Shiba Inu (SHIB) is feeling the weight of a broad cryptocurrency market slump. The token’s value has slid from its November high of $0.000033 to a current $0.000020. As Shibarium, its layer-2 network, progresses toward a major milestone, the question on investors’ minds is whether SHIB will rebound or continue its descent.
Shibarium’s Rapid Growth in Transactions
Despite SHIB’s price struggles, Shibarium is making steady progress. According to ShibariumScan, the network has processed nearly 788 million transactions, inching closer to the 800 million mark. These figures underscore the network’s growing adoption since its inception.
Shibarium handled approximately 4.7 million transactions, generating 644 BONE tokens in fees. This translates to an average transaction fee of $0.000057, reflecting its efficiency and affordability. Interestingly, the average fee has dropped from 0.0004 BONE in December to 0.000057 today, a noteworthy trend that indicates declining user costs.
BONE, a key player in Shibarium’s fee structure, also contributes to SHIB’s token-burning mechanism, adding another layer of utility. However, falling fees mean fewer BONE tokens are burned, potentially impacting the broader ecosystem.
Shibarium’s Declining Total Value Locked (TVL)
While transaction volumes have grown, Shibarium’s decentralized finance (DeFi) ecosystem has seen a decline in its Total Value Locked (TVL). From a peak of $6.27 million in November 2024, the TVL has dropped to $3.36 million as of now.
The decline is mirrored across Shibarium’s key DeFi applications:
- ShibaSwap: Down more than 20% in assets over the past month.
- WoofSwap: Facing a similar decrease.
- ChewySwap: Also witnessing reduced activity.
These declines suggest a broader disengagement with Shibarium’s DeFi offerings, potentially influenced by the overall crypto market downturn.
Crypto Market Pressures Mount
Shiba Inu’s price dip aligns with a general sell-off in the cryptocurrency market. Bitcoin briefly dipped below the $90,000 mark, while the crypto fear and greed index dropped from a bullish 90 last year to a neutral 47. This shift highlights growing caution among investors, exacerbating challenges for tokens like SHIB.
Shiba Inu Price Forecast: What’s Next?
The technical indicators for SHIB suggest a bearish outlook:
- Bearish Flag Pattern: SHIB has formed a bearish flag on the daily chart, signaling a potential continuation of its downward trend. This pattern, characterized by a steep decline followed by a consolidation rectangle, is often a precursor to further drops.
- Head-and-Shoulders Formation: A small head-and-shoulders pattern has also emerged, another classic bearish indicator.
Key Levels to Watch:
- Downside Target: The 78.6% Fibonacci retracement level at $0.00001560 could be the next support point if selling pressure continues.
- Upside Potential: A rebound could see SHIB retest the flag’s upper boundary at $0.000024, but this would require a significant shift in market sentiment.
Summary of Shiba Inu’s Current Standing:
| Metric | Value |
|---|---|
| Current Price | $0.000020 |
| November High | $0.000033 |
| Transaction Milestone | ~788 million transactions |
| Average Transaction Fee | $0.000057 |
| Shibarium TVL | $3.36 million |
Shiba Inu’s price action remains tightly linked to broader market trends and Shibarium’s performance. While the growing transaction count is a bright spot, declining TVL and bearish technical patterns add weight to the token’s challenges. As always, investors should proceed cautiously, keeping an eye on both market signals and SHIB-specific developments.
