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
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.
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