Why did the price of SHIB fall?
Shiba Inu (SHIB) dropped 1.75% in the last 24 hours, slightly better than the overall crypto market, which fell 2.2%. This decline is part of a larger 11.26% drop over the past week, mainly due to security concerns and technical weaknesses.
- Shibarium Security Breach – A $2.4 million attack on the Shibarium bridge raised fresh doubts about security.
- Technical Weakness – SHIB’s price fell below a key support level at $0.00001178.
- Market Caution – The Crypto Fear & Greed Index at 32 shows investors are very cautious.
Deep Dive
1. Shibarium Security Breach (Negative Impact)
Overview:
On September 21, a flash loan attack targeted Shibarium’s Ethereum bridge, stealing $2.4 million worth of ETH and SHIB tokens (Bitget News). Emergency steps were taken to limit bridge use, but this incident raised new questions about the network’s security.
What this means:
The attack reduced the number of SHIB tokens in circulation, but more importantly, it hurt investor confidence. Layer-2 networks like Shibarium must be highly secure to support SHIB’s deflationary model. Since there are 589 trillion SHIB tokens available, even small disruptions can cause big price swings.
What to watch:
Look for updates on Shibarium’s validator key migration and results from independent security audits.
2. Technical Weakness (Negative Impact)
Overview:
SHIB’s price fell below a key pivot point at $0.00001178 and its 7-day moving average of $0.00001236. The Relative Strength Index (RSI) is at 22.79, indicating the coin is heavily oversold. However, the MACD indicator shows ongoing selling pressure.
What this means:
Automated trading likely triggered stop-loss orders below $0.00001178, pushing the price down further. The next important support level is $0.00001155, the low from September 21. Resistance is near $0.00001225, making the short-term outlook bearish.
3. Overall Crypto Market Sentiment (Mixed Impact)
Overview:
The Federal Reserve’s rate cut on September 17 didn’t boost crypto markets. The total crypto market cap dropped 2.2% in 24 hours. SHIB’s 1.75% drop was slightly better but still reflects a cautious mood (Fear & Greed Index at 32).
What this means:
Meme coins like SHIB usually suffer during times of market fear. However, SHIB’s trading volume jumped 43.8% to $247 million, showing strong buying interest compared to most top 100 coins.
Conclusion
SHIB’s recent decline is due to security concerns with Shibarium, technical breakdowns, and overall market caution. While the coin is oversold and could bounce back, the network needs to prove it has addressed the security issues to restore confidence. Key point to watch: Will SHIB stay above the critical $0.00001155 support level in the next 48 hours?
What could affect the price of SHIB?
Shiba Inu’s price is caught between hype-driven momentum and risks within its ecosystem.
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Governance Changes (Mixed Effects)
New decentralized leadership through DAO elections could either bring stability or cause division. -
Whale Activity & Token Burns (Positive/Negative)
Large holders are buying more, but recent $2.4 million worth of tokens were sold after a security breach. -
Regulatory Support (Positive)
Federal Reserve rate cuts and more crypto ETFs may bring in more investment.
In-Depth Look
1. Governance Changes (Mixed Effects)
Overview:
Shiba Inu is moving toward decentralized governance with Doggy DAO, holding elections for key positions like an interim president. Voting power depends on how many SHIB tokens you hold (1 SHIB = 1 vote), which favors big holders. This could build community trust but also risks concentrating power among a few.
What this means:
If the transition goes smoothly, it might attract institutional investors. But disagreements or delays could cause price swings. Similar governance changes in meme coins like Dogecoin have led to price moves of 15–30% up or down.
2. Whale Activity & Token Burns (Positive/Negative)
Overview:
Whales control about 41% of SHIB’s supply, which can affect liquidity. Recent trends are mixed:
- Positive: Large transactions increased by 870% (MEXC News).
- Negative: After a $2.4 million exploit, a large amount of ETH and SHIB was moved out of Shibarium’s bridge (Bitget).
