Shiba Inu's (SHIB) layer-2 solution, Shibarium, is grappling with a significant utility deficit as its Total Value Locked (TVL) remains below $1 million since early October. This stagnation underscores the token's struggle to gain traction in terms of ecosystem utility and adoption. Despite a substantial 42,000% increase in token burns, the lack of meaningful network activity suggests that development efforts have not effectively translated into user engagement.
Analysts point to SHIB's massive circulating supply and slow deflationary mechanism as critical structural issues. As capital flows increasingly favor utility-driven sectors like AI compute and DePIN, Shiba Inu faces challenges in overcoming its 'meme coin' reputation and achieving sustainable growth.
Shibarium's TVL Stagnation Highlights Shiba Inu's Utility Challenges
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