“SHIB often benefits from sector-wide speculative flows rather than needing its own news first,” Perplexity stated.
It was late 2021 when the self-proclaimed Dogecoin killer shocked the cryptocurrency world with a massive price surge, pushing its market capitalization past $40 billion.
However, that peak was short-lived, and the Shiba Inu headed south before seeing a clear rebound in 2024 (although it did not reach its historic peak). The past year has been nothing but disappointing for the token, whose price fell by 60%. And while disbelief may currently be high within the community, we asked three of the most popular AI chatbots what could spark a major revival.
Catalysts
According to ChatGPT, SHIB is no longer viewed as a pure meme coin, meaning its future increasingly depends on whether its ecosystem is actually used. One major factor that could fuel a renaissance is the widespread adoption of shibarium.
The Layer 2 measurement solution is specifically designed to enhance the Shiba Inu ecosystem by reducing transaction fees, improving speed, and enhancing scalability. It was official Fired In the summer of 2023, in its early days, it generated huge interest and facilitated millions of dollars in transactions daily. Last year, though, it was protocol exploitedAfter that, the numbers were greatly reduced.
Next on ChatGPT’s list is the Shiba Inu mechanism, adding that the “huge supply” of the meme currency has always been the biggest problem it faces.
“If daily activity becomes massive — gaming, payments, DeFi apps, AI, etc. — burn rates could accelerate dramatically. A true recovery will probably require the market to believe that supply can shrink dramatically over time,” she added.
Last but not least, the chatbot hypothesized that the introduction of the SHIB Spot ETF could positively impact the token price as it would attract more investors into the ecosystem. Recall that US regulators have already approved the launch of such products using ETH, XRP, SOL, DOGE and other altcoins as underlying assets.
Perplexity agreed with ChatGPT’s observations regarding the burn rate and role of Shibarium, adding that a renewed meme season may also greatly benefit SHIB:
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“When Dogecoin, Pepe, and similar coins start appearing together, SHIB often benefits from sector-wide speculative flows rather than needing its own news first.”
“Bitcoin Effect” and more
The third chatbot we consulted is Gemini from Google. He suggested that SHIB’s next breakout will largely depend on Bitcoin’s price action, noting that the meme coin has matured to a point where it is unlikely to be isolated.
“If Bitcoin (BTC) breaks all-time highs and market liquidity increases, the ‘hot money’ typically shifts from BTC to Ethereum, and then to high-risk/high-reward memecoins like SHIB.”
In addition, Gemini touched on the importance of whale activity. It claimed that the Shiba Inu has limited opportunity to post a clear recovery without the participation of major investors.
