Shiba Inu (SHIB) had one of the biggest rises during the 2021 bull run. The dog-themed cryptocurrency saw a meteoric rise within months of its launch in August 2020. While SHIB has had a steep price dip over the last few years, the project continues to command substantial clout in the crypto realm. Let’s discuss what exactly made Shiba Inu (SHIB) so popular and what was behind its meteoric rise.
What Made Shiba Inu Popular?
One of the most significant reasons behind Shiba Inu’s (SHIB) incredible 2021 rally was Vitalik Buterin’s token burn, which most SHIB investors already know about. The project sent half of SHIB’s entire supply to the Ethereum co-founder right after its launch. SHIB’s association with Buterin gave it substantial legitimacy and led to a surge in popularity. Buterin, however, decided to burn 90% of the coins he received, leading to a massive supply dip. At the time, there was a significant demand for Shiba Inu (SHIB). The high demand and the sudden supply dip led to a massive price spike for the coin. Early investors made big returns with minimal investment.
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Shiba Inu’s (SHIB) incredible rally led to more people becoming curios about the project. New investors who wanted to make it big in crypto in a short time lined up to buy the asset. SHIB went on to hit an all-time high of $0.00008616 in October 2021. According to CoinGecko data, Shiba Inu (SHIB) has fallen by more than 93% since its peak. However, investors continue to hope for another 2021-like rally. The hope for massive returns continues to fuel SHIB’s popularity.
Can The Coin Regain Its Momentum?
Despite Buterin’s massive token burn, Shiba Inu (SHIB) still has about 589 trillion coins in circulation. The high supply presents a significant barrier to SHIB’s price. However, another massive burn may not be enough to drive the coin’s price. According to lead developer Shytoshi Kusama, SHIB needs to have mass adoption for prices to rally. Therefore, the asset may continue to struggle if masses do not have the confidence to invest.
