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Hoskinson: Midnight Could Pave Way for $10B Cardano Sidechains

Lele Jima
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Hoskinson: Midnight Could Pave Way for $10B Cardano Sidechains

Cardano founder Charles Hoskinson has reaffirmed that the Glacier Drop initiative is not a one-off event but a foundational component of the evolving ecosystem. 

For context, the Glacier Drop was introduced in the early stages of the Midnight project as its airdrop event. Launched in August, the Glacier Drop enabled eligible beneficiaries of the Midnight (NIGHT) airdrop to claim their tokens ahead of distribution.

When the NIGHT claim window closed in October, many assumed the initiative had concluded. However, Charles Hoskinson has said otherwise.

In a recent commentary, he clarified that Glacier Drop is not a one-off event. Instead, the initiative will evolve into a permanent mechanism to boost user participation and support long-term growth across the Cardano ecosystem.

Midnight to Drive This Strategy

At the center of this strategy is Midnight, Cardano’s privacy-focused sidechain, whose native token, NIGHT, began trading this month. Hoskinson explained that Midnight’s ultimate impact will depend on whether the broader Cardano community adopts and actively builds around its unique capabilities.

If embraced, Midnight could significantly strengthen Cardano by introducing blockchain-to-blockchain services that extend the network’s functionality beyond its base layer.

Notably, Hoskinson stressed that if Midnight reaches $10 billion, it could pave the way for other Cardano partner sidechains in the future. He imagines a scenario in which each of these sidechains reaches a $10 billion valuation.

In this model, the Cardano community could gain strategic advantages, such as early access and 50% of its token supply, as observed in Midnight. This structure, he argued, would reinforce Cardano’s position as a valuable hub for emerging blockchain infrastructure.

Glacier Drop to Serve as a Distribution Mechanism for New Tokens

Hoskinson further stressed that Cardano maintains a steady pipeline of strong ideas ready for annual deployment, reinforcing a long-term vision centered on continuous innovation.

In this framework, Glacier Drop would function as the primary distribution and onboarding mechanism, directly connecting users to new networks and services as they launch.

Consequently, when new sidechains similar to Midnight go live on Cardano, ADA holders could receive up to 50% of the token supply, with allocations claimed through the Glacier Drop initiative.

Team to Refine Glacier Drop

While acknowledging that Glacier Drop began as an experiment with both strengths and flaws, Hoskinson confirmed that the team is committed to refining it. According to him, the development team will fix the issues with the Glacier Drop over the next six months.

Over this period, the Glacier Drop will undergo a comprehensive retooling to improve usability, address shortcomings, and deliver a more seamless user experience.

This upgrade cycle will transform Glacier Drop from an experimental rollout into a polished core feature of the ecosystem, allowing users to claim tokens from new partner chain airdrops.

Shiba Inu Prediction for Dec 29: Next Key Resistance at $0.00000859 but Burn Rate is Declining

Mark Brennan
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Shiba Inu Prediction for Dec 29: Next Key Resistance at $0.00000859 but Burn Rate is Declining

Shiba Inu shows resilience with modest gains, but its burn rate has dropped by 90%, affecting supply and long-term price action.

Shiba Inu (SHIB) is showing resilience despite the slow price recovery in the broader crypto market, currently sitting at $0.000007465. The price action has been attempting to test the resistance zone near $0.0000076, with the coin having recently reached a high of $0.000007549 before experiencing a slight pullback. 

SHIB has shown modest improvements, with a 1.7% increase over the past 24 hours and a 3.4% gain in the last 7 days. However, the 14-day performance reveals a pullback of 8.5%, showing that while short-term momentum is positive, SHIB has faced some challenges in the week leading to the festive period. Can the SHIB Army maintain its enthusiasm and help push through key resistance levels?

Key Shiba Inu Level to Hold

In terms of technical indicators, Shiba Inu is showing signs of potential recovery but still faces significant challenges. The current price of SHIB is testing a key support level near $0.00000664 (the lower Bollinger Band), which has been holding up well recently. If SHIB drops below this level, further downside may be possible.

Shiba Inu Key Levels
Shiba Inu Key Levels

On the upside, the resistance level is at $0.00000859, near the upper Bollinger Band, which could cap any upward momentum. A break above this resistance could see SHIB testing higher levels, potentially aiming toward $0.000009.

