| Key Points: – Oversized circulating supply with slow burns caps upside and pressures price. – Shibarium traction lags; weak TVL and activity undermine utility-driven demand. – Risk-off sentiment thins liquidity; small sell-offs halt rebounds, keeping ranges. |
Shiba Inu’s price stagnation reflects three reinforcing forces: a huge circulating supply with an insufficient burn pace, modest utility gains from Shibarium, and risk‑off sentiment that keeps liquidity thin. Together, these limit upside even when broader crypto benchmarks stabilize.
In practice, that means rallies fade quickly without sustained demand growth or structural reductions in supply. Until those inputs improve, the SHIB price tends to oscillate in a narrow range.
The supply overhang remains a primary constraint. Investor caution and a low burn rate have hindered progress, with meme coins facing stiffer resistance during market downturns, as reported by CoinGape.
Utility growth has not kept pace with expectations. According to AInvest News, Shibarium, Shiba Inu’s Layer‑2 built atop Ethereum, has shown low TVL and fallen daily transactions, undercutting the case that on‑chain activity can materially absorb supply.
Market structure is another drag. As analyzed by CoinCentral, shrinking volumes and limited whale participation reduce depth, so even small bouts of selling pressure can cap rebounds and keep price action range‑bound.
Tokenomics drag: circulating supply and insufficient burn rate
The tokenomics math is unforgiving. BitcoinInsider relayed analyst Davinci Jeremie’s view that SHIB’s roughly 589 trillion circulating supply makes lofty price targets unrealistic without a burn pace or demand shock large enough to avoid an unsustainably high market capitalization.
Project communications have acknowledged macro headwinds and the difficulty of timing launches into weak tape. “Market crashes make poor canvas for announcements,” said Lucie, marketing lead at Shiba Inu, adding that even positive developments can be “dragged down” by negativity.
For context, at the time of this writing, SHIB recently traded around $0.00000652, with 24‑hour turnover near $113 million and day‑over‑day volume down about 18%. These observations help frame current liquidity conditions rather than imply any outlook.
Sustained price progress likely requires either materially higher burn throughput or stronger, recurring on‑chain demand that tightens float. Absent those, tokenomics continue to exert a mechanical headwind on rallies.
Can Shiba Inu rise again? What to watch next
Potential catalysts: burn rate, Shibarium activity, liquidity inflows
A persistently higher burn rate would incrementally ease supply pressure if maintained over time. Stronger Shibarium traction, higher TVL, steadier transactions, and more apps leveraging Ethereum interoperability, could signal real utility that supports demand. Improved liquidity from broader market risk‑on phases or new exchange market‑making could also stabilize order books.
Risks and checkpoints: whale flows, sentiment shifts, volatility spikes
Large whale outflows to exchanges can suppress rebounds, while a deterioration in risk appetite can thin liquidity further. As noted by Analytics Insight, cautious whale behavior around support zones underscores fragile confidence. Sudden volatility spikes without higher organic demand may imply short‑lived moves rather than durable trend changes.
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