SHIB Price Dips 13% Amid Governance Disputes and Market Downturn

Generated by AI AgentCoin World
Tuesday, Aug 5, 2025 6:52 pm ET2min read
Aime RobotAime Summary

- Shiba Inu (SHIB) dropped 13% amid crypto market declines driven by U.S. trade tariffs, weak employment data, and profit-taking from Bitcoin ETFs.

- Internal governance disputes, including POE IDO controversies and DAO activation delays, intensified community divisions and reduced Shibarium transaction volumes by 23%.

- Whale wallets added 4% more SHIB despite bearish sentiment, while analysts link recovery to macroeconomic shifts rather than governance reforms.

- The Shiba Inu case highlights challenges balancing decentralization with efficiency, with 40% of developers supporting WoofSwap’s reform agenda.

Shiba Inu (SHIB) has taken center stage as crypto markets continue to experience downward pressure, with SHIB’s marketing lead, Lucie, emphasizing a time-tested investment strategy for navigating the turbulence. Amid a broader slump driven by global trade tariffs and weak U.S. employment data, Lucie urged investors to adopt a “buy low, sell high” approach, particularly for those following a dollar-cost averaging (DCA) strategy [1]. The recommendation comes as SHIB’s price dropped to $0.00001214, ranking it 22nd by market capitalization, a decline from its earlier positions [1].

The recent market downturn has been attributed to a mix of macroeconomic and internal factors. Lucie pointed to the long-term destabilizing effect of U.S. trade tariffs, which have caused uncertainty in international financial markets [1]. The release of slower-than-expected U.S. employment data added to the unease, dampening both traditional and crypto market sentiment [1]. Meanwhile, within the crypto space, profit-taking and outflows from spot Bitcoin ETFs have accelerated selling, further weighing on investor confidence [1].

Internally, SHIB faces mounting challenges. Governance disputes and a lack of transparency have sparked criticism from key community members like Kaal Dhairya, who has pointed out personal biases in decision-making as a barrier to growth and trust [1]. He has called for the activation of the Shiba Inu DAO to empower community members—“Shibizens”—in critical decisions, highlighting the K9 project as a past success driven by collaborative efforts [1].

The recent POE IDO controversy on Positions Exchange has intensified tensions, with WoofSwap and other developers accusing the core team of favoring certain projects [2]. In response, the team has proposed activating the Shiba Inu DAO but has been criticized for a lack of concrete timelines and details [2]. The fallout has had measurable impacts on network performance: Shibarium’s transaction volumes dropped by 23%, and new wallet creation declined by 22% following the dispute [2].

SHIB’s price has also been affected, dropping 13% in a week amid rising bearish sentiment [3]. Despite this, whale wallets have added 4% more SHIB in the last seven days, suggesting continued interest from large holders [4]. Analysts note that SHIB’s recovery is likely tied to macroeconomic and regulatory developments rather than internal governance improvements, with a key resistance level at $0.00001549 and an RSI of 37.35 [5].

Community sentiment remains divided, with approximately 40% of developers supporting WoofSwap’s reform agenda [2]. Others remain loyal to the current leadership, concerned about the risks of rapid governance shifts. As SHIB continues to grapple with both external market pressures and internal governance issues, the outcome of these debates may determine its long-term viability and broader relevance in the evolving crypto ecosystem [2].

The broader crypto community is watching the Shiba Inu case closely, viewing it as a litmus test for the challenges of balancing efficiency with decentralization [2]. The resolution of these disputes could have implications not only for SHIB but also for the future of decentralized governance across the industry [2].

Source:

[1] Cryptofrontnews - [https://cryptofrontnews.com/shib-lead-shares-key-strategy-as-crypto-market-dips-continue/](https://cryptofrontnews.com/shib-lead-shares-key-strategy-as-crypto-market-dips-continue/)

[2] Cryptsy - [https://cryptsy.com/shibarium-faces-reform-push/](https://cryptsy.com/shibarium-faces-reform-push/)

[3] BeInCrypto - [https://beincrypto.com/shib-price-slides-hodling-pattern-say-recovery-is-near/](https://beincrypto.com/shib-price-slides-hodling-pattern-say-recovery-is-near/)

[4] Gate.com - [https://www.gate.com/post/status/12791770](https://www.gate.com/post/status/12791770)

[5] AInvest - [https://www.ainvest.com/news/shib-whales-surge-870-price-breaks-0-00001242-3-4m-exchange-outflow-2508/](https://www.ainvest.com/news/shib-whales-surge-870-price-breaks-0-00001242-3-4m-exchange-outflow-2508/)

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