Further, the MACD (Moving Average Convergence Divergence) indicator is also offering insight into SHIB’s momentum. The histogram has recently shifted from negative to positive territory, suggesting a possible bullish crossover. The MACD line (blue) has also crossed above the signal line (orange), which signals stronger bullish momentum.

The fact that the MACD is showing increasing positive momentum, along with SHIB approaching key resistance levels, the meme coin may be gearing up for a move. However, SHIB must maintain support at $0.00000664 to keep any upward momentum intact.

SHIB Burn Rate Falls 90%

As Shiba Inu continues to surge towards key resistance levels, burn activity keeps on declining. As of the latest data, the burn rate has experienced a notable drop of 90.31% in the last 24 hours, with 1,066,266 SHIB burned during this period.

Shiba Inu Burn Rate
Shiba Inu Burn Rate

Despite the decreased burn rate, several transactions are actively reducing the supply. For example, in the past 4 hours alone, 125,759 SHIB were burned, and 940,506 SHIB were burned 23 hours ago.

Other significant burns occurred two days ago, with 2 million SHIB burned across two transactions. The ongoing burn efforts, albeit slower in recent days, still play a crucial role in reducing the total supply and potentially increasing scarcity. 

Bitwise CIO Says Bitcoin Is Entering an Era Beyond Explosive Annual Gains

Zabi
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Bitwise CIO Says Bitcoin Is Entering an Era Beyond Explosive Annual Gains

Bitcoin is likely entering a phase of sustained but measured growth, rather than repeating the explosive rallies that defined earlier market cycles, according to senior executives at asset manager Bitwise.

Speaking on CNBC, Bitwise Chief Investment Officer Matt Hougan said the firstborn cryptocurrency now appears positioned for a slower, more consistent climb. Future gains are more likely to accumulate gradually than arrive through sudden, short-lived spikes.

Hougan attributed this shift to a maturing market structure. As institutional participation deepens, price volatility may ease even as long-term returns remain intact.

Within this framework, Hougan reaffirmed his view that 2026 should still be a constructive year for Bitcoin. He first shared this outlook publicly in July, well before the market reached its most recent peak.

Indeed, that forecast came ahead of Bitcoin’s rally to an all-time high of roughly $126,200 in October. Although prices have since retreated, Hougan said the broader trend remains unchanged.

Ongoing Debate Around Bitcoin Four-Year Cycles

Despite this optimism, debate continues over whether Bitcoin’s historical four-year cycle still applies. Sebastian Beau, chief investment officer at ReserveOne, told CNBC the question remains unresolved.

Bitcoin climbed to a high above $126,000 in October before sliding to around $87,000—a roughly 30% decline. Beau noted that because this timing mirrors previous cycle peaks, some investors fear further weakness could emerge in 2026, keeping cycle-based concerns firmly in focus.

Retail Pressure Meets Institutional Support

Hougan linked the recent pullback to year-end selling by retail investors, many of whom exited positions early in anticipation of a familiar cycle-driven correction.

However, that selling has been met by steady institutional accumulation. According to Hougan, consistent buying from larger investors has helped limit the severity of the downturn.

In previous cycles, drawdowns often approached 60%. This time, the decline has been far more restrained, thereby underscoring the growing influence of institutional demand.

Bitcoin is currently trading at $89,561, down 1.1% over the past 30 days, according to CoinGecko data. Although the modest decline signals a period of relative softness in the market, the figures do not indicate any acute financial stress.

Nevertheless, not all analysts share the same outlook. Veteran trader Peter Brandt recently warned that Bitcoin could fall to $60,000 by the third quarter of 2026.

Political Influence Seen as Limited

Bitcoin began 2025 with a surge toward $109,000 following Donald Trump’s inauguration as US president, an event widely seen as a catalyst for early-year gains.

Looking ahead, Hougan said additional upside from political factors appears unlikely. He argued that regulatory clarity has largely already been established. Beau echoed that assessment, noting that Bitcoin’s classification as a commodity has been clearly established by the US SEC.

Taken together, industry executives see institutional participation as a stabilizing force. While dramatic, cycle-driven rallies may become less common, steady long-term appreciation remains the prevailing expectation for Bitcoin.

Cardano Price Prediction: A Final Demand Retest Before the Next Parabolic Leg?

Elendu Benedict
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Cardano Price Prediction: A Final Demand Retest Before the Next Parabolic Leg?

Cardano could enter a final accumulation phase to retest a multi-year demand zone before its next parabolic expansion to a new all-time high.

