Many of the catalysts expected to drive Shiba Inu's growth in 2023 have largely failed to materialize. Although the meme coin frenzy of 2021 has faded, some investors still cling to the hope that Shiba Inu can stage a comeback. However, the reality in 2023 tells a different story. While Shiba Inu has seen a gain of over 24% year-to-date, it significantly underperforms compared to other major cryptocurrencies like Bitcoin, which has surged more than 73% in the same period.
More concerning is the recent 30-day trend, which shows a 10% decline in Shiba Inu's value, eroding any prior momentum. Today’s investors are increasingly focused on tangible outcomes—something Shiba Inu has struggled to deliver.
Key Factors Influencing Shiba Inu’s Performance
The Shibarium Launch Delay
A major catalyst anticipated to boost Shiba Inu was the launch of Shibarium, a Layer-2 scaling solution designed to enhance transaction speed, reduce costs, and improve usability. The idea was that this upgrade would attract developers and spur ecosystem growth.
However, Shibarium faced significant delays and remains in beta testing. Questions have also arisen regarding its underlying code and actual functionality. Although transaction volume and wallet numbers have increased slightly, the promised surge in development—such as games, apps, and Web3 experiences—has not yet occurred. Despite community optimism about future corporate adoption, concrete progress remains limited.
The Challenge of Coin Burning
Another strategy intended to support Shiba Inu’s price was coin burning—a process of permanently removing tokens from circulation to reduce supply. With a total circulating supply of 589.5 trillion SHIB, reducing availability is theoretically bullish for price.
In practice, however, the burn rate has been insufficient to make a meaningful impact. For instance, March 2023 saw 7.68 billion tokens burned, but April’s total fell to 3.26 billion. At a rate of 4 billion tokens per month, it would take 20 years to remove just one trillion SHIB—a negligible portion of the total supply. Compared to Bitcoin’s hard cap of 21 million coins, Shiba Inu’s supply dynamics present a considerable challenge.
The Metaverse Vision
Shiba Inu initially generated excitement with plans for a metaverse project, positioning itself at the intersection of crypto and virtual experiences. Yet, what exists today falls short of the original vision. Currently, users can only purchase virtual land—there’s no immersive gameplay or engaging ecosystem. In many ways, the metaverse initiative has simply become another token burn mechanism rather than a value-added platform.
Should You Invest in Shiba Inu Now?
At this point, Shiba Inu may no longer offer compelling short-term momentum compared to other meme tokens. Newer entrants have captured market attention with significantly higher returns, underscoring SHIB’s fading appeal.
A classic market saying advises: “Sell in May and go away.” This may be sound advice for current Shiba Inu holders. Rather than waiting for a turnaround, consider reallocating resources into more promising crypto opportunities. 👉 Explore alternative crypto strategies
Frequently Asked Questions
What is Shibarium?
Shibarium is a Layer-2 blockchain solution designed to improve Shiba Inu's scalability and reduce transaction fees. It aims to support broader adoption and developer activity, though it is still in development.
How does coin burning work?
Coin burning involves sending tokens to an irrecoverable wallet address, effectively removing them from circulation. This reduces total supply and may increase scarcity, potentially supporting higher prices.
Why is Shiba Inu underperforming Bitcoin?
While Bitcoin is seen as a store of value with institutional adoption, Shiba Inu relies heavily on retail sentiment and speculative trends. Its utility and use cases remain limited compared to more established cryptocurrencies.
Is the Shiba Inu metaverse active?
Currently, the Shiba Inu metaverse offers limited functionality, focusing mainly on virtual land sales. Full gaming and social experiences are still in development.
Are there better alternatives to Shiba Inu?
Many investors are turning to cryptocurrencies with stronger fundamentals, real-world utility, or newer meme coins with higher viral momentum. Always conduct thorough research before investing.
Should I sell my Shiba Inu holdings?
If you’re seeking short-term gains or grew skeptical of SHIB’s catalysts, it may be wise to diversify. Long-term holders should monitor development progress and market sentiment closely. 👉 Learn how to evaluate crypto investments