Shiba Inu Coin (SHIB) once experienced a mythic surge, skyrocketing from $100 to $2.35 million, making it a typical representative of the meme coin frenzy in 2021. However, the current market environment has undergone a radical change, the era of low Intrerest Rate has ended, retail enthusiasm has waned, and the Musk effect is no longer as significant.

In this new market landscape, we need to reassess the prospects of Shiba Inu Coin. First, the entire meme coin market is experiencing a significant retreat. The total market value of meme coins reached a peak of $137 billion in 2024, but by 2025 it plummeted to $49 billion, a drop of as much as 62%. This data clearly reflects the waning confidence of investors in purely speculative assets.

As a representative of the second generation of meme coins, Shiba Inu Coin is facing strong challenges from emerging projects. For example, Pepeto (PEPETO) is attracting a lot of user attention through its innovative zero-fee decentralized exchange and staking program with an annualized return of up to 242%.

At the same time, regulatory risks are also escalating. The collapse of political meme coin projects, such as the failures of LIBRA and TRUMP coin, has raised the alarm among regulatory agencies. The U.S. Securities and Exchange Commission (SEC) has launched investigations into several meme coin projects, and if SHIB cannot demonstrate its real application value, it may face severe compliance challenges.

Another trend worth noting is the significant decline in retail participation. Taking India, one of the largest markets for SHIB, as an example, its trading volume share plummeted from 9% in 2024 to just 4.3% in 2025, and the number of new users has stagnated. Without fresh blood being injected, relying solely on the competition among existing users makes it difficult to sustain extreme price surges like in the past.

Nevertheless, the Shiba Inu coin team is still working hard to boost market confidence through token burning mechanisms and ecosystem development. However, whether these endogenous reforms can offset the adverse impacts of the external environment remains an open question.

In summary, although Shiba Inu Coin once created a remarkable investment myth, it is unlikely to replicate its former glory in the current complex and ever-changing market environment. While investors pay attention to the future development of Shiba Inu Coin, they should also remain rational and fully recognize the high-risk characteristics of the meme coin market.