Analyst “Crypto4light” shared this Cardano price prediction in his recent analysis. He foresees a little more sideways trend before a massive price upside move. 

The commentary follows a brief rebound for ADA. Notably, after reaching a low of $0.34 on Christmas Day, the coin has recovered by 10% to its current market price of $0.37

Cardano Headed for End-Of-Cycle Accumulation

Amid this rebound push, the TradingView analysis from Crypto4light suggested a possible “end of cycle accumulation” price action. For context, Cardano currently trades around a large red demand box, where it consolidated in for much of 2023 before breaking out.

The market watcher foresees similar price action even as the 2024/2025 bull season wraps up, in line with historical cyclical patterns. Remarkably, this demand zone lies between the 0.18 and 0.27 Fibonacci levels at $0.32 and $0.11, respectively.

Furthermore, ADA trends below a descending trendline originating from the 2021 top. The analyst drew the resistance line from the August 2021 closing price of $2.91, which also cuts across multiple price peaks.

It aligned with the December 2024 peak price of $1.32 and the March high of $1.17. It also ended the bullish price actions between August and October before the recent steep decline to the current market level.

Cardano to Start Accumulation Phase
Cardano to Start Accumulation Phase

Breakout and Possible Target

According to the analyst, Cardano could break out from the descending trendline after a successful retest of the accumulation zone, turning the resistance zone into support. As the zone provided the required momentum for the early and late 2024 price rallies, it could do the same this time, taking the coin to unprecedented heights.

For the targets, Crypto4light used Fibonacci levels that he has worked with since the 2021 top to predict the targets for the next parabolic move after the accumulation. 

His first target is a rally to the mid-range around $1.30 and $1.95. Notably, the latter price aligns closely with the 0.50 Fibonacci level, representing a 427% growth from the current market price.

Meanwhile, Cardano could go well above this level. His analysis spotlighted a possible climb to the 1.618 Fibonacci level at $4.55. This surpasses its previous peak price and marks a new all-time high for the ADA. From the current price, the coin would need a 1,129% surge to achieve this target.

Remarkably, the commentary emphasized that this upsurge would not happen if ADA closes below the lower boundary of the demand zone at $0.011. Cardano would further fall by 70% to reach that price low.

Robinhood Hands Out $750,000 in Bitcoin on Day Two of Holiday Campaign

Zabi
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Robinhood Hands Out $750,000 in Bitcoin on Day Two of Holiday Campaign

Robinhood extended its holiday countdown promotion into a second day, distributing $750,000 worth of Bitcoin to users.

Initially, the promotion launched on Friday with a sizable digital-asset giveaway. On its opening day, Robinhood awarded $500,000 worth of Dogecoin to eligible users. On day two, the company raised the stakes and shifted its focus from Dogecoin to Bitcoin.

Moreover, it broadened the scope of the promotion beyond digital assets, introducing premium physical prizes, including Hawaii vacation packages and Away-brand suitcases.

By pairing financial incentives with luxury experiences, Robinhood appears intent on maintaining excitement and sustaining participation throughout the holiday period.

This approach is consistent with the company’s long-standing playbook. Robinhood has frequently used incentives to drive engagement across its platform, encouraging activity in stocks, options, and cryptocurrencies alike. The holiday countdown fits within that strategy, with high-value prizes to attract both existing users and new sign-ups.

Glitches Cloud Holiday Giveaway Excitement

Nevertheless, despite a high-profile launch, the campaign stumbled out of the gate. On day one, users reported technical issues when trying to claim rewards, citing blank screens and long loading times.

The problems were particularly vexing given the campaign’s narrow five-minute redemption window. Robinhood has yet to respond to users affected by the glitches.

Stock Performance Adds Contrast

While the promotion generated buzz among users, Robinhood’s stock moved in the opposite direction. Shares of HOOD closed Friday at $118.13, down 1.92% on the day and underperforming the broader market. The S&P 500, Dow Jones, and Nasdaq all posted smaller declines.

This pullback extends a weaker monthly trend. Over the past month, HOOD has declined 6.05%, even as the finance sector and the S&P 500 have gained.

Analysts Divided on the Outlook

Consequently, Wall Street remains split on Robinhood’s prospects. Deutsche Bank analyst Brian Bedell continues to take a bullish stance, reaffirming a “Buy” rating while raising his price target to $160. According to TipRanks, Bedell has a 61.8% success rate and an average return of 19.4% over the past year.

