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Shiba Inu (SHIB) Collapses 60% in a Year: 3 AIs Reveal What Might Trigger a Big Revival
TL;DR
Shiba Inu (SHIB) has seen a 60% price drop over the past year, following a peak market cap of over $40 billion in late 2021. Experts suggest that a revival may hinge on the adoption of its Shibarium layer-2 solution.
Key points
- Shiba Inu's price is down 60% in the past year
- Market cap exceeded $40 billion in late 2021
- Shibarium was launched to improve the ecosystem
- Shibarium adoption is seen as a potential revival factor
- The protocol faced exploitation issues last year
Shibarium
BTCBitcoinETHEthereumSOLSolanaXRPXRPMATICPolygonETCEthereum ClassicPEPEPepeSHIBShiba InuDAIDaiCOINCoinbase
It was late 2021 when the self-proclaimed Dogecoin killer shocked the crypto world with a massive price surge, pushing its market capitalization above $40 billion.
However, that peak was short-lived, and Shiba Inu headed south before staging an evident resurgence in 2024 (though it did not reach its historical peak). The past year has been nothing but disappointing for the token, whose price is down by 60%. And while disbelief may be currently running high within the community, we asked three of the most popular AI-powered chatbots what may could potentially spark a major revival.
The Catalysts
According to ChatGPT, SHIB is no longer viewed purely as a meme coin, meaning its future increasingly depends on whether its ecosystem is actually used. One main factor that could fuel a revival is massive Shibarium adoption.
The layer-2 scaling solution was specifically designed to advance the Shiba Inu ecosystem by lowering transaction fees, improving speed, and enhancing scalability. It was officially launched in the summer of 2023, and in its early days, it sparked huge interest and facilitated multi-million-dollar transactions on a daily basis. Last year, though, the protocol was exploited, after which the numbers were drastically reduced.
Next on ChatGPT’s list is Shiba Inu’s mechanism, adding that the meme coin’s “gigantic supply” has always been its biggest problem.
“If daily activity becomes enormous – gaming, payments, DeFi, AI apps, etc. – burn rates could accelerate dramatically. A true revival probably requires the market believing the supply can shrink meaningfully over time,” it added.
Last but not least, the chatbot assumed that the introduction of a spot SHIB ETF could positively impact the token’s price because it would attract more investors to the ecosystem. Recall that the US regulators have already approved the launch of such products with ETH, XRP, SOL, DOGE, and other altcoins as underlying assets.
Perplexity agreed with ChatGPT’s remarks regarding the burn rate and Shibarium’s role, adding that a renewed meme coin season may also largely benefit SHIB:
“When Dogecoin, Pepe, and similar coins start breaking out together, SHIB often benefits from sector-wide speculative flows rather than needing its own news first.”
The ‘Bitcoin Effect’ and More
Q&A
What caused the 60% drop in Shiba Inu's price over the past year?
The price drop is attributed to a lack of sustained interest and utility within its ecosystem after its peak in late 2021.
How could Shibarium adoption impact Shiba Inu's future?
Increased adoption of Shibarium could enhance transaction efficiency and scalability, potentially leading to a price revival for SHIB.
What was Shiba Inu's market capitalization at its peak?
Shiba Inu's market capitalization peaked at over $40 billion in late 2021.
