Shibarium – Shiba Inu’s layer-2 scaling solution – has finally shown signs of revival, perhaps sparking hopes among the SHIB Army that the price could respond to the momentum.

Nonetheless, many other factors suggest that the self-proclaimed Dogecoin killer is not out of the woods yet and could experience an additional short-term decline.

Mixed Signals, But Bears Prevail

Shibarium officially saw the light of day in the summer of 2023 and was designed to advance the Shiba Inu ecosystem by lowering transaction costs, improving speed, and enhancing scalability. At first, the protocol processed millions of daily transactions, but an exploit in 2025 abruptly changed things for the worse.

The figure dropped to mere hundreds, signaling waning user engagement and slow network participation. Data shows that there has finally been some improvement on that front, with daily transactions topping almost 4,500 on August 9, the highest level since July 10.

Some popular voices from the crypto world have opined over the years that Shibarium’s progress is vital for the meme coin’s performance. One example is the early Bitcoin advocate Jeremie Davinci, who said in 2025:

“I like Shiba Inu, as you know, and I think it will do relatively well in this cycle, but it may not go as high as you expect. I think Shiba Inu has a lot of utility now that they have Shibarium, and basically, it’s a chain that you can actually run all kinds of applications. However, nobody is using it, and there are no applications for using your tokens on Shibarium yet. If they get that solved, Shiba Inu will go to the moon.”

It is important to note that Shibarium’s recent resurgence is far from what the community hopes to see, meaning a strong price reaction is more likely if activity returns to previous levels and breaks past them.

Meanwhile, other elements suggest that SHIB could head south soon. The amount of coins stored on exchanges has risen to around 87.5 trillion: the highest since the end of June. This suggests that investors have been flocking from self-custody methods toward centralized platforms, thereby increasing immediate selling pressure.

Next on the list is Shiba Inu’s burn rate, which has fallen by 75% over the past week. The program’s ultimate goal is to reduce the token’s circulating supply, thus making the price more valuable through scarcity. However, the team and community will have to up their game in that field to cause a meaningful ascent.

SHIB Price Outlook and Predictions

As of this writing, the meme coin trades at around $0.000004654, translating into a 20% plunge from the local top reached last month when a certain whale resumed accumulating after months of inactivity.

According to X user Kamran Asghar, SHIB is compressing within a descending wedge at key demand around $0.00000455-$0.00000465. They believe a breakout above the range near $0.00000475 would confirm a bullish reversal toward $0.00000520+.

Source: CryptoPotato