Shiba Inu (SHIB) could slowly slip out of the top 40 projects by market cap. The popular dog-themed crypto has currently fallen to the 37th position, with a market cap of $4.17 billion. If the project continues on its current trajectory, it could drop out of the top 40 projects. SHIB was once among the top 15 projects, but the last few years have been rough on the popular cryptocurrency. Let’s discuss why Shiba Inu’s (SHIB) market cap is falling, and if the project can ever recover.

Why Is Shiba Inu’s Market Cap Falling? Can It Rebound?

Shiba Inu’s (SHIB) has faced substantial challenges in 2025. The asset climbed to $0.000032 in December 2024, but has since experienced a gradual decline. According to CoinGecko’s Shiba Inu data, SHIB’s price is down by 11.2% over the last month and 65.7% since December 2024.

Shiba Inu’s (SHIB) falling market cap coincides with a larger market downtrend. However, SHIB has also suffered the consequences of dipping buzz. Memecoins are dependent on word of mouth and hype for price surges. The hype around SHIB has significantly dipped over the last few years. While the Shiba Inu team has tried to bring more utility to the project, adoption has been low. Applications built on the Shibarium network are also limited in number.

Despite the ongoing lackluster performance, Shiba Inu (SHIB) could see a recovery once the larger crypto market rebounds. The project is still one of the most popular cryptocurrencies in the market. SHIB fans are among the most loyal in the crypto realm, and have participated in several activities to push for further SHIB adoption.

Also Read: Experts Say Shiba Inu’s Best Days Are Over: Is That Accurate?

Shiba Inu (SHIB) is still far from its best form, but things could change in 2026. Many anticipate Bitcoin (BTC) to climb to a new all-time high next year. BTC hitting a new peak could lead to Shiba Inu (SHIB) gaining significant steam.