- Shiba Inu struggles as meme coin market cap drops $12B in just one month
- Shibarium TVL crashes over 70% since December, showing declining engagement
- SHIB burn rate plunges 96%, weakening price support and community momentum
Shiba Inu (SHIB) has experienced a minor uptick in its daily performance, gaining 1.83% in the last 24 hours. Still, its overall price movement reflects a troubling trend. Over the past seven days, SHIB has dropped by 2.10%, showing clear signs of bearish sentiment.
Despite the coin trading at $0.00001141 with a daily trading volume nearing $89 million, the larger picture points to a declining interest in meme coins. The total meme coin market cap has dropped from $64 billion to $52 billion in just one month. This suggests a possible shift in investor attention toward larger, more stable assets like Bitcoin, especially as some analysts predict a sharp rally in BTC price.
Declining Shibarium Activity Weighs on Sentiment
One of the clearest indicators of weakening momentum is the drop in Total Value Locked (TVL) on the Shibarium network. According to data from DeFiLlama, the TVL has fallen from $6.44 million in December 2024 to $1.86 million today.
This steep decline reflects reduced user engagement and developer activity on the platform. As a result, the network’s shrinking utility has placed further pressure on the token’s value.
Additionally, SHIB’s token burn mechanism has also slowed significantly. In the last 24 hours, the burn rate dropped by 96.83%, with only 752,981 tokens burned.
The burn rate plays a vital role in reducing token supply, which in turn helps support price growth. A sharp decline in this activity signals less community involvement and dampens investor optimism.
Meme Token Market Faces Broad-Spectrum Fatigue
The downturn in SHIB’s price isn’t isolated. Other meme coins are also struggling to maintain their value.
Investor appetite for high-risk speculative tokens appears to be declining. This may be due to shifting priorities, with traders now eyeing more promising returns from leading cryptocurrencies like Bitcoin.
Moreover, Shiba Inu’s derivatives market reflects mixed signals. While the trading volume has dropped nearly 30% to $95.16 million, open interest has slightly increased by 0.39% to $131.44 million. This indicates that although fewer trades are taking place, some investors are still holding on to their positions, possibly waiting for a reversal.
