Key Insights
- Shiba Inu price falls from its year-to-date high amid weak network metrics.
- Shibarium’s total value locked falls below $1 million, and user accounts dip to only a few hundred.
- Technical analysis places the next major support for Shiba Inu near $0.00000697.
The Shiba Inu (SHIB) token has fallen substantially from its high points earlier this year. It previously traded near $0.00001765 and last November posted a high around $0.0000334. Now it hovers near the psychological level of $0.00010, well below key resistance points. Technical indicators show SHIB remains under pressure. For example, it has fallen under its 50-day and 200-day moving averages, and the Supertrend indicator has flipped bearish. Some analysts now project a drop toward $0.00000697 if current trends persist.
Concurrently, activity on the Shibarium layer-2 blockchain—built as part of the Shiba Inu ecosystem to add utility and burn mechanisms—has decayed. The protocol’s total value locked (TVL) is recorded at under $1 million according to on-chain data. Daily user counts have collapsed, with active accounts numbering only about 243 as of October 22 and just two new accounts on that day. Transaction counts were around 2,300, and the fee income barely registered—about $11 worth on the observed day.
Decline in Usage Undermines Burn Mechanism
Shibarium was designed so that users pay fees in the BONE token, which are then converted into SHIB and burned, reducing inflation. However, the collapse in users and transactions means burn activity has slowed sharply. That undermines one of the core token-economics drivers for SHIB. Meanwhile, large-holder (whale) activity has reportedly declined and token burn efficiency has fallen, further weakening the ecosystem’s structural support.
From a charting perspective, SHIB’s breach of major supports has raised the alarm for further downside. Previous support levels near $0.00001160 have given way and bearish formations such as descending triangles and head-and-shoulders patterns are cited by analysts as frameworks that point toward deeper losses. With trading volume low and momentum fading, the token appears vulnerable unless significant catalysts emerge.
Market Context: Meme Coin Sector Softening
The SHIB decline mirrors broader weakness in the meme-coin segment. For instance, the market capitalisation of meme coins on the Solana chain reportedly declined from about $22 billion in January to around $7 billion more recently. Wider altcoin sentiment has also turned cautious, which leaves SHIB exposed to both ecosystem-specific and sector-wide headwinds.
