
Shibarium TVL has collapsed over 99%, falling to approximately $130,000 amid declining network activity.
SHIB has dropped 21% monthly, with critical support near $0.00000407.
A breakdown below support could expose SHIB to further losses toward $0.00000348.
SHIB holders are staring at yet another difficult month as selling pressure intensifies. The meme coin has surrendered nearly 20% of its value. Meanwhile, declining activity across Shibarium raises fresh concerns about long-term demand. The layer-2 network has lost approximately 99% of its previously locked value. With SHIB approaching yearly lows, investors face an important question. Can buyers prevent another damaging breakdown?
https://twitter.com/MichealResearch/status/2119023485737394354?a=Snn6Dm0taZoczxypuEM&s=19 Shibarium TVL Collapse Raises Fresh Concerns for SHIB
Shibarium was designed to strengthen the Shiba Inu ecosystem. The layer-2 network aimed to increase utility and attract decentralized finance activity. Its developers hoped greater adoption would create demand for SHIB-related applications. However, recent figures suggest the network has struggled to maintain momentum. According to DefiLlama data cited by CryptoTicker, Shibarium held approximately $130,000 in total value locked last week. That represents a decline exceeding 99% from the network's late-2024 peak. Such a dramatic reduction points to a substantial loss of capital.
A costly bridge attack last September contributed to the deterioration. The exploit drained millions of dollars in ETH and SHIB. The incident also temporarily disrupted staking activity. Security concerns and reduced confidence may have discouraged users from returning. The decline also raises questions about Shibarium's ability to support broader ecosystem growth. Lower TVL can limit liquidity across decentralized applications. It may also weaken incentives for developers and users. Without renewed participation, the network could struggle to rebuild its position.
Token burns currently offer limited support for the struggling ecosystem. Weekly burns reportedly generated only a few hundred dollars. That amount provides little meaningful pressure on SHIB's circulating supply. Consequently, scarcity narratives may struggle to influence demand. SHIB therefore depends heavily on market sentiment and renewed investor interest. However, enthusiasm surrounding meme coins has weakened considerably. Stronger network activity could help restore confidence. Until then, the token faces a difficult recovery path.
Can Buyers Defend Yearly Support?
SHIB currently trades near $0.00000454 following another difficult month. The token has dropped approximately 21% over the past month. This decline leaves buyers approaching a critical support region. The nearest significant support sits around $0.00000407. This level stands slightly above the token's yearly low. Buyers must defend this region to prevent another breakdown.
A sustained hold could provide a foundation for short-term stabilization. However, resistance around $0.00000565 remains an important recovery target. SHIB needs to reclaim this level to strengthen bullish expectations. A successful breakout could improve confidence among sidelined investors. It would also suggest buyers are regaining control.
Technical conditions currently favor sellers rather than buyers. Persistent weakness suggests bearish momentum remains firmly established. Therefore, another decline remains possible without stronger buying pressure. A decisive breakdown below $0.00000407 could expose lower price levels. The next potential downside target stands near $0.00000348. Such a move would extend the token's ongoing losses.
