A 65% yearly decline meets weaker attention
Shiba Inu’s market performance has slipped from “major meme” to “shrinking meme,” with CryptoPotato citing CoinGecko data showing SHIB at about $0.000004697. That price level reflects a 65% decline over the past year.
The longer-term picture looks worse. CryptoPotato says SHIB is down nearly 95% from its all-time high hit at the end of 2021. For a token that once ranked as the second-largest meme coin behind Dogecoin (DOGE), the desk problem is not just price. The ecosystem’s funding story depends on buyers sticking around.
And the participation signals are deteriorating. CryptoPotato reports trading volume has fallen by 84% over the last 12 months, alongside a broad drop in interest in meme coins. In practical terms, lower volume often means thinner order books and less conviction. That doesn’t “prove” a crash is guaranteed. It does mean fewer people are showing up when volatility hits.
Burn rate collapse cuts one of SHIB’s few levers
SHIB’s scarcity narrative runs through its token burn mechanism. CryptoPotato flags that burn rate has fallen by 71% over the past week, after the program’s goal of reducing supply and increasing value via scarcity.
The supply still has a long runway. CryptoPotato says the team and community have burned more than 40% of the supply since the program launched, yet nearly 590 trillion tokens remain in circulation. A burn program can help on paper, but the impact depends on sustained burn activity.
A falling burn rate also changes what the community can plausibly sell to new entrants. If burns slow down, the “scarcity is working” pitch gets harder to sustain.
Shibarium’s stalled activity adds execution risk
Layer 2 is supposed to make the Shiba Inu stack usable, not just collectible. CryptoPotato points to Shibarium, the project’s scaling solution launched in summer 2023 to improve speed, scalability, and transaction fees.
Early usage looked promising, with millions of daily transactions. Then an exploit hit last year. Since then, CryptoPotato reports Shibarium’s transaction figures have “drastically declined,” citing Shibariumscan.io.
This matters because L2 traction is one of the few paths from meme-branding to real demand. When activity stalls, the token capture mechanism gets weaker. Even if the chain keeps working, fewer users means fewer reasons to hold the related asset.
What RSI is saying, and what it isn’t
CryptoPotato’s technical read offers a counterweight to the fundamental drag. The outlet cites SHIB’s Relative Strength Index (RSI) being below 30, which it describes as a potential sign the price has fallen too much in a short period and could be due for a short-term rebound.
The mechanics are straightforward. CryptoPotato notes RSI ranges from 0 to 100. It also says readings above 70 suggest overbought conditions and a possible pullback.
But RSI is a timing tool, not a thesis. It can flag that selling pressure may be exhausted. It cannot repair burn-rate declines, reverse reduced volume, or undo an exploit’s reputational aftertaste.
Key metrics in the current SHIB slowdown
| Metric | Latest signal cited by CryptoPotato | Source named in the article |
|---|---|---|
| Price | ~$0.000004697 | CoinGecko |
| Decline over 12 months | -65% | CoinGecko |
| Decline from all-time high | ~-95% | CoinGecko (context) |
| Trading volume change | -84% over 12 months | CryptoPotato report |
| Burn rate change | -71% over the past week | Shibburn.com |
| Tokens still in circulation | ~590 trillion | CryptoPotato report |
| Shibarium activity | Drastically declined after an exploit | Shibariumscan.io |
| RSI level | Below 30 | CryptoWaves |
Dead weight or bounce setup?
CryptoPotato’s bottom line is that SHIB is surrounded by soft participation signals, a weaker scarcity lever, and a scaling layer that never regained stable momentum after an exploit.
At the same time, the RSI reading below 30 gives traders a plausible reason to expect short-term stabilization. That’s not the same as recovery. It’s a possible pause after pressure.
For SHIB holders, the real question is whether the next period brings back participation and execution, not whether a chart indicator briefly comforts the market.