At the same time, SHIB’s burn rate jumped 1,680% weekly, but with over 589 trillion tokens in circulation, this has limited impact on scarcity.
What this means:
Price rallies driven by whales can be unstable. For example, a 350% increase in transactions in July 2025 was followed by a 15% price drop when whales sold to take profits. To really affect SHIB’s value, burns need to exceed 5 trillion tokens per month.
3. Regulatory Support (Positive)
Overview:
The Federal Reserve’s rate cut in September 2025 (Cryptomus) and easier approvals for crypto ETFs like Grayscale’s Ethereum funds suggest more liquidity for the market. While SHIB’s inclusion in ETFs is not confirmed, it’s possible in the future.
What this means:
Lower interest rates often lead to altcoin price increases, like SHIB’s 900% rise after 2020 stimulus. However, SHIB doesn’t have the same institutional backing as Bitcoin, which limits its growth potential compared to bigger cryptocurrencies.
Conclusion
SHIB’s future depends on balancing meme-driven excitement with real improvements in its ecosystem. Governance changes and easier access to investment money could help, but whale control and security issues like the Shibarium exploit remain concerns. Will SHIB’s token burns outpace its huge supply in a volatile market? Keep an eye on whale activity and Shibarium’s total value locked (TVL) for signs of where SHIB is headed.
What are people saying about SHIB?
The Shiba Inu (SHIB) community is caught between hopeful excitement and the realities of market trends. Here’s what’s happening right now:
- A double-bottom chart pattern is raising hopes for a 70% price jump
- Big investors selling off SHIB coins are creating pressure, but new buyers are stepping in
- The Shibarium network upgrade is boosting confidence in SHIB’s future
In-Depth Look
1. Technical analyst @johnmorganFL sees a breakout pushing SHIB to $0.000016
“SHIB might jump 30% to $0.000016 thanks to a falling wedge pattern. Whale transactions have surged 870%, and $3.4 million worth of SHIB has moved off exchanges.”
– @johnmorganFL (22.1K followers · 18.4K impressions · August 5, 2025)
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What this means: This is a positive sign because coins leaving exchanges usually means investors are holding, not selling. But for this pattern to hold, trading volume needs to stay strong.
2. CoinMarketCap Community warns of a possible drop if SHIB falls below $0.000012
“If SHIB drops below $0.000012 (the 50 and 100-day moving averages), it could fall 25%. Futures trading interest has dropped 35% to $212 million since July 22.”
– CoinMarketCap Community (August 10, 2025)
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What this means: There’s growing selling pressure as traders reduce their bets, making $0.000012 a critical support level. If SHIB falls below this, prices could drop significantly.
3. @DexCheck_io reports growing wallet activity amid Shibarium upgrades
“6,500 new wallets bought SHIB in 24 hours despite a price dip. Network activity is increasing as Shibarium’s automatic coin-burning feature goes live.”
– @DexCheck_io (89.3K followers · 12.7K impressions · July 29, 2025)
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What this means: This is a cautiously optimistic sign. More wallets suggest growing interest, but long-term success depends on Shibarium being useful beyond just trading.
Conclusion
The outlook for SHIB is mixed. Big investors selling coins are putting downward pressure, but upgrades to the Shibarium network are encouraging some optimism. The key price level to watch is $0.000012—holding above it could spark a rally, while falling below might lead to bigger losses. Keep an eye on trading volume and network activity for clues on what’s next.
What is the latest news about SHIB?
Shiba Inu is balancing important security improvements with progress on regulatory approval, while token burns are helping create scarcity. Here’s the latest update:
- Shibarium Security Update (September 21, 2025) – Bridge operations limited after a $2.4 million hack.
- SEC Approves Path for SHIB ETF (September 19, 2025) – Faster approval process hints at easier institutional access.
- Burn Rate Jumps 1,680% (September 12, 2025) – Token scarcity efforts face pressure from large holders selling.
