SHIB's Regulatory Win vs. Utility Stagnation: Meme Coin's Uphill Climb

Shiba Inu (SHIB) has found itself in the spotlight following its inclusion in the FTSE Grayscale Crypto Sectors Framework, a development that has reignited discussions about the token's potential to break through the $0.0001 price level. The framework, jointly developed by Grayscale Investments and FTSE Russell, classifies cryptocurrencies into five sectors, with SHIB now listed under the "Consumer & Culture" category. This classification underscores the project's growing recognition as a digital asset with cultural and community-driven appeal, according to Shiba Inu's marketing lead, Lucie, in a TheCryptoBasic report.

The move is significant for SHIB holders, as the framework aligns with the U.S. Securities and Exchange Commission's (SEC) Generic Listing Standards (GLS), which allow exchanges to list crypto ETPs (exchange-traded products) without individual SEC approvals for each token. Under the GLS, SHIB is among 11 cryptocurrencies deemed eligible for spot ETPs, provided they meet specific criteria. Grayscale's report highlights SHIB's inclusion as a validation of its long-term vision and structural resilience.

However, analysts caution that SHIB's path to "the moon" remains fraught with challenges. A recent assessment of the token's ecosystem reveals a critical utility deficit, particularly within its layer-2 solution, Shibarium. The platform's Total Value Locked (TVL) has remained below $1 million since early October 2025, a stark contrast to its theoretical potential and a clear indicator of weak adoption, according to a Yahoo Finance analysis. This stagnation has led some experts to label SHIB's $0.0001 target as a "dead end road," given the mismatch between its massive circulating supply and the slow pace of deflationary mechanisms, the analysis found.

The structural issues are compounded by broader market dynamics. Capital is increasingly shifting toward utility-driven sectors such as AI compute and DePIN (Decentralized Physical Infrastructure Networks), which offer tangible applications and revenue generation, the analysis notes. In contrast, SHIB's association with the "meme coin" label persists, deterring institutional investors and developers seeking projects with verifiable utility. The lack of meaningful activity on Shibarium further exacerbates this perception, with analysts observing that the chain has yet to establish a unique value proposition that differentiates it from established Layer-2 networks.

Despite these headwinds, there are signs of resilience within the SHIB community. A recent surge in token burns—spiking by over 42,000% in a 24-hour period—briefly lifted the token's price to $0.00001062, the Yahoo analysis reported. Additionally, SHIB has seen competition from alternative meme projects that promise aggressive tokenomics and AI-driven utility, forcing the original project to innovate to retain relevance, according to that report.

The path forward for SHIB hinges on its ability to demonstrate measurable utility and attract liquidity to Shibarium. Community efforts, while commendable, must be complemented by strategic partnerships and developer incentives to drive adoption. For SHIB to transition from a speculative asset to a foundational Web3 infrastructure component, its team will need to prioritize ecosystem growth over short-term price targets, the analysis concludes.

As the crypto market continues to evolve, SHIB's inclusion in the FTSE Grayscale framework offers a glimmer of hope. Yet, the structural challenges it faces underscore the reality that reaching "the moon" will require more than regulatory recognition—it will demand a fundamental shift in utility and adoption.