What Will Shiba Inu Be Worth in 2025?

The meme coin craze has brought huge profits to Shiba Inu, but are the gains sustainable heading into next year?

As a result of the meme coin craze in the cryptocurrency market, Shiba Inu (Shiv -8.57%) Continued good performance Bitcoin (BTC -5.28%) Shiba Inu is expected to rise 80% this year. Yes, that’s right. A dog-themed meme coin with no apparent practical use is outperforming digital assets that have been dubbed “digital gold” and “the future of money.” Shiba Inu is expected to rise 80% in 2024, while Bitcoin is expected to rise 55%.

But how sustainable is this performance, and how much will the Shiba Inu be worth in 2025? To answer these questions, let’s look at two possible scenarios.

Best case scenario

In keeping with the eternal optimism of meme coin investors, let’s start with the best-case scenario for Shiba Inu, which assumes that the meme coin craze continues, Bitcoin surges in value as a result of the recent halving, and Shiba Inu finds a way to transform itself from a purely meme coin into a more practical coin.

In this best-case scenario, the price of the Shiba Inu could rise at roughly the same pace as Bitcoin. In previous Bitcoin halving cycles, this has been the pattern. The logic is simple: Bitcoin is the cryptocurrency with the largest market cap, so it tends to drag all other cryptocurrencies down in bull markets. When Bitcoin moves, so does the cryptocurrency market.

All that matters is finding a Bitcoin price prediction for 2025 and assuming Shiba Inu tracks Bitcoin’s performance over the next 12 months. For example, research and brokerage firm Bernstein predicts that Bitcoin could reach a price of $200,000 in 2025. Based on today’s Bitcoin price of $65,000, that’s a 200% increase. A quick calculation puts Shiba Inu’s market cap at $32 billion and a price per token at $0.00005.

However, from my perspective, this approach is not intellectually rigorous: it does not include any kind of fundamental analysis, does not take into account the true correlation between Shiba Inu and Bitcoin (which is certainly not 1:1), and assumes that the 2024 Bitcoin halving cycle will roughly repeat the same pattern as the 2020 Bitcoin halving cycle.

Worst case scenario

The worst case scenario is what happens when we start to stress test some of the overly optimistic assumptions from the best case scenario. For example, consider the assumption that the 2024 Bitcoin halving cycle repeats roughly the same pattern as the 2020 Bitcoin halving cycle. Given that there will be diminishing returns with each new halving cycle, this is unlikely to happen.

Or, for example, let’s question the assumption that investors will continue to perceive Shiba Inu as one of the top meme coins during the current meme coin craze. This may have been true in 2021, the last time this craze occurred in the crypto market. But back then, Shiba Inu was one of only a handful of meme coins. Today, there are literally tens of thousands of meme coins.

Image source: Getty Images.

And then there’s a scary thought: Shiba Inu might not be the top dog anymore. Shiba Inu is up 80% this year, but dog-themed meme coin Dog Whiff Hat (WIF -14.99%) It’s up 1,300% this year. Or how about a frog-themed meme coin? Pepe (Pepe -12.83%) It’s up 800% this year. Looking at numbers like these, it’s easy to imagine investors starting to pull their money out of Shiba Inu and into faster-growing meme coins.

And finally, what about the key blockchain metrics used to evaluate Shiba Inu? We hear all the time about all the activity happening on the Shiba Inu blockchain and how it’s garnering attention among users and developers. But Shiba Inu’s Total Value Locked (TVL) is microscopically just $1.89 million. This ranks 143rd among all blockchains, showing that Shiba Inu’s “utility” theory is still very weak.

So, in a worst case scenario, Shiba Inu could see a significant drop in value heading into 2025. Currently, Shiba Inu has a market cap of nearly $11 billion. Its next closest meme coin competitor, Pepe, has a market cap of $5 billion. If these two meme coins were to swap positions, Shiba Inu could theoretically drop in value by 50%.

Should you invest in meme coins?

The allure of investing in meme coins is easy to understand. But turning $1,000 into $1 million by investing in the right meme coins is much harder than you might think. It’s also too speculative and risky to be a long-term investment strategy. Unfortunately, it may be too late to become a Shiba Inu millionaire.

As a result, we would not recommend investing in Shiba Inu at this time.If you are confident that Shiba Inu can track Bitcoin’s performance over the next 12 months, you may want to consider buying Bitcoin.

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