The total value of all cryptocurrencies in circulation currently stands at $3.1 trillion, which is down 29% from its peak of $4.4 trillion in late 2024. No major coins or tokens have escaped losses, not even Bitcoin, which is down 28% from its peak. However, the more speculative end of the market is definitely feeling the most pain.
Meme tokens Dogecoin (DOGE +3.06%) and Shiba Inu (SHIB +2.71%) fell by 61% and 66%, respectively, during 2025, but they are down even more sharply from their record highs set way back in 2021.
Both cryptocurrencies are facing structural issues, which is why I predict they will suffer further declines of at least 50% during 2026. Read on.
Image source: Getty Images.
Dogecoin's never-ending supply has consequences
Dogecoin was created in 2013 by two friends who used the Doge meme as inspiration, and in their own words, the entire exercise was a joke. Their goal was to lighten the mood in the cryptocurrency industry, which had become increasingly populated by investors who felt Bitcoin was poised to take over the global financial system.
But things got serious in 2021, when Dogecoin amassed a market capitalization of over $90 billion, making it more valuable than most companies in the S&P 500. Unfortunately, the token's incredible ascent wasn't driven by a tangible use case, but rather by speculative investors who were betting the next person would come along and pay a higher price than they did.
Through a series of promotional social media posts and even an appearance on Saturday Night Live, Tesla CEO Elon Musk was one of the key figures fueling Dogecoin's incredible run in 2021. But investors quickly realized he didn't have a concrete plan to create value, so when the buying frenzy petered out, Dogecoin plunged by more than 90%.
CRYPTO: DOGE
Key Data Points
As things stand today, Dogecoin isn't a widely accepted form of payment, nor is it recognized as a store of value. Those are clear demand issues, but I also want to point out a glaring supply problem.
Dogecoin is minted through a process called mining, which involves using powerful computers to solve complex problems to validate transactions on the blockchain. Miners are given new tokens as a reward for participating. Although a maximum of 5 billion new tokens can be mined each year, there is no end date. So, Dogecoin's supply will grow forever.
This will have a constant dilutive effect, making each token less valuable over time. It's a key reason that I predict Dogecoin will soon retest its 2022 low of $0.05, representing 58% downside from its current price.
Shiba Inu's best returns are in the rearview mirror
Shiba Inu was created in 2020 by an anonymous developer named Ryoshi, who observed Dogecoin's success and wanted to offer a similar cryptocurrency but with more functionality. While Dogecoin runs on its own blockchain, Shiba Inu was built on top of the Ethereum network, so it leverages existing, proven, and scalable infrastructure that could (in theory) pave the way for more use cases in the real world.
The project was a massive success, at least initially. Shiba Inu soared by an eye-popping 45,278,000% during 2021, which would have been enough to turn a perfectly timed investment of just $3 into over $1 million. But the token was struggling to gain traction with anyone other than speculative investors, and that isn't enough to build sustainable long-term upside.
To this day, just 1,115 businesses are willing to accept Shiba Inu as payment for goods and services (according to crypto directory Cryptwerk). The token hasn't proven its worth as a store of value, either, considering it hasn't set a new record high in almost five years. To make matters worse, with 589.2 trillion tokens in circulation, Shiba Inu has a supply problem, which could be a major barrier to further upside.
With the 2021 speculative frenzy firmly in the rearview mirror and a stark lack of demand from any other sources, Shiba Inu has plummeted by 91% from its all-time high. The token will struggle to mount a recovery unless it finds a legitimate use case capable of drawing in new investors, but there are no signs of that happening right now.
As a result, Shiba Inu's relentless decline is likely to continue, and I think it could lose a further 50% of its value during 2026.
