Is Shiba Inu Still Worth Buying -- or Has the Meme Coin Moment Passed?
The last year and a half hasn't been kind to Shiba Inu.
By Lyle Daly
Shiba Inu (SHIB +0.46%) has suffered a steady decline over the last 18 months, and it even recently lost its place as the second-largest meme coin. That "honor" now goes to MemeCore, behind long-term leader Dogecoin.
If you have some SHIB tokens in your crypto wallet, or you're wondering whether to invest in hopes of a comeback, here's an honest look at Shiba Inu's prospects.
The Shiba Inu team has tried to establish an ecosystem
The Shiba Inu team, perhaps recognizing that interest in meme coins declines quickly, has set up an ecosystem of decentralized applications around it. This includes a decentralized exchange called ShibaSwap, Shib the Metaverse, and a layer-2 blockchain called Shibarium.
ShibaSwap has been the most successful, which isn't saying much. The biggest decentralized exchanges, including Uniswap, PancakeSwap, and Hyperliquid, all have over $300 million in trading volume over the last 24 hours (as of June 16). ShibaSwap has less than $100,000 in 24-hour volume, putting it outside the top 250.
Data is scarce on Shib the Metaverse, but it probably hasn't fared too well, since the metaverse never really caught on. Activity on Shibarium is minimal -- it has generally processed between about 1,000 and 5,000 transactions per day this month. For comparison, Polygon and Base regularly process over 7 million transactions per day.
Shiba Inu has little (if any) fundamental value
Cryptocurrencies that find long-term success usually have a real use case or a unique source of value. That's not the case with Shiba Inu.
It doesn't have the built-in scarcity that gives Bitcoin value, with its fixed limit of 21 million coins. Shiba Inu has a maximum supply of 589.55 trillion SHIB tokens, so there's nothing scarce about it -- one of the reasons Bitcoin costs over $60,000 and Shiba Inu a fraction of $0.01.
Shiba Inu doesn't have anything special to offer from a payments perspective, as XRP does with its role on the Ripple payments network. And despite an attempt to establish an ecosystem, Shiba Inu is nowhere near the most successful blockchain networks in that regard. All you're left with is a Dogecoin imitator.
Is the meme coin moment over?
I wouldn't write off meme coins entirely just yet. MemeCore has been extremely successful since launching last year, indicating that there's still an appetite for meme coins among crypto enthusiasts.
But with thousands of meme coins out there, finding one that's going to take off is next to impossible. You're much better off sticking to more reliable crypto investments, such as Bitcoin, Ethereum, and cryptocurrency stocks. To be clear, these can still be highly volatile, but there's a legitimate argument for them as investments. Buying Shiba Inu or other meme coins is closer to lighting your money on fire than investing.