There is a lot of speculation about the possibility of Shiba Inu (SHIB) repeating his 2021 success in 2024. In 2021, a $3 investment in Shiba Inu turned into more than $1 million, potentially captivating crypto analysts and the community.
However, with a massive 90% decline from its peak in 2022 and a lackluster 2023, the future looks uncertain.
What are the hurdles in the rapid rise of the Shiba Inu?
The Motley Fool's experts urge caution, arguing that the astronomical rise experienced in 2021 may not be achieved again. Fundamental challenges such as the Shiba Inu's oversupply and speculative nature overshadow its large profit potential.
With over 589 trillion tokens in circulation and relatively slow progress in token burn, these hurdles seem insurmountable.
Additionally, efforts to make the Shiba Inu more practical have had mixed results. The introduction of Shibarium, a layer 2 solution aimed at reducing transaction costs and expanding utility, has not significantly increased merchant adoption. Despite these efforts, Shiba Inu acceptance among companies remains minimal, highlighting the token's limited use beyond speculative trading.
After strong price performance in 2024, the SHIB token has fallen by nearly 25% since March 5th. However, Alex Svanevik, CEO of on-chain analytics platform Nansen, remains bullish on Dogecoin (DOGE) and Shiba Inu.
“DOGE and SHIB intend to push Cardano out of the top 10” Svanevik Said.
Read more: How to buy a Shiba Inu (SHIB) and everything you need to know
In fact, there are signs of optimism in the Shiba Inu ecosystem. The increase in the number of wallets and transactions on the Shibarium platform suggests an increase in user engagement and adoption. This shows the potential expansion of the Shiba Inu ecosystem, providing new utilities and opportunities for the token.
Additionally, the community's efforts to evolve the Shiba Inu from its meme coin origins are noteworthy. Projects like Shibarium and the Shiba Eternity Play-to-Earn game represent major strides toward a more meaningful ecosystem.
But Motley Fool analysts say the dream of 2021 profits remains too ambitious.
“Inherently, it is impossible for Shiba Inu to repeat its 2021 gains. However, with the token already surging over 220% in 2024, investors are clearly willing to speculate on further upside.” said the Motley Fool.
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