As we approach the end of 2025, Shiba Inu (SHIB), a popular memecoin, has encountered significant market challenges, trading 70% below its peak in December. This downturn has notably reduced its market capitalization to approximately $6.9 billion, indicating a volatile period for investors and enthusiasts alike 
Current Market Conditions for Shiba Inu
The recent increase in SHIB tokens listed on exchanges underscores a growing trend of investor liquidation. From 275 trillion tokens at the beginning of the week, the count has escalated to 276 trillion. This uptick suggests a shift towards selling among holders, including prominent whales who now possess around 91.96 billion SHIB, a stark increase from 213 billion earlier in the week.
Impact of Whale Transactions
Whale activities often lead to significant price movements in the cryptocurrency market. The substantial holdings by these large investors can lead to increased volatility as their trading decisions can sway the market direction. For SHIB, the recent accumulation and potential sell-off by whales could further pressure the price downward.
Technical Analysis and Future Outlook
Technically, SHIB has formed a descending triangle pattern over the year, indicating a continuation of the downward trend. The pattern’s support line was last at $0.00001052, with resistance forming from the highest price points since February. After confirming this pattern during the recent cryptocurrency market crash, SHIB has shown a breakout and retest pattern, hinting that the price may revisit lower levels, potentially around $0.0000060.
Decreased Shibarium Network Activity
Another concerning factor for Shiba Inu is the decreased activity on its Shibarium network. The total value locked (TVL) on the platform has halved over the past month, now standing at just $865,000. This decline was exacerbated by the recent ShibaSwap hack, which has likely eroded trust among participants. Additionally, the rate of token burning has slowed, with only 571,347 SHIB burned recently, signaling reduced network utilization and profitability issues.
Market Insights and Strategic Considerations
Looking forward to 2026, the landscape for memecoins like Shiba Inu appears increasingly challenging. Investors and users of the Shibarium network may need to reassess their strategies, considering both market trends and intrinsic network activities. The potential for regulatory changes, broader market dynamics, and technological advancements will also play critical roles in shaping the trajectory of SHIB and similar cryptocurrencies.
For those holding or considering an investment in SHIB, it’s crucial to stay informed about both macroeconomic factors and specific developments within the Shiba Inu ecosystem. Monitoring whale activities, network health, and market sentiment will be key to navigating the uncertainties of the memecoin market as we move into the next year.
As the cryptocurrency landscape continues to evolve, staying agile and informed will be vital for anyone engaged in this dynamic market. The case of Shiba Inu in 2025 serves as a reminder of the rapid changes and volatility inherent in crypto investments.
Disclaimer: This post is a compilation of publicly available information.
MEXC does not verify or guarantee the accuracy of third-party content.
Readers should conduct their own research before making any investment or participation decisions.
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