- Shiba Inu continues to struggle as weak Shibarium activity and low trading volume limit its recovery potential.
- A broader meme coin rally could be the biggest catalyst for SHIB’s next price move.
Shiba Inu (SHIB) continues to face heavy pressure as weak network activity and fading interest in meme coins weigh on its outlook. Although the project recently gained attention through a partnership that brought physical SHIB collectibles to Japan, on-chain data suggests the SHIB still lacks the adoption needed for a sustained recovery.
While the broader crypto market has shown signs of stability, SHIB remains near its multi-year lows, with many analysts pointing to the overall meme coin sector as the biggest factor determining its next move.
Shibarium Activity Remains Low
Shibarium was created to give Shiba Inu more real-world utility by enabling faster, cheaper transactions. However, recent network data shows that adoption remains limited.
The Layer-2 network is currently processing only about 775 transactions per day. That figure appears small compared to more than 269 million lifetime wallet addresses and over 1.5 billion total transactions recorded since launch.
The difference between historical totals and current daily activity highlights the project’s biggest challenge. A large number of registered wallets does not necessarily translate into active users or growing demand.
Token burns also continue to have little impact. Even during periods of increased burning, only a tiny fraction of SHIB’s circulating supply of roughly 589 trillion coins is removed. As a result, the deflation strategy has done little to improve market sentiment.
Some community members have also questioned recent wallet growth, suggesting that automatically generated contract addresses may be inflating holder numbers rather than reflecting genuine adoption.
SHIB Still Depends on the Meme Coin Market
Shiba Inu’s recent performance closely matches the broader decline across the meme coin sector.
The GMCI Meme Index, which tracks leading meme cryptocurrencies, climbed to around 160 in January before falling to roughly 66 by late July. SHIB followed a similar path during the same period, showing that its price continues to move alongside the wider meme market.
This suggests that project-specific developments alone may not be enough to trigger a major recovery.
Previous rallies have shown that strong gains across meme coins can quickly lift SHIB. Earlier this year, a sharp rise in Dogecoin helped push several dog-themed cryptocurrencies higher.
For now, however, overall market conditions remain cautious. The Altcoin Season Index sits near the middle of its range, indicating that investors have not yet rotated heavily into higher-risk digital assets.
Key Price Levels to Watch
SHIB is currently trading around $0.0000041, remaining inside a narrow trading range near its multi-year low.
The first major resistance level sits near $0.0000055, while a second resistance zone is located around $0.0000065. A move above the first level would represent a gain of roughly 30%, while reaching the second would require an increase of about 55%.
Technical indicators do not yet point to a strong breakout. The Relative Strength Index (RSI) remains near 40, suggesting neither oversold nor bullish conditions. Trading volume has also declined throughout July, reflecting limited buying interest.
Recovery May Depend on Renewed Hype
Rakuten’s decision to offer official Shiba Inu collectibles in Japan may improve brand visibility, but it is unlikely to change the cryptocurrency’s fundamentals on its own.
Instead, SHIB’s next significant move may depend on renewed enthusiasm across the entire meme coin sector. If investor appetite for meme cryptocurrencies returns, SHIB could benefit alongside its peers.
Until then, weak Shibarium activity, minimal burn impact, and soft trading volume suggest the cryptocurrency could continue moving sideways rather than begin a strong recovery.
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