The layer-2 network Shibarium, launched to support the Shiba Inu token, has seen sharply declining transaction activity and has burned far fewer tokens than initially anticipated by its community. Concurrently, the number of SHIB token holders has stagnated at around 1.5 million for 18 months, indicating a lack of new investment. With the token’s price near $0.0000054 and broader market investments shifting toward sectors like AI, the network’s struggle to gain traction poses significant challenges for the meme coin’s ecosystem.
The Shiba Inu layer-2 solution Shibarium was marketed as a network that could burn SHIB tokens and rescue the asset from its price slump. Network activity has failed to gather steam, however, and transactions have seen a sharp decline.
From its launch in August 2023 to June 2026, Shibarium has burned just over 1 billion tokens. This falls drastically short of initial community assessments that the network could send trillions of tokens to the dead wallet.
The stagnation extends beyond the network’s utility. According to data from Etherscan, the number of SHIB token holders has remained at approximately 1.5 million for 18 months. This plateau suggests an absence of new and first-time investors in the asset.
The dog-themed token is currently trading near the $0.0000054 level. It has been on a continuous decline for nearly two years.
Broader market trends are also cited as a concern, with investment capital that once flowed into meme currencies now moving into the AI sector. Even investment giant BlackRock has reportedly expressed worry that investments in Bitcoin could tank as funds shift toward AI technology firms.
This shift could potentially trigger significant outflows from institutional funds. Such a scenario might drive Bitcoin well below the $50,000 level. A broader market downturn would likely also affect other major cryptocurrencies, including Ethereum, XRP, ADA, and Shiba Inu.
