Why Shiba Inu Continues to Disappoint Despite Its Viral Past

When you trace the journey of Shiba Inu (SHIB), the story reads more like cryptocurrency’s greatest meme than its greatest investment. While early buyers in 2021 witnessed astronomical gains — with a modest $3 investment potentially turning into $7 figures — the token has since become a cautionary tale about hype-driven assets in the crypto market.

Currently trading at a fraction of its former glory with a market cap around $4 billion, SHIB sits as the second-largest meme coin after Dogecoin (DOGE), which boasts a market cap of $20.71B. Yet this ranking masks a deeper problem: fundamental weakness.

The Foundation Was Built on Spectacle, Not Substance

From inception, Shiba Inu was designed as a direct challenge to Dogecoin — the creators even marketed it as the “Dogecoin killer.” But spectacle, not innovation, defined the project’s DNA.

The smoking gun: its anonymous founder Ryoshi sent 50% of the entire SHIB token supply to Ethereum co-founder Vitalik Buterin. While Buterin burned 90% and donated the remainder to charity, this move screamed of a project without conviction. Ryoshi claimed it demonstrated “vulnerability,” but seasoned investors recognized it for what it likely was — a publicity stunt designed to generate buzz.

This pattern persists: a project that sends half its assets to an external figure isn’t betting on its own merit. It’s gambling on celebrity association.

The Meme Coin Trap: Timing Everything, Building Nothing

Profiting from Shiba Inu requires a completely different investment mindset than traditional value investing. Meme coins demand constant surveillance — you must catch peaks that often materialize overnight and vanish just as quickly.

Most investors lack the discipline or bandwidth for this approach. You’re forced to make time-sensitive decisions: sell when you’re ahead, or hold hoping for greater gains? The psychological toll and opportunity cost often outweigh the potential rewards. By contrast, assets like Bitcoin (BTC) — with its fixed 21 million coin supply and established digital store-of-value utility — reward patience and long-term conviction.

The Collapse Tells the Real Story

Since hitting $0.00008616 in October 2021, Shiba Inu has shed over 90% of its value. While sporadic rallies have occurred, anyone who accumulated near the 2021 peak remains deeply underwater. This pattern is predictable with meme coins: the hype cycle exhausts itself, and what follows is stagnation.

Bitcoin, for comparison, demonstrates resilience. Despite repeated bear markets, it has consistently recovered and reached new price highs. Currently trading near $88.9K, BTC validates the superiority of assets built on actual use cases.

Shiba Inu offers no such foundation. It has no unique technology, no differentiated value proposition, and no reason to believe it will appreciate from current levels. The viral moment has passed, leaving only a hollow token clinging to historical notoriety.

For investors seeking genuine exposure to cryptocurrency, Ethereum (ETH) at $3.01K or Bitcoin represent assets with defensible technology and adoption curves. Shiba Inu, by contrast, remains a relic of 2021’s speculative excess — interesting as a case study, but irrelevant as an investment vehicle.