Foreign media commentators noted that Shiba Inu experienced a rapid rise during the 2021 bull market, but has since lost momentum. CoinGecko data shows that SHIB has fallen more than 93% from its all-time high of $0.00008616. The article argues that this decline is not due to a single factor, but rather a result of the combined effects of market conditions, project implementation, and token supply.
Declining risk appetite
The article first points to changes in the overall market environment as the cause. In recent years, investors' interest in high-risk assets has significantly diminished, with funds increasingly flowing into relatively stable assets. Macroeconomic instability and geopolitical tensions have further suppressed the performance of speculative assets.
Against this backdrop, SHIB, as a highly volatile meme coin, has been more directly impacted. The article argues that the overall pressure on risk assets is one of the key reasons why it has struggled to replicate its 2021 rally in recent years.
Project expansion has not brought a significant boost.
The article also mentions that the Shiba Inu team has not been idle in recent years, with initiatives including Shibarium Layer 2 networks, the Metaverse project, and ShibOS. However, these attempts have not yet translated into a sufficiently strong market driving force.
Commentators believe that while these products and narratives are conceptually appealing, limited actual adoption and market feedback have failed to significantly improve SHIB's price performance or reignite previous enthusiasm.
High supply remains a suppressive factor.
Supply size is considered another long-term pressure. The article points out that the current total supply of SHIB is close to 589 trillion coins, and the huge circulating base weakens the upward elasticity of prices.
A key catalyst in the 2021 market was Vitalik Buterin's massive burn of his SHIB tokens. He burned 90% of the tokens he received, causing a sharp drop in supply and briefly driving the price up. The article argues that the market still anticipates a similar burn event, but the likelihood of another operation on that scale is very low.
The rebound still depends on macroeconomic changes.
The article does not offer a definitive prediction regarding future trends, but believes that if the overall economic environment improves, the SHIB still has room to rebound. In particular, market risk appetite may recover if inflationary pressures ease, interest rates are lowered, or geopolitical conflicts de-escalate.
The article mentions that if the US cuts interest rates or the conflict between the US and Iran eases, trading sentiment for high-risk assets may improve, and SHIB may also benefit. However, this assessment is still based on the premise of an improved macroeconomic environment.
