Shiba Inu (SHIB) big dump warning: Unclosed contracts evaporated over 100 million USD, Shibarium TVL exhausted, can the Burn Mechanism turn the tide?

Shiba Inu (SHIB) has recently been hit hard, with the open interest (OI) in the derivatives market plummeting over 100 million USD in just a few days, and the price falling nearly 5% in 24 hours, with a weekly decline of 9%. Its highly anticipated layer 2 network Shibarium has seen its Total Value Locked (TVL) severely shrink to 1.76 million USD, down over 70% from its peak. Market confidence in Meme coins has cooled, and investors are questioning whether token burning alone can reverse the trend, as the SHIB ecosystem faces a severe liquidity test.

Unclosed contract ( OI ) experiences a big dump, market confidence is shaken Data shows that the open contract amount of SHIB has sharply shrunk from $328 million on July 22 to the current $206 million, evaporating over $100 million (approximately $100 million) in just a few days, marking the most severe capital outflow since mid-July. This key derivation indicator has plummeted, clearly reflecting the collapse of traders' short-term bullish expectations for SHIB, with a large number of positions being quickly closed and bearish sentiment prevailing in the market.

Coin price synchronously declines, weekly drop expands Due to the outflow of funds from the derivation market, the spot price of SHIB has fallen correspondingly. On July 30, the price of SHIB dropped to $0.00001266, with an intraday decline of nearly 5%, and expanded the weekly decline to 9%. This drop resonates with the sharp reduction in open contracts, indicating that both the spot and contract markets are under pressure.

Shibarium TVL has dried up, and the ecological utility is being questioned The Shibarium network, a second-layer solution aimed at enhancing the utility of SHIB, is in a worrying state. Its Total Value Locked (TVL) has currently fallen to just $1.76 million, a decrease of over 70% compared to its peak at the end of 2023, facing severe liquidity exhaustion. The continued decline in TVL exposes the core issue facing the Shibarium ecosystem: low developer and user engagement, with funds accelerating towards competing public chains that can offer higher returns or clearer utility.

Deep Pressure: The burning mechanism struggles alone, market preferences shift The evaporation of 100 million USD in open contracts can be seen as a "vote of no confidence" in the short-term prospects of SHIB. Although SHIB still has a 10% monthly increase, the rapid withdrawal of funds indicates that traders no longer see it as a reliable short-term target. The deeper pressure lies in:

1. Ecosystem Weakness: The SHIBarium TVL has experienced a big dump of 70%, severely undermining its narrative as the "utility bridge" for SHIB.
2. Historical Burden Heavy: The SHIB price is still 85% below its historical peak, and the road to recovery is long.
3. Market Logic Change: Current cryptocurrency investors pay more attention to fundamentals (such as Ethereum L2 adoption, Solana's high-performance facilities), or choose new Meme coins with more aggressive token economics. SHIB overly relies on the token burning mechanism to stimulate prices, which seems inadequate in the current market environment. Reducing supply is only effective when demand is stable, and the current market clearly believes that "scarcity" alone is no longer sufficient.

Conclusion: SHIB is facing a triple blow from the sharp reduction in open contracts, the drop in coin price, and the depletion of Shibarium TVL. The accelerated outflow of funds and the stagnation of ecological development have posed severe challenges to its reliance on the token burning narrative. In the current environment where the overall sentiment towards Meme coins is cooling and the market values actual utility and fundamentals more, whether SHIB can find a new growth engine in the coming months and prove its value beyond mere Meme attributes will be key to determining its fate. Investors need to closely monitor changes in on-chain data and ecological progress, and be wary of the deepening risks of liquidity crises.