Popular meme cryptocurrency Shiba Inu has officially dropped out of the world’s top 30 cryptocurrencies after months of sustained decline.
The latest week-long downturn has finally impacted Shiba Inu’s standing in the global crypto rankings. As a result, the token slipped to the 31st position, losing its long-held place among the top 30 digital assets by market capitalization.
Shiba Inu Falls Out of Top 30 Crypto
According to data from CoinMarketCap, Shiba Inu is now the 31st-largest cryptocurrency globally. Over the past seven days, the token has fallen by 11.22%, pushing its price down to $0.000004153 and reducing its market cap to approximately $2.44 billion.
As Shiba Inu continued to decline, Tether Gold (XAUT) overtook it to claim the 30th position in the global rankings. Currently, XAUT holds a market cap of $2.48 billion, allowing it to edge past Shiba Inu and secure its position among the top 30 cryptocurrencies.
A Sharp Contrast to Shiba Inu’s Early Success
The development has surprised many investors, especially those who witnessed Shiba Inu’s meteoric rise during the 2021 bull market.
At its peak, Shiba Inu reached an all-time high of $0.00008845 and entered the top 10 cryptocurrencies on several occasions. A few years later, lead ambassador Shytoshi Kusama even expressed ambitions of pushing the token into the top five.
However, the project has since experienced a dramatic reversal. Shiba Inu now trades 95.3% below its all-time high and has declined by 39.84% since the start of the year.
Weak Market Structure Continues to Pressure $SHIB
Meanwhile, Shiba Inu’s broader market structure remains weak, with trading activity indicating a thinning market.
According to CoinGlass data, spot trading volume currently stands at just $10.94 million, significantly below futures volume of $51.41 million. This imbalance suggests that speculative derivatives trading dominates genuine buying demand.
In addition, Shiba Inu’s open interest sits at $30.73 million, indicating moderate leverage exposure but limited conviction from long-term market participants. Although funding rates remain slightly positive at 0.0063%, signaling a mild bullish bias in perpetual futures markets, price action and capital inflows have failed to support that optimism.
Liquidation metrics further reinforce the market’s fragile condition. Over the past 24 hours, total liquidations reached $46,390. Long positions accounted for the majority of those losses at $43,090, while shorts represented just $3,300. The imbalance suggests that bullish traders have borne most of the market’s pain during the latest decline.
Shiba Inu Fundamentals Remain Weak
Despite Shiba Inu’s fall below the top 30 and its deteriorating market structure, supporters continue to attribute the weakness to broader bearish market conditions.
Many believe the token could stage a significant recovery once overall market sentiment improves. However, Shiba Inu’s underlying fundamentals have offered little support for that bullish outlook in recent months.
Critics argue that the Shiba Inu ecosystem appears increasingly abandoned by its leadership team. They point to Shytoshi Kusama’s prolonged silence on social media and his focus on an independent AI initiative as evidence of shifting priorities.
Furthermore, several ecosystem projects that were originally introduced to drive adoption remain incomplete or inactive. These unfinished initiatives include Shib: The Metaverse, Shib Marketplace, and the Layer-3 blockchain Shib Alpha Layer.
Meanwhile, critics consider Shibarium effectively deserted due to its declining on-chain activity. For context, Shibarium currently processes only 787 daily transactions. Moreover, decentralized exchange volume across the network has remained at zero since June 23, while total value locked has dropped to just $170,699.
Token Burns Remain Too Small to Impact Supply
Shiba Inu’s enormous token supply also continues to weigh heavily on price performance. Although the project’s burn mechanism was designed to reduce circulating supply, burn activity has slowed considerably.
Over the past 24 hours, the community burned just 2.41 million $SHIB worth approximately $10. During the last seven days, total burns reached only 19.13 million tokens, while monthly burns amounted to 108.40 million $SHIB.
These figures remain negligible when compared to Shiba Inu’s massive circulating supply of approximately 589 trillion tokens.
Ecosystem Tokens Also Continue to Struggle
The weakness extends beyond $SHIB itself, as other ecosystem tokens have also suffered substantial losses from their previous highs.
According to CoinMarketCap data, Bone ShibaSwap (BONE) has plunged 99.9% from its all-time high, while Doge Killer (LEASH) has effectively erased all of its gains, falling nearly 100% from its peak valuation.
