$SHIB $SHIB

Shiba Inu Price Prediction: SHIB Burn Rate and TVL Skyrocket But Investors Are Buying This Coin Instead

Shiba Inu (SHIB), the popular meme coin that once captured the imagination of the crypto community with Dogecoin-style virality, is making headlines again. Recent data shows a surge in SHIB's burn rate and a notable increase in its Total Value Locked (TVL) on decentralized platforms. Yet despite these bullish on-chain signals, investor behavior suggests a shift in momentum—capital is flowing elsewhere.

So what’s going on with SHIB? And why are investors pivoting toward a different crypto project? Let's break it down.

SHIB Burn Rate Explodes: Deflation on the Rise

According to on-chain tracking services, Shiba Inu's burn rate has skyrocketed by over 800% in the past week. Over 1.2 billion SHIB tokens were sent to dead wallets, permanently removing them from circulation.

The increased burn rate is a result of both automated protocols and community-driven burn events, which aim to create scarcity and potentially push the price upward. SHIB’s lead developer, Shytoshi Kusama, has continued to emphasize deflationary mechanics as a core part of the project’s long-term value proposition.

Why the Burn Rate Matters

Reduces supply: A higher burn rate decreases circulating supply, theoretically increasing token value if demand holds steady.

Investor sentiment: Burn events often trigger temporary price surges as traders speculate on future scarcity.

Total Value Locked (TVL) in Shibarium Surges

Another promising indicator is the growing TVL in Shibarium, Shiba Inu’s layer-2 blockchain built on Ethereum. The TVL has jumped over 40% in the last month, signaling increased usage of SHIB-based DeFi applications, such as staking, liquidity pools, and decentralized exchanges.

This uptick suggests that Shibarium is gaining traction among developers and users. However, critics point out that SHIB still lacks strong utility compared to larger DeFi ecosystems like Ethereum or Solana.