It was March 14, 2021, when Elon Musk tweeted on his official Twitter account about getting a Shiba Inu.
Although he primarily referred to the dog, the hashtag he added strongly hinted at a connection to the cryptocurrency of the same name.
The Rise of Shiba Inu Thanks to Musk
The first-ever memecoin, Dogecoin, launched in 2013, gained popularity as a cryptocurrency based on a dog meme. Elon Musk started supporting Dogecoin in early 2021, and by March of the same year, he appeared to turn his attention to Shiba Inu.
Unlike Dogecoin, which is a standalone cryptocurrency, Shiba Inu is a token launched a year earlier. Until March 2021, it had garnered little attention. However, after Musk’s mention, its price skyrocketed from $0.0000005 to $0.000034. This trend continued until November 2021, when Shiba Inu hit its all-time high (ATH) of $0.000088, marking over a 15,000% gain in just 10 months.
Speculative Bubble and Price Drop
This massive rise was clearly a speculative bubble that burst by the end of 2021. Over the next year and a half, Shiba Inu's price dropped below $0.000008, losing over 90% of its value. The decline persisted into 2023, with the token trading below $0.000007.
Even the late 2023 bull market couldn't sustain a rally—Shiba Inu only managed to reach $0.000011. Furthermore, Musk stopped publicly supporting Shiba Inu after July 2022.
Connection to Dogecoin and Recent Boom
SHIB’s price remains closely tied to Dogecoin’s movements. In March this year, when DOGE saw a 140% surge, Shiba Inu also managed to recover to $0.00003. However, subsequent months brought another downturn, with the price stabilizing above $0.000011.
Since October 2024, Dogecoin has experienced another surge, climbing 300% in under two months. Shiba Inu’s recovery began in September, but so far, it has only managed to surpass $0.00003. Unlike Dogecoin, which exceeded its 2024 highs, Shiba Inu is still 65% below its ATH.
Musk’s Role and Shiba Inu’s Future
Since Musk entered politics, his public endorsement of cryptocurrencies has diminished. While he continues to promote Dogecoin—naming his new department DOGE and linking it to Donald Trump’s economic plans—his support for other tokens, such as Shiba Inu or Floki, has faded.
Dogecoin remains a pure memecoin with no significant technological development. Shiba Inu, on the other hand, launched the Shibarium Layer 2 solution to enhance its usability. However, this move has not significantly improved its price.
Conclusion: A New Era for Memecoins
In 2021, Musk’s support helped memecoins like Dogecoin and Shiba Inu achieve unprecedented heights. Today, the market features many new memecoins with stronger promotions, making it challenging for Shiba Inu to reclaim its former glory. Without further publicity or technological advancements, SHIB may find it difficult to shine again.
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