Time To Ditch Shiba Inu?

People used to go crazy over meme coins in 2021. Shiba Inu is one of those coins that some investors still have faith in. However, things aren't going so well for Shiba Inu in 2023, despite going up 24%. It's not as good as Bitcoin, which went up over 73%.

Shiba Inu's price has dropped 10% in the last month, which is worrying. The loss of momentum is a bigger issue. Investors are seeking concrete results. Shiba Inu could be incapable of delivering them.

This year, everyone thought that the launch of Shibarium would make Shiba Inu much better. Developers would want to use it more because it would be faster, cheaper, and easier. But did it work out like that?

Shibarium was delayed and still in beta test mode. Questions about code and functionality exist. More transactions and wallets, but no development on top of the blockchain yet. Promises of "billion-dollar companies" building on Shibarium, but no progress made yet.

Shiba Inu was supposed to have a second catalyst that would increase the price. This catalyst is called coin burning, where coins are sent to a wallet that can't be used, which takes them out of circulation. The objective of coin burning is to decrease the number of available coins. Since there are a lot of coins circulating (589.5 trillion), the Shiba Inu community created coin-burning projects to reduce the supply. By decreasing the supply, they could increase the price of the coin.

The picture came from Getty Images.

Coin burning isn't making a big difference in price because it's not happening quickly enough. This is just a fact that people investing in Shiba Inu have to accept. For March, 7.68 billion coins were burned, but in April, only 3.26 billion were burned. Even though it may seem like a lot, when you think about how many Shiba Inu coins exist, it's really not that significant.

If you burn 50 billion coins each year (that's 4 billion a month), it will still take you 20 years to decrease the coin supply by 1 trillion. But, even if you do this, you will still have 588.542 trillion coins left. That's much more than the total maximum amount of Bitcoin in circulation, which is only 21 million.

Metaverse: What Went Wrong?

The Shiba Inu metaverse project was supposed to be exciting. It was ahead of the metaverse trend. But there is still too much hype. The game experience is not available yet. You can only buy virtual land. It's just another way to burn Shiba Inu coins. Crypto influencers say it's "the new talk of Hollywood," but I don't get it.

Consider Buying Shiba Inu?

In the end, Shiba Inu isn't valuable for short-term play. Other meme coins, like a frog-themed one, have more momentum. This frog coin went up 2,100% in the past month.

In financial markets, they say "Sell in May and go away." If you have Shiba Inu, I suggest you sell it now and don't hope for a comeback. After your summer vacation, you can check the crypto markets again.

Dominic Basulto owns Bitcoin. The Motley Fool also owns and suggests Bitcoin. The Motley Fool lets you know about their ownership.