Foreign media reports that Chai Dog Coin SHIB briefly recovered to $0.000006 this week, but soon fell back to around $0.000005. The article suggests that the price failed to stabilize in the key range, and coupled with a significant decline in the lock-up volume of Shibarium, this type of highly volatile asset is once again facing downward pressure.
Shibarium The number of locked positions has declined significantly within a few days
The data cited in the text, marked as DefiLlama, indicates that the total locked-up value of Shibarium (denoted as TVL) has fallen by approximately 74% over a few days. The network's locked-up capital once exceeded $120,000, but subsequently dropped to around $31,000.
TVL A decline usually indicates a reduction in on-chain activity, capital accumulation, or user engagement. For meme coins that are already dependent on market sentiment, such changes in data can easily amplify short-term fluctuations.
Bitcoin's decline drags down high-risk tokens
The article also mentions that the broader crypto market is cooling down, with Bitcoin having fallen back to around $79,000. The previous market rebound was partly driven by the increased liquidity brought about by the U.S. Treasury Department's expansion of bond repurchases, which benefited risk assets.
However, the article argues that such liquidity support may not be sustainable. If fiscal funds flow back and market liquidity tightens, high-risk tokens like SHIB may face greater selling pressure than mainstream assets.
Interest rate expectations remain an additional source of pressure.
The article also points out that inflation in the United States remains above the Federal Reserve's target of 2%, which means there are still uncertainties regarding the interest rate path for the year. If interest rates remain high or even further increase, it is usually likely to suppress the performance of high-risk assets.
However, the article also mentions that some Wall Street institutions are optimistic about Bitcoin returning to $100,000 within this year. If Bitcoin strengthens again, the price of SHIB may be driven upward, and there will be a chance to challenge the $0.00001 mark once more.
