Ethereum Updates: SHIB Burn Rate Soars While Ecosystem Remains Static—Will the Blaze Boost Its Worth?

SHIB Price Encounters Structural Challenges Despite Soaring Burn Rate, Experts Divided on Breakout Prospects

Shiba Inu (SHIB) is currently walking a fine line between encouraging on-chain signals and underlying issues that raise questions about its future sustainability. Although a staggering 26,493% increase in token burns has fueled short-term bullishness, persistent problems such as limited ecosystem utility and a consistently low Total Value Locked (TVL) on its layer-2 network continue to hinder substantial price growth, as highlighted in a

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Recent price movements have put SHIB in the spotlight as it consolidates within a significant demand area, with traders observing accumulation trends that have historically led to breakouts, according to Benzinga. EtherNasyonal, a well-known crypto trader, pointed out SHIB's "record-low momentum" as a possible precursor to a price surge, while

Knight underscored its status as the top coin on . Still, these technical perspectives are at odds with on-chain figures that show Shibarium's TVL remains under $1 million, as reported by a .

The gap between the rate of token burns and actual ecosystem expansion has become a central topic among analysts. Shibburn data shows SHIB’s burn rate has reached extraordinary heights, with more than 7.7 million tokens destroyed in just 24 hours. This sharp deflation, largely driven by major transactions, has increased scarcity and briefly boosted market sentiment. Nevertheless, experts warn that such deflationary actions alone cannot compensate for the token’s core shortcomings. “Given SHIB’s massive circulating supply, the current ecosystem does not generate enough deflationary pressure,” one analyst commented, referencing the 589 trillion tokens in circulation, a concern also noted by Yahoo Finance.

SHIB’s main structural issues arise from its dependence on Shibarium, a layer-2 platform intended to enhance token utility through decentralized applications (dApps). Despite lofty ambitions, the platform’s TVL has stayed below $1 million since early October, far short of its potential. This lackluster performance has led some to call SHIB’s $0.0001 price goal “an unattainable target,” given the disconnect between its deflationary tactics and real-world adoption, as outlined by Yahoo Finance. Meanwhile, investment is increasingly shifting toward sectors with practical uses, such as AI compute and DePIN, pushing meme coins further to the margins of the crypto market.

Opinions remain split regarding SHIB’s short-term direction. On one side, the dramatic increase in burns and Ethereum’s upward momentum have provided a boost for SHIB, with some analysts drawing comparisons to past cycles where ETH’s record highs coincided with meme coin rallies, a pattern previously discussed by Benzinga. On the other side, the ongoing lack of TVL growth and the token’s reputation as a “meme coin” continue to pose significant obstacles. “SHIB is falling behind projects that deliver tangible value,” one industry watcher remarked, noting the broader Web3 trend favoring utility over speculation.

The next few months will reveal whether SHIB can turn its deflationary surge into lasting ecosystem development. Although the recent spike in burn rate has sparked short-term hope, analysts emphasize that without notable progress in Shibarium’s TVL and dApp engagement, the token will remain fundamentally constrained. For now, traders are monitoring the $0.00001042 level, where a strong breakout could attract new capital—but also carries the risk of a rapid pullback if underlying fundamentals do not improve, as suggested by Yahoo Finance and earlier Benzinga reports.

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