- Shiba Inu has declined about 90% since its 2021 peak, raising concerns over its long-term viability.
- The token lacks real-world use cases and shows minimal developer activity and adoption.
- A very large token supply limits its potential for price growth.
- More established cryptocurrencies like Bitcoin and Ethereum offer stronger fundamentals and practical applications.
Neil Patel, a financial analyst, has highlighted several significant risks associated with the meme coin Shiba Inu. The token has seen a roughly 90% drop from its all-time high in late 2021, and concerns extend beyond short-term volatility to issues tied to the coin’s fundamental design and market position.
Unlike Bitcoin and Ethereum, which serve clear blockchain use cases, Shiba Inu does not address any specific real-world problem, as Patel noted, “It’s hard to make the argument that Shiba Inu’s blockchain solves any real-world problem.” Although developers are working on projects such as Shibarium, ShibaSwap, and a planned Metaverse, adoption remains very low. SHIB does not rank in the top 100 cryptocurrencies in terms of developer ecosystem activity, indicating limited technical interest.
In terms of price, SHIB’s all-time high was $0.00008845 on October 27, 2021. Since then, market conditions contributed to a steep decline of about 90%, including a 60% fall this year alone. Patel mentioned, “This long-term trend is hard to ignore, and it might indicate that the investment community is losing interest.”
The token’s massive circulating supply—approximately 589 trillion tokens—also restricts price growth potential. For SHIB to reach $0.01, the market cap would need to surpass the combined value of the world’s largest companies, which is considered unrealistic.
Investors have access to alternatives with stronger fundamentals. Bitcoin’s capped supply and its role in monetary systems, along with Ethereum’s extensive use in decentralized finance and global payments, provide practical use cases for value retention and growth. Patel stated, “There is a vast sea of digital assets to choose from, so investors don’t have to gamble their money on tokens like Shiba Inu. For those who want crypto exposure, the best choice is Bitcoin.”
The Shiba Inu risks extend to the token’s dependence on social media trends and community sentiment, which affect its price unpredictably. Combined with the lack of substantial utility, overwhelming supply, and competition from established cryptocurrencies, these factors raise questions about the token’s long-term investment appeal.
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