Shiba Inu has been struggling to maintain its momentum in recent months, with its price declining by over 14% year-to-date. Despite this, there are some positive signs that could support a bullish outlook for the cryptocurrency.
One potential catalyst is the possibility of Shiba Inu being included in a spot ETF. A recent filing by T. Rowe Price identified SHIB as a potential component, and an SEC decision on this matter is expected soon. If regulators approve, it could pave the way for ETFs linked exclusively to SHIB, which could boost price momentum and attract institutional investors.
Another positive factor is Shiba Inu's ongoing token burn mechanism. This process aims to reduce the massive 589 trillion supply of SHIB tokens and support long-term price appreciation if demand rises. While burn activity has slowed in recent times, it could regain traction if community participation increases.
However, there are also some risks that could limit Shiba Inu's prospects. Fading community momentum is a major concern, as the project's early supporters have migrated to other projects or exited the market amid prolonged declines. Additionally, the team's continued anonymity has raised questions about transparency and accountability in the project.
Ultimately, Shiba Inu's long-term success will depend on its ability to rebuild grassroots support and deliver sustained ecosystem growth.