In-Depth Look
1. Shibarium Security Update (September 21, 2025)
What happened:
Shibarium’s cross-chain bridge was hit by a $2.4 million flash loan attack. In response, the team quickly restricted bridge functions, rotated validator keys, and started monitoring attacker wallets in real time. Hackers stole over 1.5 billion SHIB and ETH tokens, but the team froze the hackers’ short-term staking activities.
What this means:
In the short term, this is negative because the hack caused selling pressure. However, the quick response and security upgrades are positive signs for the future. Improved multi-signature controls and more decentralized validators could help restore trust in Shibarium’s Layer-2 network. (Bitget)
2. SEC Approves Path for SHIB ETF (September 19, 2025)
What happened:
The U.S. Securities and Exchange Commission (SEC) approved Grayscale’s Ethereum ETFs under a new rule (8.201-E). This creates a faster, standardized approval process that could apply to SHIB and other altcoins, potentially allowing SHIB ETFs by late 2025 or early 2026.
What this means:
This is a neutral to positive development for SHIB. While no SHIB ETF has been officially approved yet, being included in the SEC’s streamlined process shows growing regulatory acceptance. However, the fact that Cardano was excluded suggests the SEC’s criteria are still selective, meaning SHIB’s path to approval isn’t guaranteed. (Bitget)
3. Burn Rate Jumps 1,680% (September 12, 2025)
What happened:
The rate at which SHIB tokens are being burned (permanently removed from circulation) surged by 1,680% in one week, eliminating 22.65 billion tokens worth about $265,000. This coincided with a 3% price increase to $0.000013. However, large holders (whales) sold about $700,000 worth of SHIB, limiting price gains.
What this means:
If the burn rate stays high, it could help reduce supply and ease selling pressure, which is good for price stability. But since whales have reduced their holdings by 14% since July and daily trading volume is relatively low ($267 million), price swings are likely driven more by smaller investors. Token burns alone may not be enough to overcome broader market challenges. (XT Blog)
Conclusion
Shiba Inu is facing a balancing act: security improvements and the potential for an ETF listing are positive signs, but large holders selling and flat prices create challenges. With Shibarium’s security tested and token burns increasing, SHIB’s future depends on whether it can turn its viral popularity into lasting real-world use. Keep an eye on upcoming ETF filings and whether token burns can outpace whale sell-offs in the last quarter of 2025.
What is expected in the development of SHIB?
Shiba Inu is focusing its development efforts on governance, artificial intelligence (AI), and infrastructure improvements.
- DAO Governance Expansion (Q4 2025) – Introducing elections and multi-voting systems to make leadership more community-driven.
- Shib Alpha Layer Launch (2026) – A new Layer-3 blockchain designed for faster transactions, better privacy, and easier interaction between blockchains.
- AI Integration through JUL-AI Initiative (Ongoing) – Developing AI tools with partners and publishing a technical paper to explain their use.
In-Depth Look
1. DAO Governance Expansion (Q4 2025)
What’s happening:
Shiba Inu plans to hold elections for new leadership roles and councils within its Decentralized Autonomous Organization (DAO). This means the community will have more control over decisions. They are also improving voting methods, including staking tokens, using ERC-20 tokens, and quadratic voting, which helps balance voting power. Additionally, they’re adding features for community discussions and proposal submissions (U.Today).
Why it matters:
This move could build more trust and attract developers by giving the community a stronger voice. However, if voting systems take longer to finalize or if not many people participate, progress could slow down.
2. Shib Alpha Layer Launch (2026)
What’s happening:
In partnership with ElderLabs, Shiba Inu is developing a Layer-3 blockchain called the “rollup abstraction stack.” This technology aims to make transactions almost instant, improve privacy, and allow users to pay transaction fees using stablecoins (cryptocurrencies designed to keep a stable value). Some advanced features like Fully Homomorphic Encryption (FHE), which enhances security, and RollApp access are still being developed (CoinMarketCap).
