In November 2021, the total market capitalization of all cryptocurrencies in circulation hit a record high of $2.9 trillion. That figure shrank by as much as 72% to just $829 billion in the year that followed, as investors grappled with a wave of high-profile collapses across the industry.
But a recovery is underway, and the crypto market valuation has climbed back about $2.5 trillion, which means a new record high is within reach. More than half of that value is represented by Bitcoin (CRYPTO: BTC), which has a market capitalization of $1.3 trillion.
Bitcoin has surged 52% in 2024 so far and currently trades at more than $64,000, not all that far from its all-time high.
Bitcoin has been bested by an unlikely cryptocurrency this year
A rising tide lifts all boats, and the renewed positive sentiment toward cryptocurrencies is driving a resurgence in even the most speculative corners of the industry. Meme token Shiba Inu (CRYPTO: SHIB), for example, is sitting on a whopping 175% gain this year.
However, unlike Bitcoin, Shiba Inu is still trading almost 70% below its all-time high. The token delivered a staggering 45,278,000% gain in 2021, which would’ve been enough to turn a mere $3 into more than $1 million, but it proceeded to lose more than 90% of its value during the crypto crash of 2022.
So the surge in 2024 is masking a grim broader picture for Shiba Inu, but could it stage another historic run and reach $1 per token from its current price of $0.000028?
Shiba Inu lacks upside catalysts
Cryptocurrencies used to be touted as a viable replacement for traditional money. Truly decentralized coins like Bitcoin have a fixed supply and can’t be controlled by any individual or government. It differentiates these cryptos from fiat currencies, like the U.S. dollar, which can be printed as central banks see fit, which devalues them over time.
However, neither consumers nor businesses have adopted cryptocurrencies in any meaningful fashion. A mere 9,428 merchants around the world accept Bitcoin as payment for goods and services, and just 932 accept Shiba Inu. It isn’t surprising, because using a currency that can rise in value…
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