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Shiba Inu’s “Middle Age” Crisis: Collapse Risk Grows

Shiba Inu struggles with stagnation, failed projects, and ineffective token burns.

  • Once dubbed “The Dogecoin Killer”, Shiba Inu‘s price action has stabilized, leaving its wild, 85,000,000% growth period between 2020 and 2021 behind.
  • The token now faces an identity crisis with a reportedly abandoned founding team and a series of unsuccessful projects that have failed to boost its value.
  • Its most hyped project, the Shibarium layer-2 solution launched in August 2023, has not delivered promised large-scale token burns, contributing to negative market sentiment.
  • Meager burns, such as $15,000 worth of tokens in May 2025, are insignificant against Shiba Inu‘s 549 trillion circulating supply, making a sustained recovery unlikely.

Shiba Inu (SHIB), the once-volatile meme token, appears to have entered a period of stagnation, according to reports on its recent trajectory. Its era of dramatic, unpredictable price surges, which earned it the moniker “The Dogecoin Killer,” concluded after an extraordinary 85,000,000% rally between 2020 and 2021. The token’s momentum continued into 2023 before ultimately declining.

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Consequently, the project is now suffering from a significant identity crisis as its most ardent supporters have grown quiet. The founding team has largely abandoned the token, leaving no clear strategic plan for its future development. Meanwhile, all projects launched in the last five years have failed to achieve major success and did not positively impact SHIB’s market price.

The most anticipated of these was the Shibarium layer-2 solution, which finally launched in August 2023 after a two-year delay. It was marketed as a mechanism to burn trillions of SHIB tokens, thereby creating scarcity to drive the price upward. However, initial activity quickly turned to disappointment as the promised burns proved minuscule, sometimes amounting to as little as $20 worth of tokens per day.

For instance, Shibarium burned 1 billion tokens in May 2025, a figure valued at only $15,000. This amount is negligible compared to SHIB’s massive circulating supply of 549 trillion tokens. Therefore, without significantly larger burns from its Shibarium platform, the case for SHIB remains bearish. Traders now demand tangible utility and are no longer swayed by hype alone, making a collapse seem increasingly inevitable if the situation does not change.

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