Burns Can't Save SHIB as Utility-Driven Projects Like Polygon and BlockDAG Rise

SHIB has faced persistent downward pressure in recent weeks, with the token failing to break above the $0.00001 level for the first time since early 2023. Analysts attribute this to broader market weakness and a lack of significant on-chain activity. Despite this, SHIB's circulating supply continues to decrease due to burn events, with over 180 billion tokens burned since the start of the year, representing a 12% reduction in total supply.

On the technical front, the price has found support near the $0.0000095 level, raising cautious optimism among long-term investors who see this as a potential accumulation zone.

Meanwhile, Polygon (MATIC) has seen a notable increase in its Total Value Locked (TVL), which rose by 43% month-over-month to reach $2.1 billion as of mid-October 2024. This growth is largely attributed to recent upgrades to the Polygon zkEVM 2.0 and the integration of cross-chain bridges with several Layer 1 blockchains. The surge in TVL has been accompanied by a 15% increase in daily active addresses, signaling renewed developer and user interest. Analysts suggest this trend could position MATIC as a key player in the next phase of Ethereum scaling solutions.

Market analysts have noted that while the broader crypto market remains in a consolidation phase, projects with strong utility and clear use cases—such as BlockDAG and Polygon—are outperforming the market average. In contrast, SHIB’s reliance on social media sentiment and large-scale burn events has limited its ability to maintain long-term value accrual. However, with ongoing efforts to improve network usability and governance, some analysts believe SHIB may see a resurgence if the broader market improves.

The performance of these tokens highlights the current market dynamics, where utility-driven projects are gaining traction amid reduced speculative trading. As the crypto market continues to evolve, projects that demonstrate real-world adoption and measurable improvements in infrastructure are likely to remain top performers in the coming months.

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