Shiba Inu (SHIB), once one of the fastest-rising names in the cryptocurrency market, is showing signs of fatigue in the long run. Created in August 2020 and branded as a “Dogecoin killer”, SHIB experienced a rapid rise during the 2021 bull cycle. Early adopters saw returns estimated at over 17,000,000% during its peak.
Despite these early results, SHIB has not been able to keep pace with other major meme coins over the last months. While some recent gains have helped it climb slightly, comparisons to other tokens highlight its diminishing impact, limited use, and declining support.
Why SHIB Can’t Catch Up
Dogecoin, launched in 2013, still holds a strong grip on the meme-coin sector. With a market cap close to $36.36 billion compared to SHIB’s $8.8 billion, and daily volumes averaging $2.6 billion against SHIB’s $276 million, the difference is significant. Dogecoin benefits from a dedicated blockchain, wider recognition, and ongoing interest from high-profile figures, most notably Elon Musk.
In contrast, SHIB is an ERC-20 token built on Ethereum, making it subject to the limitations of the Ethereum network, such as slower transactions and higher fees.
Part of the issue lies in visibility. Dogecoin often draws more mainstream attention, both from social media and financial news. SHIB’s attempts to stay relevant through initiatives like ShibaSwap, NFTs, and token burns have not had the same reach or user uptake. Despite promising developments, the results have not been reflected in stronger price momentum.
Performance metrics show this disparity clearly. Since the start of July 2025, SHIB has gained about 26%, while Dogecoin has gained around 35%. Even in broader market rallies, SHIB has not kept pace with leading digital assets, signaling a deeper issue than short-term volatility.
Over the past week, SHIB gained strong upward momentum, climbing from 0.00001250 to a high of 0.00001536, marking a 22.8% increase. The breakout above the 100 EMA (0.00001323) and 200 EMA (0.00001451) shows clear bullish strength. Daily closes stayed above the 20, 50, and 100 EMAs, confirming consistent buying pressure throughout the week.
Why SHIB Falls Behind Other Meme Coins?
1. Declining On-Chain Engagement
SHIB’s blockchain activity shows clear signs of a slowdown. SHIB holders with 1M–1B tokens have reduced their holdings since March. Wallets with 1M–10M now hold 2.03T (down from 2.05T), and 10M–100M holders have 9.35T (down from 9.41T). The Shibarium Layer-2, aimed at reducing gas fees and increasing use, hasn’t helped much. TVL on the network is down from $6.4 million to $1.9 million.
2. Competition from Newer Meme Coins
The broader memecoin market has shrunk, but some tokens still draw investor attention. BONK on Solana offers low fees and DeFi features, and PENGU gained 225% in a month after the ETF news.
3. Mixed Messaging and Identity Drift
SHIB’s brand has changed. It started as a meme coin but now pushes DeFi, NFTs, and Layer‑2 tools. This shift may alienate original supporters who liked the humor and simplicity. Critics say the unclear direction has created doubt and confusion, making it harder for SHIB to keep its audience.
4. Uneven Token Distribution
Shiba Inu’s top 10 wallets hold 61% of the supply. This imbalance adds risk; if big holders sell, it can cause major drops. Retail traders are left exposed to sudden moves, limiting their interest and making the market less predictable for small investors.
5. Structural Limitations
Unlike Dogecoin, which runs on its own chain, SHIB is tied to Ethereum. That connection creates problems: high gas fees and limited control over upgrades. SHIB’s capped supply also limits flexibility. These factors reduce its ability to evolve or react to changing trends compared to tokens with independent infrastructure.
Fewer Events, Lower Buzz, and Aged Appeal
The absence of major promotional events or viral momentum has also worked against SHIB. While Dogecoin can still climb on the back of a single tweet from Elon Musk, SHIB lacks such attention. Without similar publicity boosts, its visibility in the broader market continues to shrink.
Shibarium, even with reaching 1 billion transactions, has not impacted token demand. Usage has not matched network activity. Metrics suggest people may be experimenting with tools, but not buying or holding the token in meaningful numbers. This mismatch has hurt investor confidence.