In contrast, technician Carter Worth has cautioned that momentum may be turning, warning the stock could retreat toward the $100 level.

Robinhood shares have been highly volatile in 2025. After bottoming at $29.66 in April, the stock surged to a peak of $153.86 in October,a 419% rally in just six months. However, recent weakness has reignited debate over whether that momentum can be sustained.

Ethereum Price Analysis for Dec 29: Here’s Key Support to Hold for Run to $4,200

Mark Brennan
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Ethereum Price Analysis for Dec 29: Here’s Key Support to Hold for Run to $4,200

Ethereum shows bullish momentum, potentially leading to a run if the key support level holds.

Ethereum (ETH) is seeing strong upward momentum, with its price hitting $3,016 amid a notable 2.7% increase in the last 24 hours. This surge suggests Ethereum might be in a bullish phase, but the key question is whether it can maintain this momentum. The current price is based on the upper end of the 24-hour range between $2,926.99 to $3,049.93, indicating that Ethereum is testing significant resistance levels.

If the price manages to break above the $3,050 mark, the next resistance level could be near $3,100, with a potential push towards $3,200 if the upward trend continues. On the downside, if Ethereum pulls back, the $2,900 to $2,920 zone appears to be a solid support range, where buyers might step in to prevent further declines.

In terms of broader performance, Ethereum has shown impressive resilience over the past 24 hours, gaining 2.7%. However, the 14-day performance shows a pullback of 4%, highlighting the challenges Ethereum faced in the prior two weeks. 

Developing Bullish Momentum?

In terms of momentum indicators, Ethereum is showing mixed signals. The current price of $3,016 places ETH near the upper end of its recent range, with the daily candlestick chart showing a steady move upward.

Ethereum 1-Day Price Chart
Ethereum 1-Day Price Chart

However, the Awesome Oscillator (AO) at -75.82 is still in the red, indicating that while Ethereum is gaining some ground, bearish momentum remains present. However, the oscillator has recently turned green, a sign of developing bullish momentum if it can run to the positive end.

Further, despite touching the overbought territory, the Stochastic Oscillator’s current positioning shows Ethereum could maintain its upward movement if the momentum remains strong.

However, caution is advised as Ethereum’s price approaches resistance levels near $3,050 and $3,100. If the price fails to break these key resistance zones and the indicators start to show signs of divergence, a pullback toward support levels in the $2,900 range could occur. 

Key Ethereum Level to Hold

Meanwhile, according to pseudonymous analyst The Boss, Ethereum is at a critical point, with the green line representing a key support level around $2,917.65. 

Ethereum Prediction
Ethereum Prediction

As long as the price stays above this floor, there is potential for a rally toward the blue line based above $4,200. Another immediate resistance also exists at $3,415. To reach $4,200 from the current price of $3,016, Ethereum would need to surge by approximately 39.3%.

Bitcoin Prediction for Dec 29: Can Bulls Maintain Strength as Short Positions Face Pressure?

Mark Brennan
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Bitcoin Prediction for Dec 29: Can Bulls Maintain Strength as Short Positions Face Pressure?

Bitcoin shows strong momentum as bulls push higher, while short positions face significant pressure. Where’s BTC headed next?

Bitcoin (BTC) is surging back into the spotlight, gaining notable momentum despite the typical liquidity crunch of the holiday season. BTC’s price recently hit a high of $90,230.38, maintaining a steady uptrend, currently trading at $89,852.56.

The strong move towards the higher end of the daily range ($87,418.78 – $90,230.38) suggests that Bitcoin may be attempting to reclaim its previous resistance levels. Examining the broader performance over the last 1-day, 7-day, and 14-day timeframes, Bitcoin has demonstrated impressive resilience.

Specifically, in the past 24 hours, Bitcoin has gained 2.6%, and in the last 7 days, it has seen a modest 1.2% increase. However, the 14-day performance shows a more tempered growth of 0.3%, suggesting that while the short-term momentum is positive, it’s still in a phase of cautious recovery.

Can Bitcoin Bulls Maintain Strength?

However, the critical question remains: can it maintain strength and break through the resistance levels? Looking at TradingView’s daily chart, Bitcoin is currently testing the $90K zone, with the Fibonacci retracement levels offering insights into potential support and resistance points. 