Why it matters:
This upgrade could make Shiba Inu more useful and scalable. However, its success depends on how many developers adopt it. It also faces competition from other blockchain solutions like Ethereum’s Layer-2 platforms such as Arbitrum.
3. AI Integration through JUL-AI Initiative (Ongoing)
What’s happening:
Shiba Inu’s lead developer, Shytoshi Kusama, is working with TokenPlayAI and Astra Nova to bring AI capabilities to Shibarium, Shiba Inu’s blockchain platform. A detailed technical paper explaining how AI will be used is expected by late 2025 (CoinMarketCap).
Why it matters:
If successful, AI tools could set Shiba Inu apart from other meme coins by adding real-world utility. However, the timeline is uncertain, and the partnerships are still unproven, which adds some risk.
Conclusion
Shiba Inu is shifting from being just a meme coin to focusing on real technology improvements, especially in governance, blockchain infrastructure, and AI. The project’s success will depend on delivering these upgrades while competing with other blockchain platforms and keeping its community engaged. The big question remains: will these changes help Shibarium become more than just a speculative asset and offer lasting value?
What updates are there in the SHIB code base?
Shiba Inu’s latest updates focus on improving security, adding tools for decentralized finance (DeFi), and integrating artificial intelligence (AI).
- LEASH v2 Migration (August 25, 2025) – Upgrades LEASH token to a fixed supply with secure, audited contracts and a burn-to-claim system.
- Shibarium Developer Hub (July 28, 2025) – A centralized resource with documentation and software tools for building cross-chain DeFi applications.
- JUL-AI Initiative Launch (July 3, 2025) – Introducing AI features into Shibarium’s Layer-2 blockchain infrastructure.
Deep Dive
1. LEASH v2 Migration (August 25, 2025)
Overview: LEASH v2 fixes previous security issues by moving away from a complex “rebase” model to a fixed supply of 107,646 tokens. Token holders can migrate their old LEASH tokens through the official site, shib.io. There are no presales or third-party sales involved.
The upgrade includes a thorough security audit and a bug bounty program to catch vulnerabilities early. A “burn-to-claim” system means users must destroy their old LEASH tokens to receive the new version, ensuring fair distribution.
What this means: This is positive news for Shiba Inu (SHIB) because it reduces the risk of scams and helps stabilize LEASH’s value. (Source)
2. Shibarium Developer Hub (July 28, 2025)
Overview: The new Developer Hub brings together all the guides and tools developers need to run validator nodes, perform cross-chain token swaps, and integrate with ShibaSwap versions 1 and 2. It offers plugins for Hardhat (a popular Ethereum development environment) and software development kits (SDKs) for managing liquidity pools.
New features like Shiba Paymaster make it easier to handle transaction fees, while Bury 2.0 simplifies staking across SHIB, BONE, and LEASH tokens.
What this means: This update mainly benefits developers rather than everyday users, so its immediate impact on SHIB’s price is neutral. However, it could help grow the Shiba Inu ecosystem if more developers start building on Shibarium. (Source)
3. JUL-AI Initiative Launch (July 3, 2025)
Overview: Shytoshi Kusama, a key figure in the Shiba Inu project, announced a month-long rollout of AI-powered tools designed specifically for Shibarium. This includes a whitepaper explaining how AI will be integrated with privacy protections.
Partnering with TokenPlayAI, the initiative aims to automate DeFi processes and improve the efficiency of smart contracts on Shibarium.
What this means: This is a promising development for SHIB because it moves the project toward practical, technology-driven uses. It could attract interest from larger investors and institutions. (Source)
Conclusion
Shiba Inu’s recent updates focus on enhancing security (LEASH v2), supporting developers (Shibarium Developer Hub), and expanding AI capabilities (JUL-AI Initiative). While these changes might not immediately affect SHIB’s price, they set the stage for long-term growth and utility beyond its original meme coin status. The big question remains: will AI integration help Shibarium compete with other Layer-2 blockchains like Base and Solana?