Michelle Legge
By Michelle LeggeHead of Crypto Tax Education
Updated Apr 19, 2024
This article has been fact checked and reviewed as per our editorial policy.

Is Shiba Inu Dead?

Dying memecoin or viable investment? Shiba Inu continues to divide investors over long-term viability and utility. Find out whether Shiba Inu is dead in 2024.

Shiba Inu, a cryptocurrency born from internet memes, faces scrutiny over its future. While some argue it's losing ground due to competition and sluggish development, others see potential growth fueled by its enthusiastic community and distinct characteristics. Let's delve into where Shiba Inu stands in the crypto realm and tackle the question: Is Shiba Inu dead?

Shiba Inu History

Before we tackle Shiba Inu’s current viability, let's rewind to its inception.

Shiba Inu emerged from the ‘Woof paper’, crafted by anonymous figures dubbed Ryoshi. The token (SHIB) aimed to experiment with decentralized community building, utilizing the Ethereum blockchain.

Shiba Inu's initial success largely relied on a strong community of more than 500,000 active users, as well as innovative projects like the decentralized exchange ShibaSwap, Shiba Inu Incubator, and Shiboshis (NFTs).

Several factors fueled Shiba Inu’s meteoric rise, including its low entry barrier, viral marketing efforts, and the surging interest in meme-based cryptocurrencies. Additionally, robust community backing and a vibrant social media presence played pivotal roles in attracting new investors and driving adoption.

All this leads us to today, where SHIB is a top 20 cryptocurrency by market cap.

Is Shiba Inu a good investment in 2024?

Since the start of 2024 to the current date, the value of SHIB has increased by more than 300% and is in the top 15 cryptocurrencies by market capitalization - rising from around $0.00000956 to $0.00002103 at the time of writing. This is, however, still around 60% lower than SHIB’s all-time high in 2021 of $0.00008845.

Some of this recent bull run may be attributed to a recent whale movement in mid-February, where a whopping 3.2 trillion SHIB tokens were transferred within a 24-hour period, stirring discussions in the crypto community. 

Originating from a single wallet, these transfers, including deposits to platforms like Coinbase, hint at strategic financial maneuvers such as diversification or readiness for investments. As well as this, the burn rate for SHIB has surged by more than 64,000% in April, with 657 million SHIB tokens permanently removed from circulation, reducing overall supply and increasing demand.

All this to say, Shiba Inu is currently performing well for investors in 2024, but it’s still not reached a new ALH.

Read next: What's the best crypto to buy in 2024?

Why is Shiba Inu's price so volatile?

Recent market swings and corrections have inevitably affected SHIB’s price and value. Similar to many cryptocurrencies, SHIB has witnessed periods of volatility, with its price fluctuating in response to broader market trends and investor sentiment. While market downturns can trigger temporary price dips, SHIB has showcased resilience, bouncing back from such fluctuations.

Does Shiba Inu’s supply matter?

Yes. Supply matters in tokenomics. There is a fixed supply of one quadrillion SHIB tokens and a circulating supply of 589.29T SHIB. While the fixed supply is insanely high, if investors continue to burn SHIB tokens, this may increase the value in the long term.

Read next: What determines the price of crypto?

Will Shiba Inu go up or down in price?

Nobody can 100% predict whether Shiba Inu will go up or down in price, but there are potential arguments for both a price rise and a decline. 

Why will Shiba Inu go up in price?

  1. Passionate community: Shiba Inu boasts a dedicated and passionate community of supporters, affectionately known as the “Shib Army,” who actively promote and advocate for the project. This grassroots movement has fuelled SHIB’s widespread adoption and market visibility.

  2. Deflationary token model: Shiba Inu’s tokenomics, including its deflationary token model and burn mechanism, have been touted as strengths. The project’s token burns gradually reduce the overall token supply, potentially increasing scarcity and driving value appreciation.

  3. Competitive position: Despite competition, Shiba Inu maintains a competitive stance in the meme coin arena, benefiting from its distinctive branding, celebrity endorsements, and meme culture appeal. These factors have helped SHIB carve out a niche and attract a loyal following.

  4. Upcoming developments: Shiba Inu (SHIB) is poised for significant upgrades across its ecosystem, positioning itself as a frontrunner in the cryptocurrency realm. Lead developer Shytoshi Kusama has outlined strategic advancements, including establishing the L2 blockchain as the meme capital of the world and collaborating with D3 Global for the Shib Name Service (SNS). Upgrades for Shiba Eternity and ShibaSwap are in the pipeline, alongside the launch of an experimental initiative called The SHEboshis.

  5. Partnerships: Collaborations with established brands, decentralized finance (DeFi) projects, and industry leaders could unlock new growth avenues and foster adoption. By leveraging synergies and tapping into existing networks, Shiba Inu may cement its position as a formidable player in the crypto market.

Why will Shiba Inu go down in price?

  1. Coin supply concerns: Critics argue that Shiba Inu’s vast token supply, including trillions of tokens in circulation, might dilute its value over time, posing challenges in maintaining price stability and investor confidence.

  2. Competition: With the proliferation of meme coins and decentralized finance (DeFi) projects, Shiba Inu faces stiff competition for market share and investor attention. This crowded space may hinder SHIB’s ability to stand out and attract new users.

  3. Development progress: Critics point to perceived shortcomings in Shiba Inu’s development progress, expressing concerns about project updates, innovation, and the ability to deliver on its ambitious roadmap. Questions about its long-term sustainability and relevance have surfaced.

  4. Regulatory uncertainty: Like many cryptocurrencies, Shiba Inu grapples with regulatory ambiguity as governments worldwide strive to establish clear frameworks for digital assets. Regulatory crackdowns or adverse rulings could disrupt SHIB’s operations and dampen investor sentiment, posing a significant hurdle to its growth trajectory.

  5. Market volatility: Cryptocurrency markets are renowned for their volatility, with prices susceptible to swift fluctuations driven by investor sentiment, market trends, and external factors. Shiba Inu must navigate this volatility and maintain stability amidst price swings to instill trust and confidence among investors.

Despite potential hurdles ahead, Shiba Inu’s long-term outlook remains promising. With its devoted community, innovative initiatives, and expanding ecosystem, SHIB is well-equipped to surmount challenges and thrive. By remaining adaptable and responsive to market dynamics, Shiba Inu can continue carving out its niche and retaining relevance as a leading meme coin and decentralized ecosystem. So, is Shiba Inu Dead? The resounding answer is, “No.”

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