Bitcoin Resistance and Support
Bitcoin Resistance and Support

The most recent price movement has seen BTC break through the 0.5 retracement level (above $89,500), which now acts as a solid support zone. Should Bitcoin drop again, this level will be a key area to watch for buyers to step in and maintain the upward momentum. If BTC fails to close above this support, the next area of significant support could be closer to the $88,000 range.

On the upside, Bitcoin is approaching the 0.618 Fibonacci level at around $90,711, with the $90K mark acting as an immediate resistance. A breakthrough above this resistance could signal further upside potential, opening the door for a move toward the 0.786 level ($92,416) and beyond. 

Meanwhile, the Chande Momentum Oscillator, which measures momentum based on the difference between recent gains and losses, is currently at 34.67. This suggests Bitcoin’s momentum is currently leaning towards a bullish bias. Given that it’s not oversold (below -50) or overbought (above 50), Bitcoin could still have room for either upward or downward movement depending on market conditions and price action around key levels.

Bitcoin Shorts Are Under Pressure

Elsewhere, looking at the futures market, liquidations amounted to a staggering $340.75K over the past hour, with long positions being the dominant force. However, in the 4-hour window, we see a massive contrast, with $539.67K in long positions being liquidated compared to $19.44M in short positions. 

Bitcoin Liquidation Data
Bitcoin Liquidation Data

Looking at longer timeframes, the 12-hour and 24-hour liquidation figures are similarly telling. Over the past 12 hours, liquidations reached $43.68 million, with long positions facing a relatively minor $1.82 million in liquidation while short positions were pummeled with $41.86 million in liquidation. 

This shows that despite the price fluctuations, the short side is still under heavy pressure. The 24-hour data paints a similar picture, with $45.51 million in liquidations, $42.49 million of which came from shorts, while longs lost only $3.02 million.

Top Validator Says There is No XRP Supply Shock as Exchanges Still Hold Nearly 16B XRP

Sam Wisdom Raphael
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Top Validator Says There is No XRP Supply Shock as Exchanges Still Hold Nearly 16B XRP

Talks of an XRP supply shock have picked up again, with some market participants arguing that falling exchange balances could push prices higher. 

However, Vet, an XRPL dUNL validator, has rejected this view, saying exchanges still hold large amounts of XRP and that market conditions do not support the idea of a looming supply shock.

Notably, promoters of the supply shock theory often highlight declining XRP reserves on exchanges such as Binance. They believe reduced availability could limit liquidity and drive prices up. Vet has vehemently disagreed with these suggestions.

Exchanges Still Hold Nearly 16B XRP

According to Vet, exchanges currently hold close to 16 billion XRP, which remains easily accessible to traders. He explained that holders who keep XRP off exchanges can transfer their tokens to trading platforms within three to four seconds. This speed would prevent the supply from staying tight. 

Vet also talked about the prospect of dried-up order books. He noted that order books change constantly, and liquidity can increase or decrease within seconds, depending on market activity.

The dUNL validator pointed out that movements do not follow a fixed pattern, as buying around $10 million can sometimes lift prices, while buying as much as $100 million can still coincide with price declines.

Zach Rector, a well-known XRP community figure and supporter of the supply shock narrative, asked how confident Vet is of his figures. He said some of the numbers looked unexpected, highlighting Evernorth, which reportedly holds about 86 million XRP, as an example that raises doubts.

Vet said he remains confident that his figures represent the minimum amount of XRP on exchanges, not the full total. He explained that exchanges often control more wallets than those publicly identified. 

Four Major Exchanges Hold 10B+ XRP in Select Wallets

As a result, actual exchange balances likely exceed what on-chain data currently shows. To support his point, Vet highlighted Upbit, noting that just four XRP wallets linked to the exchange already hold about 2 billion XRP.

Data from XRPScan supports Vet’s position. The blockchain explorer shows that Upbit controls 12 wallets with at least 1 million XRP each, holding a combined 6.256 billion XRP. 

Binance and Binance.US together control 13 wallets at that level, holding 2.5 billion XRP. Uphold also has four wallets with at least 1 million XRP, totaling 1.679 billion XRP. Altogether, these four exchanges hold 10.435 billion XRP in wallets with balances of at least 1 million tokens.

Responding to Vet, Australian attorney and XRP community figure Bill Morgan said the supply shock theory cannot accurately assess XRP price movements, much like earlier claims that Ripple’s escrow activity controlled prices. Morgan argued that Bitcoin’s price action remains the main driver of XRP and broader crypto market trends.

