Shiba Inu’s recent price action looks like it has entered its middle age and is no longer chaotic and unpredictable. It’s wild days of dramatic upswings have come to an end, where it got the badge of honor, ‘The Dogecoin Killer’. SHIB surged more than 85,000,000% (85 million percent) between 2020 and 2021. It also continued its momentum well into 2023, and then went bust.

Shiba Inu is now suffering from an identity crisis where die-hard fans of the token have stopped relentlessly talking about its prospects. The founding team has mostly abandoned the token, leading to no proper plan in place. All the projects that were launched in the last five years have not been a major success. None of the projects helped to push SHIB’s price up in the charts, leading to negative sentiments.

Also Read: Should You Say Goodbye To You Shiba Inu Millionaire Dreams?

Shiba Inu: Why the Case For a Collapse Is Growing

The most hyped launch of them all is the Shibarium layer-2 solution, which was released in August 2023. The launch itself was delayed by over two years, but still, traders were hopeful that a mechanism to burn SHIB tokens had finally arrived. While the initial days saw Shibarium brimming with activity, it quickly turned into disappointment.

Shibarium was marketed as a ‘SHIB burning mill’ that will send trillions of tokens to the dead wallet. This, in turn, will scale up its price in the charts due to token scarcity. None of that turned reality, as the burns were meager, some even coming to as little as $20 per day. For instance, in May 2025, Shibarium finally burned a total of 1 billion tokens. However, the burns were worth only $15,000.

That is not a significant amount that can change Shiba Inu’s prospects in the charts. 1 billion tokens is a small number compared to its 549 trillion tokens in circulation. Until Shibarium kicks-start bigger burns, Shiba Inu’s case will always be bearish, despite the marketing gimmicks. If the burns decline, a recovery for Shiba Inu will look impossible, but a collapse is inevitable. Traders want utilities now and no longer fall for the hype and buzz.