The layer-2 solution Shibarium was touted to save Shiba Inu from a price slump, but the network is already facing low activity. Traders initiating transactions on the network have seen a sharp decline, as SHIB’s price plummets in the charts. The dog-themed token is trading at the $0.0000054 level and has been on the red side of the aisle for nearly two years straight.
Shiba Inu’s Shibarium was marketed during launch as a network that can burn SHIB tokens. From the day of its release in August 2023 to June 2026, the network has burned only 1 billion+ tokens. The initial assessment among the community members was that Shibarium could send trillions of tokens to the dead wallet. None of that turned into reality, as network activity failed to gather steam.
Not just Shibarium, the number of SHIB token holders has also been stagnating for a while. The number has been more or less 1.5 million for 18 months, and has not gone above the level. This shows that new and first-time investors are mostly absent in Shiba Inu. The development is proving to be costly for the dog-themed token, as investments have dried up.
Also Read: Shiba Inu, Dogecoin, and Pepe Down 90% From All-Time Highs
Can Shiba Inu Rebound
A quick rebound for Shiba Inu at the time point looks impossible, as traders are focusing on utilities. The money that was being routed into meme currencies a few years ago is now being moved into the AI sector. Even BlackRock is worried that investments in Bitcoin could tank, as investments are going towards firms that are building AI technology. This is a cause of worry, as BlackRock is a trillion-dollar management firm.
If the investment bank sees a dip in Bitcoin’s prospects, billions from the institutional funds could be affected through outflows. If a situation like this arises, Bitcoin could fall well below the $50,000 level. Not just BTC, Ethereum, XRP, ADA, and Shiba Inu, among others, could bleed profusely in the charts.