Shiba Inu (SHIB) was once one of the best performing cryptocurrencies, especially during the 2021 bull run. The popular cryptocurrency saw a massive price rally within months of its launch in August 2020. However, the last few years have not been kind to SHIB.According to CoinGecko’s SHIB data, the coin climbed to $0.00003284 in December 2024, but has since been on a downward trajectory. Let’s discuss why Shiba Inu (SHIB) has been falling for more than a year, and what you should know before investing.

Despite its incredible popularity, Shiba Inu (SHIB) is a high-risk memecoin. Memecoins carry some of the highest risks in the market, and often experience violent price swings. Macroeconomic uncertainties and geopolitical tensions are major reasons why memecoins, and other cryptocurrencies, see price fluctuations.

Investors began a risk-off approach in 2025 after rising macro uncertainties and geopolitical tensions. Even the announcement of two interest rate cuts in late 2025 was not enough to pivot investor sentiment. However, Shiba Inu (SHIB) had been on a downward trajectory even before the market began its risk-off pattern. This could mean that investors were not very confident on SHIB’s performance.

Shiba Inu (SHIB) has also tried to bring more use cases to its ecosystem. The team launched the Shibarium layer-2 network in 2023, it revealed the ShibOS, a platform to help businesses transition to Web3, and it also released a metaverse. However, these products were not enough to garner mass adoption.

Also Read:What Is the Highest and Lowest Price for Shiba Inu (SHIB)?

Memecoins often rely on online buzz for relevance. Over the last few years, we saw the launch of several new memecoins, especially on the Solana network, such as Pepe (PEPE), Bonk (BONK), etc. These memecoins seem to have stolen some of Shiba Inu’s (SHIB) spotlight. Moreover, SHIB’s popularity, although still high, has taken a hit over the years. Without much online noise, memecoins tends to fizzle out. This is what may have happened to SHIB over the last few years.

Source: Watcher Guru