Shiba Inu's 2021 Hype Fades—Lack of Utility and Burns Stalls Resurgence

Shiba Inu's 2021 meteoric rise, which saw the meme coin surge into the spotlight, has since faded. As of 2025, the asset continues to trade at 85% below its historical peak of $0.00008616 [2]. Experts and market observers have identified several factors contributing to SHIB's underperformance. Notably, the fading hype that once surrounded the token in 2021 appears to have significantly diminished. Unlike its earlier days, SHIB now struggles to capture the attention of crypto traders, which has played a key role in dictating its price trajectory [2]. Additionally, the project's lack of substantial utility has become a critical concern. Although Shiba Inu launched its layer-2 network, Shibarium, in 2023, development within this ecosystem has remained limited [2]. Analysts suggest that increased innovation and application development on Shibarium could stimulate renewed investor interest and potentially drive a price resurgence.

Further compounding the issue is the lack of significant token burns. In 2021, Vitalik Buterin's massive burn of SHIB supply was a pivotal catalyst for the coin's rally. However, similar activity has been minimal in 2025 [2]. This absence of large-scale token destruction may have contributed to declining investor enthusiasm. The broader market dynamics have also played a role. The 2025 crypto market has been marked by extreme volatility, leading to increased caution among investors, particularly concerning speculative assets like SHIB [2]. In contrast, major cryptocurrencies such as Bitcoin and Ethereum have achieved record highs, attracting capital away from lower-utility tokens [2].

Despite these challenges, experts remain cautiously optimistic. An interest rate cut, a scenario increasingly being considered by major central banks, could provide the necessary tailwind for SHIB to regain traction [2]. Analysts also point to the broader meme coin market, which has recently seen a significant $14 billion surge since July 2025. While SHIB has yet to benefit from this trend, there is speculation that renewed market momentum could eventually extend to the token [2].

The broader context for SHIB's position is shaped by the 2021 bull market's legacy, which set high expectations for the token. However, the crypto market has since evolved, with investor focus shifting toward protocols that deliver tangible utility and long-term value [2]. For SHIB to re-enter the spotlight, the project will need to demonstrate stronger fundamentals and ecosystem growth. This includes not only technological innovation but also community-driven initiatives that can reignite investor confidence.

While SHIB's current trajectory remains uncertain, the project's potential for a rebound hinges on key developments. The launch of Shibarium was a step in the right direction, but its success will depend on active development and adoption by developers and users alike [2]. In this sense, SHIB's future is closely tied to its ecosystem's ability to evolve. If the project can attract more applications and utility, it may yet see a resurgence in market interest. For now, however, the coin continues to trade in a downtrend, underscoring the need for strategic improvements and renewed momentum.