Shiba Inu (SHIB) traded mostly flat on Thursday, struggling with weak momentum and ongoing selling pressure that has kept the token in a prolonged downtrend.
Notably, over the past week, the world’s largest meme token declined by nearly 3% amid broader market conditions, and is down about 95% from its all-time high, extending a longer trend of underperformance.
However, the token’s performance has also highlighted growing concerns among holders, many of whom have watched optimism surrounding the ecosystem gradually fade. Community morale has weakened considerably compared to previous market cycles, with investors still waiting for renewed momentum from the project’s leadership.
Shiba Inu’s pseudonymous lead developer, Shytoshi Kusama, has maintained a relatively low profile in recent months, having previously outlined long-term ecosystem expansion plans centered on Shibarium and broader Web3 development.
Meanwhile, one of the biggest concerns for the ecosystem has been the noticeable decline in activity on Shibarium, Shiba Inu’s Layer-2 blockchain.
 
While the network has processed more than 1.56 billion transactions since its launch and attracted nearly 270 million wallet addresses, recent usage figures paint a different picture.
Daily transactions have fallen to roughly 1,100, a very large drop from the network’s peak, when it regularly processed more than 4 million transactions per day. The slowdown suggests significantly lower on-chain participation and reduced engagement from users who once viewed Shibarium as a major growth engine for the SHIB ecosystem.
According to the SHIB burn tracker, more than 410 trillion tokens have been permanently burned, representing approximately 41% of the total supply since SHIB’s launch. Based on Shibarium-related activity, approximately 1.15 billion SHIB tokens have been burned, falling far short of expectations set during the network’s launch period.
Additionally, recent burn activity has also remained subdued, with just over 2 million SHIB burned during the past 24 hours. While token burns continue to reduce supply over time, current volumes remain too small to significantly influence SHIB’s circulating supply or price dynamics.
Nevertheless, some analysts remain optimistic about SHIB’s long-term outlook despite the sluggish ecosystem activity.
According to CryptoQuant data, Shiba Inu has climbed back into the top 30 cryptocurrencies by market capitalization as exchange reserves continue to decline.
Late last month, nearly 781 billion SHIB were withdrawn from cryptocurrency exchanges, with exchange balances falling to approximately 87.18 trillion tokens.
The continued reduction in exchange reserves has fueled speculation that whales are quietly accumulating during the current consolidation period.
That said, while several market analysts remain optimistic that SHIB could benefit from a broader crypto market recovery, the token continues to lack a clear catalyst to reignite sustained buying interest.
At press time, SHIB was trading at $0.000004310, reflecting a 2.17% gain in the past 24 hours.
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