Why Shiba Inu Is Losing Long-Term Momentum Amid Slower Burns

  • Shiba Inu drops from 24th to 26th in crypto rankings amid persistent weakness.
  • Token burn rate plunged 89.96% with only 1.09 million SHIB burned in 24 hours.
  • Multiple ecosystem projects including metaverse and marketplace remain incomplete.

Shiba Inu faces mounting challenges that undermine its positioning as a long-term investment option. The meme token recently fell from 24th to 26th in global cryptocurrency rankings after Canton and Uniswap overtook it with market capitalizations of $4.83 billion and $4.59 billion respectively.

SHIB currently trades at $0.000007502, posting gains of 2.3% over 24 hours and 2.6% across the past week. The token rebounded from last week’s low below $0.000007 to the $0.0000075 range before suffering a fresh setback over the weekend. A wider timeframe reveals continued weakness, with SHIB down 12.4% over 30 days and 64.5% year-to-date.

Token burn campaign loses effectiveness

Shiba Inu launched in 2020 with an initial supply of 1 quadrillion tokens. Developers and community members have implemented burns to reduce supply, but SHIB still maintains a circulating supply of approximately 589.24 trillion tokens. The burn campaign, once viewed as a key driver for price appreciation, has lost steam.

Community burn tracker Shibburn previously reported billions of tokens burned daily. Current burn activity has dropped sharply, with only small amounts sent to dead wallets.

Data from Shibburn shows the burn rate plunged 89.96% over the past 24 hours, with just 1.09 million tokens burned during that period. The likelihood of reducing supply enough to support sustained price gains remains low.

Ecosystem projects fail to deliver promised utility

The team launched Shibarium in August 2023 as Shiba Inu’s Layer-2 network, positioning it as a platform for developers building utility-driven projects. The expansion was expected to increase visibility for SHIB and other ecosystem tokens while accelerating adoption.

Outcomes have fallen short of expectations. A handful of projects launched on Shibarium but have not achieved meaningful adoption or attracted wider market attention. SHIB and sister tokens BONE, LEASH, and TREAT have seen limited benefits from the network’s deployment.

The Shiba Inu team announced multiple initiatives including games, a metaverse, and blockchain infrastructure as part of efforts to evolve from meme coin to utility-driven ecosystem. While Shibarium and decentralized exchange ShibaSwap launched successfully, several flagship projects remain incomplete.

The promise to deliver SHIB: The Metaverse and the SHIB Marketplace by 2024 has not been fulfilled. No meaningful updates have surfaced regarding the proposed Layer-3 privacy blockchain expected to debut last year.

These repeated delays have weakened investor confidence and made it harder for SHIB to be viewed as a serious long-term project.

Source: https://thenewscrypto.com/why-shiba-inu-is-losing-long-term-momentum-amid-slower-burns/