Key Points

If Shiba Inu speeds up its coin burning process and enhances its usefulness and acceptance, the demand for the token may increase.
Competition exists from more established cryptocurrencies in areas like value storage and payments.
Even during another meme token surge similar to 2021, investors might prefer alternative digital assets.

Introduced in 2020, Shiba Inu has delivered remarkable profits to its initial investors. Yet those gains now seem distant as the cryptocurrency has declined sharply over recent years.

Some hopeful buyers anticipate a recovery soon. Is it realistic for this meme coin to create millionaires?

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The main positive scenario for Shiba Inu

Although Shiba Inu achieved massive past gains, its prospects appear limited. Its current price remains about 95 percent below the all time high as of June 30. Brief price increases have not restored much community optimism.

Several factors could drive significant growth. The token would need to increase its burning rate substantially. Over the last 30 days only 112.4 million tokens were removed from circulation, representing roughly 0.0002 percent of total supply annually.

New developments could also help. If Shibarium, ShibaSwap, Shib the Metaverse or similar projects deliver real benefits, interest in the token might grow.

A fresh wave of meme token enthusiasm could occur as well. Market excitement like that seen in 2021 might direct funds toward even speculative assets, potentially benefiting Shiba Inu.

Strong competition across multiple areas

Supporters hope for improvement, yet conditions remain challenging.

Rivals exist in every category. Bitcoin offers a fixed supply of 21 million coins that Shiba Inu cannot match for scarcity. Its enormous supply of 589 trillion tokens prevents it from serving as a reliable store of value.

In payments, networks such as Solana and XRP attract institutional interest due to speed and low costs, leaving Shiba Inu far behind. Stablecoins continue to draw significant investment.

Another meme coin boom might provide temporary support. Even then, many other options exist for high risk speculation, including Dogecoin, MemeCore and Pepe.

Shiba Inu has dropped 95 percent from its October 2021 peak. The chance of a full recovery appears very small, and millionaire level gains seem unlikely for holders.

Is now the time to purchase Shiba Inu?

Before considering an investment, review this information.

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The author holds no positions in the mentioned assets. Positions exist in Bitcoin, Solana and XRP with a standard disclosure policy in place.

Opinions expressed are those of the writer and may not represent the views of any affiliated organizations.