Hyperliquid News Today: Japan's Green Light and Institutional Hype Power SHIB's Rally

Whales and institutional investors are increasingly betting on Shiba Inu (SHIB) as on-chain activity and ecosystem developments suggest a potential rally. The token's total value locked (TVL) in the Shibarium layer-2 network surged 137% in recent weeks, signaling growing utility and investor confidence. This momentum coincides with a sharp increase in token burns, regulatory clarity in Japan, and technical indicators hinting at a short-term rebound.

The burn rate for SHIB has accelerated dramatically, with over 831 million tokens destroyed in the past week alone. This aggressive supply reduction, driven by community participation, has tightened liquidity and created a supply-shock narrative that aligns with improving market sentiment. Analysts note that such activity often precedes volatility-driven price recoveries, especially when combined with strong fundamentals.

Japan's recent addition of SHIB to its Green List-a regulatory fast-track for crypto exchanges-has further bolstered the token's credibility. The move positions SHIB alongside Bitcoin and Ethereum in terms of compliance, while Japan's proposed 20% flat tax for approved digital assets reduces transaction burdens for traders. This regulatory clarity has attracted institutional interest, with T. Rowe Price and Grayscale reportedly integrating SHIB into multi-coin funds according to reports.

Shibarium's TVL growth is another critical catalyst. The layer-2 network, which supports decentralized finance (DeFi) applications like ShibaSwap, saw a 70% spike in transactions and a 137% TVL increase. This surge reflects growing adoption and utility, as developers expand features and users migrate to the platform according to data. Analysts argue that Shibarium's success could drive long-term value for SHIB by creating a self-sustaining ecosystem.

Technical indicators also suggest a potential rebound. SHIB recently stabilized above the $0.0000088 support level, with buyers defending the region and forming a controlled upward drift toward $0.00001029. On-chain metrics like falling exchange reserves and a buy-dominant Taker Volume Delta (CVD) indicate reduced selling pressure and accumulating interest according to analysis. However, bearish risks persist, as the token remains below key moving averages and faces resistance at $0.00000953 according to traders.

Despite these mixed signals, the Shiba Inu community remains optimistic. With over 1.5 million token holders and a growing ecosystem, the project's decentralized governance and utility-driven upgrades are seen as long-term strengths according to analysis. Traders Union analyst Viktoras Karapetjanc noted that "improving fundamentals and community engagement could support future resilience," even if short-term volatility continues according to reports.

The coming weeks will be pivotal. If SHIB breaks above $0.00000953 and holds key support levels, bulls could target $0.00001118-a previous rejection zone-while a drop below $0.00000879 may reignite bearish momentum according to market analysis. For now, the combination of supply-side tailwinds, regulatory progress, and ecosystem growth has positioned SHIB as a high-potential play in a market increasingly receptive to meme coin narratives.