Proponents of the Supply Shock Theory

The latest comments from Vet and Morgan come on the back of recent discussions surrounding the supply shock theory. In October, Zach Rector, who has also suggested that XRP could hit $100, said the progress around Flare’s FXRP project shows the supply shock theory is no longer a meme.

Meanwhile, in September, Versan Aljarrah, founder of Black Swan Capitalist, claimed major institutions, including JPMorgan, have quietly accumulated XRP. He suggested this accumulation could lead to a supply shock and advised investors to hold their tokens.

The recent launch of XRP ETFs has also bolstered confidence. These ETFs have attracted $1.14 billion in net inflows over 30 straight days, leading community figures like Chad Steingraber to suggest institutional demand could reduce available supply.

Ex-CFTC Chair Reacts as XRP “589” Appears in Times Square New Year Display

Abdulkarim Abdulwahab
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Ex-CFTC Chair Reacts as XRP “589” Appears in Times Square New Year Display

The XRP community is once again buzzing after an unexpected moment tied a mainstream New Year’s Eve broadcast to one of XRP’s most famous numbers: 589.

The development has drawn reactions from high-profile figures, including a former U.S. regulator.

Times Square New Year Numbers Spark XRP Attention

Recently, a CBS Bay Area (KPIX) segment showed the preparation of New York City’s New Year’s Eve numerals at Times Square. Officials revealed that the massive “2026” sign contains exactly 589 LED bulbs.

The report explained that each numeral uses a specific number of bulbs, totaling 589 across the display. While the detail was presented as a fun behind-the-scenes fact, it caught the attention of the XRP community.

XRP Community Flags the “589” Coincidence

A widely followed XRP-focused account, NotFinancialAdvice.Crypto, highlighted the detail, noting how precisely the bulb count was emphasized.

MoonPay later shared the same video, adding that the display had 589 bulbs — not 588, not 590. Accordingly, the payment processor called it “the most XRP-coded New Year’s Eve of all time.”

The post quickly circulated within the XRP community.

Ex-CFTC Acting Chair Caroline Pham Responds

The moment gained further traction after Caroline Pham, MoonPay’s Chief Legal Officer and former Acting Chair of the U.S. Commodity Futures Trading Commission (CFTC), reacted to the video with rocket emojis.

While Pham did not add commentary, her reaction alone was enough to spark speculation and discussion across the XRP Army. Several community members interpreted the response as a lighthearted acknowledgment of the ongoing “589” narrative.

For instance, X user Ray Ray described the number as a “code” rather than a coincidence. Community voice X Finance Bull suggested that the timing, visibility, and repetition of the number added fuel to long-running XRP theories.

Why “589” Still Matters to XRP Holders

The number 589 has been part of XRP culture for nearly a decade. Originating from early XRP-related artwork and riddles, it later became associated with bold long-term price expectations and symbolism around XRP’s role in global finance.

The meme resurfaced earlier this month after Solana’s official account posted “589,” triggering millions of views and renewed excitement. Even Ripple CEO Brad Garlinghouse has historically maintained an X follower count at 589, further cementing the number’s mystique.

Ripple CEO X profile with 589 following
Ripple CEO X profile with 589 following

Some analysts have also pointed out that ISO 4217 currency code 589 remains unassigned, adding another layer of speculation around XRP and Ripple’s broader ambitions.

Whether by chance or influence, the Times Square display shows that the XRP “589” idea continues to appear in surprising ways.

As XRP and the crypto market move into another year of regulatory talks and ecosystem growth, many expect 2026 to be a promising year, as suggested by the bright LED lights of Times Square.

Here’s Why Shiba Inu Is Losing Appeal as a Long-Term Investment

Lele Jima
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0
Here’s Why Shiba Inu Is Losing Appeal as a Long-Term Investment

Shiba Inu currently faces major challenges that hinder its position as a long-term investment option. 

Despite rebounding from last week’s low below $0.000007 to the $0.0000075 range, Shiba Inu suffered a fresh setback over the weekend. As a result, the meme token slipped from 24th to 26th in the global crypto rankings.

Specifically, Canton (CC) and Uniswap (UNI) overtook SHIB, with market caps of $4.83 billion and $4.59 billion, respectively. Meanwhile, Shiba Inu is trading at $0.000007502, up 2.3% in the past 24 hours and 2.6% over the last week. 

