HBAR Drops Out of Top 20: Shiba Inu Jumps Ahead, Data Reveals Why

HBAR has fallen below $0.11, reaching a key support level that marks a 65% decline since its July 2024 peak according to crypto analysis. The token now ranks outside the top 20 by market capitalization, while Shiba Inu (SHIB) has moved up in the rankings due to growing institutional and retail interest. The total value locked (TVL) in Hedera has plummeted to $61.5 million, from an all-time high of over $205 million.

Shiba Inu's rise reflects broader market dynamics. Dogecoin, which recently secured the first SEC-approved meme coin ETF, has drawn significant institutional attention according to CoinPaper. Shiba Inu, while meeting several eligibility criteria for similar products, has not yet secured a dedicated ETF in the U.S. This distinction has allowed Dogecoin to capture more institutional capital and regulatory confidence. The absence of a standalone U.S. ETF for SHIB has limited its ability to compete directly in the spot market as reported.

The decline in HBAR is not an isolated event but part of a broader market contraction. Hedera's stablecoin supply has dropped 16% in the last seven days to $49 million, significantly lower than that of competing blockchains. The stablecoin market is expanding overall, with the total stablecoin market capitalization exceeding $300 billion.

Why the Move Happened

HBAR's recent price drop is driven by deteriorating network metrics. The total value locked has declined by 7.65% in the last 30 days, reaching its lowest level since November 2024. This decline reflects a lack of investor confidence and reduced on-chain activity. The Hedera team, including co-founder Mance Harmon, has attempted to stabilize the situation by promoting partnerships and attending high-profile events like the World Economic Forum in Davos according to reports.

The token's technical outlook remains bearish. On the daily timeframe chart, HBAR has formed a descending triangle pattern with a key support level at $0.1037. A breakdown below this level could lead to further declines, potentially to $0.08500. The token remains below key moving averages, reinforcing the bearish alignment.

How Markets Reacted

Market participants have shown growing interest in Shiba Inu and Dogecoin, particularly after ETF approvals and regulatory clarity. Dogecoin's 21Shares ETF, TDOG, began trading on Nasdaq and has attracted significant institutional capital. Shiba Inu, despite meeting eligibility requirements, has not seen similar support from U.S. asset managers as CoinPaper reports.

The institutional interest in Dogecoin is further highlighted by its market capitalization of about $21 billion, far ahead of its nearest rival. This gap reflects the impact of regulatory developments on market dynamics. While Shiba Inu launched an exchange-traded product in Europe, U.S. firms have preferred alternatives like PENGU and BONK according to market analysis.

What Analysts Are Watching

Regulatory developments and market structure bills are key factors shaping the crypto landscape. The Senate Agriculture Committee is set to mark up a crypto market structure bill next week, but delays due to weather conditions have raised uncertainty. Democrats are pushing for amendments that include restrictions on government officials profiting from crypto and the filling of the Commodity Futures Trading Commission before new rules can be implemented as the draft indicates.

Market analysts are also monitoring key technical indicators for HBAR and other tokens. For example, Solana (SOL) has shown signs of bearish momentum, with reduced institutional and retail demand and long liquidations exceeding $60 million in the last 24 hours according to FXStreet. The price has remained below key moving averages, suggesting continued downward pressure.

Investors are also watching the broader economic factors affecting the crypto market. The rise of the Japanese Yen and geopolitical tensions have contributed to a risk-off sentiment, reducing inflows into crypto ETFs and derivatives. This environment has led to increased volatility and lower trading volumes in certain segments of the market.

HBAR's recent performance highlights the challenges faced by blockchain platforms in maintaining TVL and stablecoin supply. The token's decline underscores the importance of regulatory clarity, investor confidence, and network utility in the crypto market. As the market continues to evolve, the competition among tokens will remain intense, with regulatory developments and market structure bills playing a critical role in shaping the future landscape.