$58.7 Million Shiba Inu Locked, What’s Next For SHIB Price?

Since its iteration in 2021, Shiba Inu has continued to break major grounds in the DeFi space as investors’ interests continue to grow to new heights. Notably, the amount of SHIB staked since its emergence has surged to over 4.6 trillion, according to data from Shibburn.

While SHIB staking is a practice among investors who willingly lock up their SHIB holdings on DeFi platforms as efforts to support the network’s operations, the move reflects growing conviction among holders on SHIB’s potential price trajectory.

The data shows that a massive 4,646,715,230,750 SHIB tokens worth over $58.7 million have been locked on SHIB staking contracts, signaling surging ecosystem participation among SHIB enthusiasts and existing holders.

584 trillion SHIB left in circulation

The growing Shiba Inu staking service contributes to the network’s deflationary system as it serves as an alternative way to reduce the amount of SHIB in circulation, as opposed to the regular burning mechanism.

Amid the growing demand for the dog-themed meme token, investors have continued to lock their SHIB tokens to effectively reduce the circulating supply, a move that can boost the token’s scarcity, thereby exerting upward pressure on its price performance.

Although the meme token has been seen trading sideways over the past days, a notable surge in its staking activities, coupled with a continued decrease in its overall circulating supply, often precedes a notable price reaction.

As of press time, data from CoinMarketCap shows that SHIB is trading at around $0.00001263, showing a notable decline of 9.07% over the past week.

While its price action has remained negative, suggesting increased selling activities among SHIB holders, the surge in its staking activity, coinciding with regular burn activities, suggests a potential breakout if bullish sentiment continues to grow.

Despite the fading momentum experienced across the SHIB ecosystem, investors are still optimistic about a potential rally in SHIB’s price, as token lockups have remained effective in reducing sell pressures.

Nonetheless, price appreciation mostly depends on sustained demand and massive adoption of the token’s utilities; as such, investors are taking caution while trading the token.

Apparently, the spike in SHIB staking reflects growing optimism around the broader Shiba Inu ecosystem and the Shibarium network.