However, a broader view reveals persistent weakness. SHIB remains down 12.4% over the past 30 days and 64.5% since the start of the year.

Despite this prolonged underperformance, some influencers continue to urge investors to overlook short-term price movements and focus on SHIB’s long-term potential. They argue that the ongoing dip presents an opportunity to accumulate tokens at cheaper rates ahead of a future surge. 

Shiba Inu Gradually Losing Its Standing as a Viable Long-Term Investment Option 

Contrary to this narrative, current market trends point to a more troubling reality, as SHIB continues to struggle to justify its appeal as a long-term investment.

Low-Impact Burns Fail to Reduce Supply

Notably, Shiba Inu launched in 2020 with an enormous supply of 1 quadrillion tokens. Since then, developers and the community have implemented token burns to cut supply. Nevertheless, SHIB still carries a massive circulating supply of about 589.24 trillion tokens, and the burn campaign — once seen as a key catalyst for long-term price appreciation—has lost momentum.

Previously, the community burn tracker Shibburn reported billions of tokens burned daily. Today, however, burn activity has dropped sharply, with only small amounts sent to dead wallets.

In fact, data from Shibburn shows the burn rate has plunged by 89.96% over the past 24 hours, with just 1.09 million tokens burned in that timeframe. Consequently, the likelihood of meaningfully reducing supply to support a sustained upside remains low.

Shiba Inu burnss
Shiba Inu burns

Shibarium Network Activity Slows

Similarly, when the team launched Shibarium in August 2023 as Shiba Inu’s Layer-2 network, it positioned the platform as a hub for developers building utility-driven projects. In theory, this expansion was expected to boost visibility for SHIB and other ecosystem tokens, thereby accelerating adoption.

In practice, however, outcomes have fallen short. Although a handful of projects have launched on Shibarium, they have yet to achieve meaningful adoption or attract broader market attention. As a result, SHIB and its sister tokens—BONE, LEASH, and TREAT—have seen little benefit from the network’s rollout.

Too Many Unfulfilled Promises

Moreover, as part of its effort to evolve from a meme coin into a utility-driven ecosystem, the Shiba Inu team announced multiple initiatives, including games, a metaverse, and blockchain infrastructure.

While it has successfully launched Shibarium and its decentralized exchange, ShibaSwap, several flagship projects remain incomplete.

Notably, the promise to deliver SHIB: The Metaverse and the SHIB Marketplace by 2024 remains unfulfilled to date. In addition, there has been no meaningful update on the proposed Layer-3 privacy blockchain, which was expected to debut last year.

These repeated delays have weakened investor confidence and made it harder for SHIB to be viewed as a serious long-term project.

Promotion of Non-Ecosystem Tokens

Compounding these issues, some key opinion leaders within the Shiba Inu community have promoted tokens outside the ecosystem. In one widely criticized instance, the @shibtoken X account, often regarded as the project’s official handle with over 3.9 million followers, promoted a Solana-based meme coin called Hachi.

Community members pushed back, arguing that such actions could divert attention and capital from SHIB to unrelated tokens.

Lack of New Utility

Furthermore, despite announcing multiple initiatives, Shiba Inu has yet to deliver utilities with a tangible, measurable impact. As a result, many investors continue to classify SHIB primarily as a meme coin. Even the adoption of existing ecosystem projects remains limited.

Although lead developer Shytoshi Kusama has teased an AI-related initiative, detailed information has yet to emerge. For many observers, the absence of clear, value-generating utility underscores the need for new products that could reposition SHIB as a credible long-term investment.

Team Inefficiencies and Transparency Concerns

Finally, ongoing concerns about the team’s transparency further undermine SHIB’s long-term outlook. Since launch, the core developers have operated under pseudonyms, and even public appearances by Kusama have occurred with his identity concealed. While some community members initially accepted this approach, skepticism has steadily grown.

More recently, communication between the team and the community has deteriorated. Several prominent figures have reduced engagement on X, with some accounts set to private or largely inactive.

Critics have seized on this silence, especially after K9 Finance revealed that the Shiba Inu team stopped responding to requests related to recovering funds lost in the Shibarium exploit. 

These unresolved issues significantly weaken confidence in Shiba Inu’s long-term prospects. Unless the team addresses these challenges, SHIB is likely to remain under pressure as investors reassess its long-term viability. 

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