Why Has Shiba Inu Fallen for Over a Year? Is There Still a Chance for a Rebound?

▲ Shiba Inu (SHIB)/AI-generated image ©

An analysis suggests that Shiba Inu (SHIB)'s presence, which once dominated the memecoin market, is gradually weakening as it has continued its downward trend for over a year since its peak at the end of 2024.

According to the cryptocurrency media Watcher.Guru on May 6 (local time), SHIB has been on a continuous downward trend since rising to $0.00003284 in December 2024. The media diagnosed that Shiba Inu was a representative memecoin that recorded the strongest rise in the 2021 bull market, but in recent years, it has shown a sluggish performance amid changes in market environment and weakening investor sentiment.

The media pointed to macroeconomic uncertainty and geopolitical tensions as the biggest background. It explained that as investors strengthened their risk-averse tendencies in 2025, the entire memecoin market began to face pressure. In particular, despite two interest rate cut announcements at the end of 2025, market sentiment did not fully recover, and SHIB had already entered a downtrend even before the full-blown risk-off market began.

Attempts to expand the Shiba Inu ecosystem also failed to garner market reaction as much as expected. The Shiba Inu development team launched the Shibarium Layer 2 network in 2023 and also unveiled the ShibOS platform, which supports companies' Web3 transition, and metaverse projects. However, the media reported that these services did not lead to widespread user adoption.

The memecoin's unique 'structure dependent on online buzz' was also pointed out as a problem. In recent years, new memecoins such as Solana (SOL)-based Pepe (PEPE) and Bonk (BONK) have successively emerged, diversifying market interest. The media evaluated that in this process, SHIB's popular buzz and influence have weakened compared to the past.

Experts analyze that memecoins tend to quickly lose market presence if continuous community interest and online buzz are not maintained. The media diagnosed that SHIB has also shown signs of gradually losing its power in this trend over the past few years.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*