The Shiba Inu token (SHIB) has seen sluggish performance recently, with investors shifting their attention to disappointing metrics from its layer-2 blockchain, Shibarium. As of Friday, SHIB was trading at $0.00001885, showing little movement over the past few days despite broader market activity.
While the token is up 12% over the past week, it has underperformed several other meme coins like Dogecoin (DOGE), Floki (FLOKI), Brett, and Cat in a Dog’s World, which have surged by over 20%. Additionally, meme tokens such as Turbo, SPX6900, and Book of Meme soared by more than 40%, putting pressure on SHIB’s market momentum.
Shibarium’s Weak Metrics Weigh on SHIB Performance
Despite recent market gains, SHIB’s weak trading volume and lackluster Shibarium metrics have raised concerns. CoinGecko data shows SHIB’s 24-hour trading volume was $771 million, lagging behind competitors like Dogecoin ($1.9 billion) and Pepe ($1.78 billion). Even Dogwifhat, a Solana-based meme coin, surpassed SHIB with $837 million in volume.
The sluggish performance of Shibarium has been a key factor in SHIB’s underwhelming price action. According to Shibariumscan, the number of active accounts on the network has dropped to a record-low 156, down significantly from nearly 4,000 in August. Meanwhile, the number of total accounts has stalled at 126,000, and transaction activity on the network has declined sharply.
This decline in Shibarium activity has also impacted the SHIB burn rate, as fees collected from transactions are converted to SHIB and burned to reduce the circulating supply. In the last 24 hours, just 2,502 SHIB tokens were burned—a 72% drop from the previous day, according to Shibburn.
A Glimmer of Hope in TVL Rebound
Amid these challenges, there is a silver lining: Shibarium’s total value locked (TVL) has recovered slightly. The TVL climbed to $3.65 million this week, bouncing back from its August low of $1.2 million. However, the network’s TVL remains far below that of competitors like Base and Arbitrum, which continue to dominate the layer-2 space.
On the technical front, the SHIB token appears to have found support at $0.00001278, forming a triple-bottom pattern on the daily chart. It is now trading between the 78.2% and 61.8% Fibonacci retracement levels, a zone typically associated with consolidation before a potential breakout.
Encouragingly, SHIB has crossed above both its 50-day and 200-day moving averages, with these two lines nearing a golden cross formation—a bullish signal that occurs when the 50-day MA moves above the 200-day MA. The last time SHIB formed a golden cross was in December, which triggered a strong rally.
If the golden cross materializes, SHIB could target $0.00002165, the high it reached on September 28, representing a 15.7% gain from current levels.
Also Read: Shiba Inu Soars – Bulls Accumulate 2.95 Trillion SHIB Worth $53M In One Day!
Can Shiba Inu Regain Momentum?
While Shibarium’s weak metrics have cast a shadow over Shiba Inu’s recent performance, technical indicators hint at a possible recovery. If the golden cross materializes and investor sentiment improves, SHIB could stage a rally similar to past breakouts. However, with trading volume still trailing competitors and Shibarium activity lagging, SHIB must overcome significant headwinds to reclaim its spot among the top-performing meme coins.
Investors will be closely watching whether Shibarium’s activity rebounds in the coming days—and whether SHIB can break past resistance levels to regain lost ground.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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