Shiba Inu Investors Pivot to Emerging DeFi and Layer 3 Projects Amid Market Downturn

Dec 6, 2025, 11:15 a.m. 5 sources neutral

The cryptocurrency market is witnessing a significant rotation of capital from established meme coins to nascent utility-focused projects. Early buyers of Shiba Inu (SHIB), which once delivered astronomical returns, are now shifting their investments as SHIB's price has declined to levels not seen since late 2023, limiting its explosive growth potential due to its large market capitalization.

One primary destination for this capital is Mutuum Finance (MUTM), a decentralized lending protocol. The project's presale Phase 6 is 97% complete, having raised $19.1 million from over 18,300 holders. The MUTM token, which began its presale at $0.01 in early 2025, now trades at $0.035—a 250% increase ahead of its V1 protocol launch, which is set at $0.06. Analysts project potential post-launch gains of 500% to 900%, driven by its utility-focused model that generates yield from real on-chain borrowing activity and plans for a native stablecoin and multi-layer-2 deployment.

Simultaneously, investor attention is turning to LiquidChain and its LIQUID token, a cross-chain Layer 3 solution aiming to unify liquidity and execution across Bitcoin, Ethereum, and Solana. The project seeks to solve ecosystem fragmentation by creating a trust-minimized, unified execution environment, thereby eliminating the need for traditional bridges. Its presale includes a staking mechanism with rewards distributed over one year.

Analysts contrast the modest, sentiment-driven prospects of SHIB with the foundational utility and growth potential of projects like Mutuum Finance and LiquidChain, suggesting this capital rotation is a search for structural value and higher upside during a broader market pullback.

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