Fetch or forget: Is Shiba Inu dead?

Dogecoin (DOGE) has long been the top dog among crypto memecoins, but it hasn’t gone unchallenged. Of the contenders vying for Dogecoin’s crypto crown is Shiba Inu (SHIB), whose meteoric rise during the 2021 crypto bull run cemented its status as web3’s second most popular canine-themed token. 

Between January and October 2021, SHIB’s value surged from approximately $0.000000000077 to $0.00008845 – an increase of over 100,000,000%. This staggering growth captured widespread attention, earning Shiba Inu a spot in cryptocurrency history and a loyal following, the “SHIB army.”

Since its 2021 peak, however, SHIB’s value has declined significantly, sparking debates about the token’s long-term viability. Bearish sentiment from critics suggests that the memecoin market may have become too crowded for SHIB to repeat its past success. But is Shiba Inu really dead?

In this guide, we’ll explore Shiba Inu’s origins, milestones, challenges, and historical performance to help provide a clearer view of its future potential price trends.

What is Shiba Inu (SHIB)?

Named after the Japanese dog breed, Shiba Inu (SHIB) is a virtual token in the “memecoin” category on the Ethereum (ETH) blockchain. Memecoins are cryptocurrencies built around viral memes or pop culture references, using them to foster identity and community. SHIB draws inspiration from Dogecoin, another canine-themed memecoin, but while Dogecoin centers on the DOGE meme, SHIB features an animated version of the Shiba Inu as its mascot.

Launched in August 2020, SHIB was created by a pseudonymous cryptographer or group known as Ryoshi. Released as an ERC-20 token on the Ethereum blockchain, it initially had a supply of one quadrillion (1,000,000,000,000,000) tokens. Half of these were allocated to the decentralized exchange (DEX) Uniswap for trading, while the other half was gifted to Ethereum cofounder Vitalik Buterin. Buterin later burned 90% of his holdings and donated the rest to a COVID-19 relief charity.

The “Dogecoin Killer” 

SHIB’s popularity skyrocketed due to several factors. Its low price per coin and branding as a “Dogecoin Killer” attracted investors looking for a second chance at rapid gains, especially those who missed Dogecoin’s meteoric rise from less than a penny to $0.73. The token transfer to Vitalik Buterin’s wallet also generated significant publicity, further boosting SHIB’s visibility. By 2021, Shiba Inu had reached a market cap of $37 billion, with its price peaking at $0.00008 per coin.

Since then, the Shiba Inu ecosystem has steadily expanded, introducing new protocols and utilities to sustain its appeal. Key SHIB developments include Shibaswap, a decentralized exchange, and Shibarium, a layer2 scaling solution built on Ethereum. The team has also launched tokens like LEASH, BONE, and TREAT, supporting functions like governance and staking rewards that have strengthened the project’s ecosystem and community engagement.

Shiba Inu: Pros and cons

Shiba Inu has built a strong following and emerged as the top contender to Dogecoin, but it’s not without its challenges. Evaluating its strengths and weaknesses is essential for traders looking to set realistic expectations when using a Shiba Inu profit calculator.

Pros of Shiba Inu

• Strong online community: The “#ShibArmy” is a loyal and active online following with dedicated pages on platforms like Reddit and X. This robust community offers numerous opportunities for web3 enthusiasts to connect, share ideas, and engage with SHIB.
• Ecosystem development: Unlike Dogecoin, Shiba Inu’s team actively enhances the ecosystem with innovations like Shibaswap (a decentralized exchange) and the Shiboshi NFT collection. These developments foster engagement and drive community growth.
• Accessibility: SHIB’s low price per token – even at its peak – makes it affordable for most investors. It’s also widely available on major platforms like Coinbase, Crypto.com, and Uniswap, ensuring easy access.
• Burning mechanism: Shiba Inu gained attention when Vitalik Buterin burned 410 trillion SHIB, boosting scarcity and value potential. The project also incorporates ongoing built-in and burning mechanics to further reduce its total supply and drive value for investors.

Cons of Shiba Inu

• High volatility: Like other memecoins, SHIB experiences dramatic price swings fueled by speculation and hype rather than fundamentals. Bearish trends often amplify these swings, making SHIB particularly risky for cautious investors. For example, SHIB's price movements are often more extreme than those of established crypto assets like Bitcoin (BTC). 
• Whale manipulation: A significant concentration of SHIB in a few wallets raises concerns over price control. For instance, Crypto.com holds 20% of its treasury in SHIB, and one whale address owns 10% of the total supply, creating potential for market manipulation.
• Competition: Memecoins were already competitive when SHIB started, and the crypto market has indeed seen the introduction of new tokens such as Pepe (PEPE) and Bonk (BONK). However, as of February 2025, SHIB maintains a significant market capitalization of approximately $8.1 billion, positioning it ahead of many newer entrants. 
• Limited real-world applications: While the Shiba Inu ecosystem is evolving, SHIB’s use cases remain limited. Without broader cross-chain compatibility or merchant adoption, its primary appeal is speculative trading within its community.

What’s going on with SHIB? Understanding SHIB’s rise and fall

Shiba Inu entered the market at an opportune time to capture significant momentum. During the 2020–2021 crypto rally, Bitcoin led the market higher, and Dogecoin became one of the top-performing altcoins. Riding on Dogecoin’s media frenzy and celebrity endorsements, Shiba Inu found it easier to generate hype on social media. Influencers like Milkshake, Gossip SHIB, and LEASHIB helped build a vibrant online community, drawing more people to the #SHIBArmy.

However, SHIB’s fortunes turned with the broader market downturn. The collapse of Terraform Labs’ Terra blockchain and the bankruptcies of major crypto firms like FTX sent shockwaves through the industry. Bearish market conditions in 2023 saw SHIB’s market cap hover between $4 billion and $5 billion as investors waited for a catalyst to reignite the market. Despite efforts like large-scale token burns and the launch of Shibarium, SHIB struggled to break out of this range.

In 2024, Bitcoin’s resurgence brought new life to the crypto market, fueling renewed optimism around SHIB. As noted earlier, by February 2025, SHIB remained a dominant player, maintaining a market capitalization of more than $8 billion. While it has yet to reclaim its 2021 highs, renewed capital flow and sustained community support highlight ongoing belief in the memecoin’s future utility and popularity.

So, is Shiba Inu dead?

SHIB has yet to replicate its explosive 2021 run and now faces tougher challenges as the memecoin market grows more crowded. But that’s not enough to label Shiba Inu as a “dead” cryptocurrency. Its 2024 surge to a $20 billion market cap underscores ongoing demand, while developments like Shibarium and increased token burns point to its potential for future growth. Whether the SHIB Army can push the token to reclaim its previous peak or rival DOGE’s dominance remains uncertain, but Shiba Inu continues to be one of the most closely followed memecoins.

Monitor your memecoins on CoinTracker 

Whether you’re a devoted DOGE holder, a devoted member of the SHIB Army, or part of emerging communities like Pepe, Bonk, or dogwifhat, CoinTracker makes managing your memecoins simple. Our Portfolio Tracker seamlessly integrates with exchange APIs and wallet addresses, consolidating all your transactions in one place. With CoinTracker, you can effortlessly import your data into tax forms, ready for a CPA or platforms like TurboTax and H&R Block.

Discover all the features CoinTracker offers that make reporting crypto taxes a breeze.

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.