Shiba Inu Was The Best-Performer In 2021: What Has Happened?

Shiba Inu (SHIB) was probably the best-performing financial asset in 2021. Since its launch in August 2020, till it hit an all-time high of $0.00008616 in October 2021, SHIB’s price rallied by many million percent. Shiba Inu (SHIB) left many top assets in the dust, including Bitcoin (BTC), Ethereum (ETH), gold, US tech stocks, etc. Since its 2021 peak, SHIB’s price has fallen by more than 85%. Let’s discuss why Shiba Inu (SHIB) has struggled over the last few years.

What Has Happened To Shiba Inu Since 2021?

Source: Watcher.GuruSource: Watcher.GuruOne of the most significant catalysts for Shiba Inu’s (SHIB) incredible 2021 rally, as many already know, was Vitalik Buterin’s massive token burn. The Ethereum co-founder received half of SHIB’s entire supply upon launch. Buterin went on to burn 410 trillion SHIB tokens and donated the rest to charity. The sudden supply dip led to a massive price spike. A similar burn is almost impossible today. There are still about 589 trillion Shiba Inu (SHIB) tokens in circulation. The high supply is a big barrier to the asset’s price.

Another factor that helped Shiba Inu’s (SHIB) 2021 rally was the hype around the project. Burns alone would not have pushed the asset’s price if it were not met with substantial demand. There was a lot of noise around the project, and new investors were lining up to buy the new asset. Many wanted to make big returns with minimal investments, and SHIB was the go-to project at the time. Investor interest in SHIB has substantially declined over the last few years.

Also Read: Shiba Inu Marketing Strategy Backfires, Community Loses Faith in SHIB

Also Read: Shiba Inu Marketing Strategy Backfires, Community Loses Faith in SHIBShiba Inu (SHIB) also does not have a lot of real-world use cases. The project launched the Shibarium network in 2023 to bring more utility to the coin. However, very few applications are built on Shibarium.

In summary, the dip in burns, along with declining interest, may have led to Shiba Inu’s (SHIB) current predicament. The asset could pick up the pace if it can generate enough interest and have more projects on the Shibarium network.