite a 25% price drop in 2024, optimistic signs emerge in SHIB's ecosystem, with notable community-driven projects.
  • promo

Shiba Inu’s (SHIB) potential to replicate its 2021 success in 2024 sparks widespread speculation. In 2021, a $3 investment in Shiba Inu could have transformed into over $1 million, captivating the crypto analysts and community.

Yet, the future seems uncertain after a drastic 90% drop from its peak in 2022 and a lackluster 2023.

What Are Hurdles in Shiba Inu’s Exponential Surge?

Experts from the Motley Fool urge caution and argue that the astronomical rise experienced in 2021 may be unattainable again. Shiba Inu’s fundamental challenges, such as its excessive supply and speculative nature, cast a shadow over its potential for significant gains.

With over 589 trillion tokens circulating and relatively slow progress in token burning, these hurdles seem insurmountable.

Furthermore, Shiba Inu’s efforts to enhance its utility have seen mixed results. The introduction of Shibarium, a Layer 2 solution aimed to lower transaction costs and broaden utility, has not substantially increased merchant adoption. Despite these initiatives, Shiba Inu’s acceptance among businesses remains minimal, highlighting the token’s limited use beyond speculative trading.

After a strong price performance in 2024, the SHIB token is down by nearly 25% since March 5. However, Alex Svanevik, the CEO of the on-chain analytic platform Nansen, still has a bullish outlook for Dogecoin (DOGE) and Shiba Inu.

“DOGE and SHIB are gonna knock Cardano out of the top 10,” Svanevik said.

Read more: How To Buy Shiba Inu (SHIB) and Everything You Need To Know

Shiba Inu (SHIB) Price Performance
Shiba Inu (SHIB) Price Performance. Source: TradingView

Indeed, there are signs of optimism within the Shiba Inu ecosystem. The Shibarium platform’s growing wallet and transaction numbers suggest rising user engagement and adoption. This indicates a potential expansion in Shiba Inu’s ecosystem, offering new utilities and opportunities for the token.

Moreover, the community’s drive to evolve Shiba Inu from its meme coin origins is noteworthy. Projects like Shibarium and the Shiba Eternity Play-to-Earn game represent significant strides toward a more meaningful ecosystem.

Read more: 6 Best Platforms To Buy Shiba Inu (SHIB) in 2024

Yet, according to the Motley Fool analyst, the dream of mirroring the 2021 gains remains overly ambitious.

“In essence, it is impossible for Shiba Inu to repeat its 2021 gain. However, the token has surged by more than 220% in 2024 already, so investors are clearly willing to speculate on further upside,” The Motley Fool stated.

Top crypto projects in the US | May 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Frame-2264-1.png
Harsh Notariya
Harsh Notariya excels in delivering SEO-optimized crypto news under tight deadlines. Previously, as a Growth Marketer at Sporty and a Community Consultant at Totality Corp, he significantly boosted community engagement and followers. Harsh also crafted engaging content for top crypto influencer Shivam Chhuneja, blending meme references for an educational yet fun experience. His versatile skills make him a notable figure in crypto journalism.
READ FULL BIO
Sponsored
Sponsored