The Hidden Force Stalling Shiba Inu’s Price Rally—And No, It’s Not Token Burns

Forget what you've heard about supply burns—Shiba Inu's price stagnation has a stealthier culprit. Market dynamics are playing puppeteer, and the meme coin's leash might be tighter than investors realize.

Liquidity crunch or whale games? Neither. The real anchor dragging SHIB down is simpler—and far more brutal.

While retail traders obsess over burn rates, institutional indifference is the silent killer. No amount of dog-themed hype can bypass cold, hard market mechanics. After all, in crypto, even the shiniest meme coins eventually face their 'hold my beer' moment against reality.

Key Factor Stopping Shiba Inu’s Price

The one thing that SHIB is essentially missing is hype. Hype was one of the key factors behind many of SHIB’s previous rallies. Granted, Vitalik Buterin’s massive SHIB token burn greatly aided the asset’s 2021 rally. Buterin received half of SHIB’s supply and decided to burn 90% of what he received. While many fantasize about such a burn once again, it simply is not likely to happen again.

Hype is one of the key drivers behind many crypto projects. The NFT boom was deemed the “next big thing” for crypto. This did not pan out quite as well as many hoped. NFTs that sold for millions of dollars have lost nearly 99% of their value. SHIB seems to be facing a similar predicament. Although the project’s massive supply of 589 trillion tokens is another barrier, the hype around the SHIB cryptocurrency has significantly dipped over the last few years.

Shiba Inu lead developer Shytoshi Kusama has also highlighted how burns alone will not drive SHIB’s price. Kusama emphasized the importance of adoption for a price rally. And adoption will likely not increase without the proper hype.

SHIB could very possibly regain its old lustre. The market conditions have to be right, and investor sentiment needs to be high for this to happen. While Bitcoin (BTC) has hit multiple all-time highs, very few assets have followed this pattern. We are yet to see another 2021-like bull market.