thecryptobasic.com
Shiba Inu, the second-largest meme coin by market cap, has retraced significantly from its peak price of $0.00008854, casting doubts among holders.
Nearly five years ago, when Shiba Inu ($SHIB) was going “to the moon,” market participants beamed with enthusiasm. That cannot be said of the meme coin at this time, as it has retraced considerably from its prior highs.
Key Points
- In October 2021, Shiba Inu surged to an all-time high of $0.00008854.
- At the time of writing, its price has crashed by 93% from the 2021 peak, now trading at $0.00000613.
- Currently, most Shiba Inu holders, as with most other cryptocurrencies, are underwater.
- Although $SHIB’s valuation has declined significantly, there are positives indicating a recovery.
Shiba Inu Has Almost Lost All Its Value
In October 2021, Shiba Inu surged to an all-time high of $0.00008854. During this run, its market cap surpassed $54 billion, placing it among the top cryptocurrencies by market cap.
Notably, the explosive move in October 2021 briefly saw it surpass Dogecoin to become the most valuable meme coin. This made its popularity grow even further in the crypto space and captured the bullish mood at the time.
Nearly five years down the line, Shiba Inu looks like a different beast. At the time of writing, its price has crashed by 93% from its 2021 peak, and it is currently trading at $0.00000613. Although it is still up over 600,000% from the price in its early days, per CoinGecko, those who bought around nearly six years ago would have almost nothing at the current price.
Rise to Stardom and Current Decay
The doggy-themed, lighthearted meme coin was created by Ryoshi, a pseudonymous developer inspired by Kabosu. The community-centric token launched with a total supply of 999.9 trillion $SHIB, and while dogs were just lovable, this large supply cap saw Shiba Inu struggle.
However, May 2021 was the game-changer. Shiba Inu creators sent 500 trillion $SHIB (50% of supply) to Ethereum co-founder Vitalik Buterin. Instead of keeping this large stash, Buterin burned 410 trillion tokens and donated the rest to charity. This effectively wiped out permanently 41% of $SHIB’s supply, sending its price surging.
Notably, meme coins have a reputation for being highly speculative assets with short lifespans. Most of them die off over time due to their reliance solely on hype and community support.
Despite its longevity, $SHIB’s valuation has significantly decreased. When the broader crypto sector entered the bear market in 2022, the token fell harder. By June 2023, it had added one more zero, trading at $0.00000543.
Meanwhile, the current cycle has not been favorable to altcoins, most especially meme tokens. While Bitcoin and top coins like Ether, XRP, and BNB made new all-time highs, $SHIB topped at $0.00004567, well below its 2021 peak. As the broader market has turned bearish again, it has dropped back to previous cycle lows.
Can Shiba Inu Ever Recover?
Currently, most Shiba Inu holders, as with most other cryptocurrencies, are underwater. But considering it is a meme coin, its path to recovery appears longer, drawing further skepticism from holders.
But there are positives. A recent report points to a steady increase in the number of holders, with between 5,000 and 12,000 wallets added each month. Such a user influx usually precedes an increase in network activity, which, in the long run, considerably impacts prices.
Data confirm consistent growth in this metric, with $SHIB holders having nearly doubled from 1.5 million a year ago to 2.93 million today. This shows persistent traction despite a 45.8% price decline during this period.
Analysts also remain hopeful that Shiba Inu will recover from this price slump. Market watcher MMBTrader projects that there will come a time when the token will start printing massive weekly pumps again, predicting a rally to $0.00007730.