thecryptobasic.com
The Shiba Inu ecosystem team has suggested that SHIB may be gearing up for a rally capable of pushing its price to a new record high.
The team made the suggestion yesterday shortly after Bitcoin set a new all-time high record of $126,198. With Bitcoin achieving the milestone, the team teased that Shiba Inu could be the next in line to reach a new ATH.
Historically, strong Bitcoin rallies have often triggered broader market upswings, benefiting the broader altcoin market. Bitcoin investors often reallocate a portion of their profits into altcoins like SHIB after a rally, triggering price surges across those alternative assets.
Can Shiba Inu Reach New ATH?
Four years since Shiba Inu last reached its ATH of $0.00008845, the token has largely underperformed, dropping 85.65% from its peak. For SHIB to set a new record high at $0.00008850, it would need to surge by approximately 596.85% from its current price of $0.00001270.
Meanwhile, the current bull run stands out from previous cycles, which were primarily driven by retail investors. This time, institutional players are leading the charge through substantial investments in Bitcoin ETFs.
Issuers of Bitcoin ETFs, along with other institutional investors, have been accumulating large amounts of BTC, driving the coin to new heights.
Notably, despite Bitcoin reaching a new all-time high, Google search interest for the asset remains low, a sign that retail investors have yet to re-enter the market.
Given that institutions continue to focus on Bitcoin accumulation, the likelihood of them diverting significant capital toward alternative assets, such as SHIB, as observed during the previous bull cycle, appears limited for now.
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Bitcoin interest over time
Other Factors Hindering SHIB’s Growth Prospects
Moreover, several other factors continue to hinder Shiba Inu’s potential to reach a new all-time high.
Despite the Shiba Inu ecosystem team launching multiple projects, such as Shibarium and ShibaSwap, this momentum has waned.
Concerns have also grown over the team’s lack of transparency, as many members continue to operate under anonymous identities. This absence of accountability makes it challenging for institutional investors to commit funds to SHIB and its related ecosystem tokens.
Additionally, reports of internal conflict have surfaced. Developer Kaal Dhairya recently hinted at tensions within the team, alleging that some early contributors who profited from Shiba Inu’s growth have distanced themselves while claiming to be sourcing funds for the project.
Further complicating matters, specific team figures have publicly supported other projects, diverting attention away from SHIB. Unless these internal and structural issues are addressed, the likelihood of the token reaching a new all-time high remains slim.