Shiba Inu's Cross-Chain Push Ignites Bullish Debate Amid Supply Concerns

Shiba Inu (SHIB), one of the most prominent meme coins in the cryptocurrency market, has recently attracted attention due to developments in its ecosystem and price dynamics. On September 2025, SHIB became the first meme coin to be listed on Folks Finance, a cross-chain decentralized finance (DeFi) lending platform. This integration enables SHIB holders to earn yields or use their tokens as collateral across multiple blockchains. The cross-chain functionality is facilitated by Chainlink’s Cross-Chain Interoperability Protocol, which allows seamless token and message transfers between different blockchains. Folks Finance also launched incentive rewards to encourage participation in the SHIB liquidity pool, signaling a strategic move to boost adoption and utility for the token [1].

The price of SHIB has shown mixed short-term performance. Following the listing announcement, SHIB gained approximately 2%, but it remains below its daily 99 SMMA, a key technical resistance level that traders watch for potential directional shifts [2]. On-chain data from Santiment reveals that SHIB’s top ten wallets hold 62.3% of the supply, the highest concentration among Ethereum-based assets. This level of centralization raises concerns about price manipulation and liquidity risk. In addition, SHIB’s burn rate surged 542.4% in 24 hours, with 455,390 tokens permanently removed from circulation, indicating efforts by the community to reduce supply and potentially increase scarcity [2].

Looking at broader technical analysis, SHIB is consolidating within a range on weekly charts, bounded by $0.0000106 and $0.000016. If the key support level at $0.000012 fails, the token could drop to its weekly range lows. The on-chain cost basis distribution heatmap highlights this zone as a critical demand area, where a significant portion of SHIB has been acquired by investors. Analysts suggest that SHIB bulls must defend this support to avoid a deeper correction. Meanwhile, the On-Balance Volume (OBV) has made a new weekly low, signaling strong seller dominance. The Relative Strength Index (RSI) has also failed to cross the neutral 50-level, reinforcing the bearish bias [4].

Despite these challenges, some analysts remain cautiously optimistic. Joao Wedson, a crypto analyst, noted that SHIB is in an accumulation phase, as indicated by the Realized Cap Impulse and the Net Unrealized Profit/Loss (NUPL) metrics. These indicators suggest that new capital is flowing into SHIB and that many holders are still sitting on losses, which could create a more favorable environment for a rally once market sentiment improves. Wedson also highlighted the Alpha Price, a rare metric that acts as a “magnet” for major price moves. Historically, this metric has aligned with significant directional shifts, and it currently suggests a potential 125% increase from current levels [5].

The broader market context for SHIB is complex. As a meme coin, SHIB is driven primarily by community interest and speculative trading, rather than intrinsic utility or fundamental value. This makes it highly susceptible to volatility and market sentiment shifts. Meme coins often gain traction during late-cycle phases when speculative flows dominate, and they frequently coincide with broader market tops. While SHIB has not yet broken out of its consolidation phase, Wedson argues that it is likely to reemerge as a top performer if memecoin narratives regain momentum [5].

For traders considering SHIB as an investment, the current environment presents both opportunities and risks. The token’s integration with cross-chain DeFi platforms like Folks Finance may enhance its utility and appeal to a broader audience. However, its high volatility, concentration of supply, and dependence on speculative sentiment mean that any significant price movement could be abrupt and unpredictable. Investors are advised to carefully evaluate their risk tolerance and consider diversifying their portfolios, given the inherent risks associated with meme coins and the broader cryptocurrency market [3].

Source:

[1] Shiba Inu Token Now Eligible For Cross-Chain Lending ... (https://finance.yahoo.com/news/shiba-inu-token-now-eligible-213135721.html)

[2] Shiba Inu Jumps 2%: What Is Going On? (https://finance.yahoo.com/news/shiba-inu-jumps-2-going-171943337.html)

[3] SHIBA INU Price, SHIB Price, Live Charts, and Marketcap (https://www.coinbase.com/en-gb/price/shiba-inu)

[4] Shiba Inu price prediction - All about THIS risky buying ... (https://ambcrypto.com/shiba-inu-price-prediction-all-about-this-risky-buying-opportunity-for-traders)

[5] Shiba Inu Price Prediction: Accumulation Phase Could ... (https://cryptodnes.bg/en/shiba-inu-price-prediction-accumulation-phase-could-trigger-massive-breakout/)