- Shiba Inu (SHIB) briefly reclaimed $0.000006 before dipping to $0.000005, signaling renewed weakness.
- Shibarium’s Total Value Locked plunged 74% to $31,000, according to DefiLlama data.
- A potential liquidity drain from the crypto market and possible Federal Reserve rate hikes could pressure SHIB further.
- Bitcoin reaching $100,000 by late 2026 or early 2027 might push SHIB above $0.00001.
Shiba Inu (SHIB) ended its lackluster streak earlier this week by briefly reclaiming the $0.000006 price level, only to slide back to $0.000005. The memecoin now faces the risk of another steep correction as key metrics deteriorate.
Shiba Inu’s Shibarium network has seen a 74% drop in Total Value Locked (TVL), falling from over $120,000 to roughly $31,000, according to DefiLlama data. Meanwhile, the broader cryptocurrency market is slowing, with Bitcoin (BTC) dipping to $79,000.
The recent rally was fueled by increased liquidity from the US Treasury’s decision to boost bond buybacks. However, the Treasury will eventually need to refill its coffers, potentially draining liquidity from high-risk assets like Shiba Inu. Additionally, US inflation remains above the Federal Reserve’s 2% target, raising the possibility of interest rate hikes later this year.
Higher rates could substantially hurt SHIB’s price. On a brighter note, analysts from Bernstein and Standard Chartered anticipate Bitcoin reclaiming $100,000 by end of 2026 or early 2027, which could push Shiba Inu back above the $0.00001 mark.
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