Shiba Inu (SHIB) is facing growing downward pressure as investor sentiment weakens and on-chain activity across its Shibarium ecosystem continues to decline.
The popular memecoin has fallen sharply from its yearly high, mirroring broader losses among top meme-based tokens.
At the time of writing, SHIB trades at $0.00001038, a significant drop from its 2024 peak of $0.00001765 and well below last November’s high of $0.0000334. The decline represents a steep retracement that has wiped out most of the token’s year-to-date gains.
The price crash isn’t isolated to Shiba Inu alone. Memecoins across Ethereum and Solana have also recorded heavy losses. The market cap of Solana-based meme tokens has plunged from around $22 billion in January 2025 to about $7 billion as of October 2025.
SHIB Price decline linked to Shibarium’s struggles
One major driver of Shiba Inu’s recent decline is the poor performance of Shibarium, the project’s Layer-2 scaling network built to enhance SHIB’s utility and accelerate token burns.
In theory, Shibarium’s model was designed to process transactions using Bone Shibaswap (BONE) tokens, which are later converted to SHIB and burned to reduce total supply.
However, that vision appears to be faltering. Data shows that Shibarium’s total value locked (TVL) has dropped below $1 million, marking a sharp decline from earlier this year. The situation worsened following the recent ShibaSwap hack, which eroded trust and triggered a massive exodus of users.
According to ShibariumStat, the network recorded only 101 active accounts on October 27, with just one new user joining the platform that day. Data further shows that Shibarium generated a mere 0.45 BONE in fees which is roughly $0.05 in revenue on the same day.
This collapse in network activity signals that Shibarium is struggling to gain traction in the crowded L2 market, where competitors like Arbitrum, Base, and Optimism continue to dominate.
Shiba Inu Price Analysis
Technically, Shiba Inu price has extended its downtrend after breaking below key support zones. The token remains under pressure as it trades beneath both the 50-day and 200-day Exponential Moving Averages (EMAs).
This is a bearish signal that typically confirms the dominance of sellers. On the daily chart, SHIB also sits below its Supertrend indicator, while the Relative Strength Index (RSI) continues to decline, showing no signs of an imminent rebound.
If the bearish momentum persists, SHIB would likely retest the year-to-date low of $0.000006957. However, a move above the $0.00001163 resistance could temporarily invalidate this forecast and provide a path toward recovery.
The decline in Shibarium’s adoption raises larger questions about Shiba Inu’s long-term utility and investor confidence.
Unless the Shiba Inu team revives developer engagement, scales decentralized applications (dApp) integration, and restores community trust, SHIB may continue to struggle against both technical and fundamental headwinds.
