Shiba Inu's Surging Staking Activity and Its Impact on SHIB Price

Shiba Inu's staking activities have surged, with over 4.6 trillion tokens worth $58.7 million locked on DeFi platforms. This reflects growing conviction among holders on SHIB's potential price trajectory. The growing demand for the meme token and its staking activities, coupled with a continued decrease in circulating supply, could boost its scarcity and exert upward pressure on its price performance.

Shiba Inu (SHIB) has seen a significant increase in staking activities, with over 4.6 trillion tokens worth $58.7 million locked on DeFi platforms as of July 2, 2025. This surge reflects a growing conviction among holders regarding SHIB's potential price trajectory. The rising demand for the meme token and its staking activities, coupled with a continued decrease in circulating supply, could boost its scarcity and exert upward pressure on its price performance.

The increase in staking activities is a notable development in the SHIB ecosystem. According to [1], SHIB's latest price was $0.00001286, down 1.857% in the last 24 hours. This decline in price has been accompanied by a significant drop in open interest, which has fallen by over $100 million in recent days. The decrease in open interest coincides with a decline in the total value locked (TVL) in Shibarium, the layer-2 network designed to enhance SHIB's utility.

The shrinking TVL in Shibarium is concerning because it reveals a lack of developer and user engagement with the network. Total value locked represents the assets actively being used within a blockchain's ecosystem, whether for staking, lending, or decentralized applications. A declining TVL implies that capital is migrating elsewhere, often to platforms offering stronger incentives or clearer utility. This shift in market preferences towards utility-driven projects is challenging SHIB's reliance on token burns as a strategy to maintain its value.

While SHIB's staking activities indicate growing conviction among holders, the market's shift towards projects with stronger utility and clearer value propositions remains a challenge. Analysts now suggest that newer tokens with cleaner upside, such as Remittix (RTX) and Pengu, may offer better returns [3]. The question is not whether the SHIB price can move but whether it can move enough, fast enough, to beat these newer tokens.

The growing demand for SHIB and its staking activities, coupled with a continued decrease in circulating supply, could boost its scarcity and exert upward pressure on its price performance. However, the market's shift towards utility-driven projects and the challenges faced by SHIB's layer-2 network, Shibarium, present significant obstacles. The next few months will be critical in determining whether SHIB can evolve to meet these new market demands or if the market has simply moved on.

References:
[1] https://www.ainvest.com/news/shiba-inu-price-drops-5-open-interest-falls-100m-2507/
[3] https://www.barchart.com/story/news/33673681/can-you-still-turn-100-into-100k-with-shiba-inu-shib-analysts-think-these-2-coins-are-more-likely