Recent Developments Show Why The Shiba Inu Price Keeps Crashing

Overview

Shiba Inu’s price has significantly declined over the past year, currently trading at a much lower value compared to earlier this year. Several factors contribute to this persistent decline, including issues related to its Layer-2 network, Shibarium, and waning trader confidence.

Price Decline and Recent Trends

As of early April 2026, Shiba Inu’s value is down approximately 35% on a yearly basis, trading around $0.000006. This marks a notable decrease from the higher range of $0.00000923 that was reached in early January. The meme coin has experienced an extended decline over the past three months, which continued into the recent weekend.

On-Chain Weakness and Shibarium Adoption

The primary factor impacting Shiba Inu’s performance is its own Layer-2 network, Shibarium. Since its launch in August 2023, the price of Shiba Inu has been closely linked to the interest and activity on this network. However, on-chain data indicates a significant drop in user activity and demand on Shibarium, particularly following a major security incident in September 2025. This event marked one of the largest attacks in the network’s history, leading to a drastic reduction in daily transactions.

Before the attack, Shibarium was processing millions of daily transactions; however, this figure plummeted to thousands afterward. Recent data from Shibariumscan shows that daily transactions have now settled at around 1,230, with the lowest recorded figure being just 557 transactions on April 4. It is important to note that Shibarium recently underwent a major infrastructure upgrade, which included a full reindexing of its backend systems. This upgrade may have contributed to the recent slowdown in transaction throughput.

Declining Trader Confidence

The derivatives market reflects a growing lack of confidence in Shiba Inu. Data indicates a noticeable decline in open interest, suggesting that traders are closing their positions and distancing themselves from the asset. As per data from Coinglass, Shiba Inu’s open interest across major exchanges currently stands at $54.25 million, a 16% decline from the previous month’s figure of $65.23 million. This decline is even more stark when compared to the yearly high of $145.40 million recorded in January, representing a substantial 63% drop.

Additionally, there has been an increase in exchange inflows, indicating that a significant amount of Shiba Inu is being moved into trading platforms. This trend is often seen as a precursor to selling pressure. According to CryptoQuant, the net flow of Shiba Inu to exchanges has reached a positive 6.9 billion SHIB in the past 24 hours, meaning that more SHIB is being sent to exchanges than is being withdrawn. Notably, this netflow figure recently peaked at 39 billion SHIB within a single day.

From author

The developments surrounding Shiba Inu highlight the vulnerability of meme coins in the current market environment. The combination of declining on-chain activity, reduced trader engagement, and increased selling pressure paints a concerning picture for the future of Shiba Inu. The structural issues within the meme coin niche further complicate the outlook for recovery.

Impact on the crypto market

• Shiba Inu’s price decline reflects broader challenges faced by meme coins in the current market.
• The reduction in daily transactions on Shibarium raises concerns about the utility and adoption of the Layer-2 network.
• Decreased open interest in Shiba Inu suggests traders are losing confidence, which could lead to further price declines.
• Increased inflows to exchanges indicate potential selling pressure, which may exacerbate existing price challenges.
• Overall, the structural weakness in the meme coin market is evident, with a significant decline in total market capitalization for meme coins.