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- SHIB burn rate dropped 90.95%, sparking supply concerns.
- Price holds at $0.00001250 but remains weak over the month.
- Futures traders face nearly $1M in potential liquidations.
Shiba Inu (SHIB), one of the leading meme-inspired cryptocurrencies, is under renewed selling pressure after its burn rate fell sharply in the past day. Data from Shibburn shows a steep 90.95% decline, with only 139,099 SHIB tokens destroyed across three transactions. This sharp slowdown has raised concerns among investors who view token burning as a key driver of long-term value.
Shiba Inu’s massive circulating supply — currently at 589 trillion — makes burn activity crucial for boosting price appreciation. The reduced burn momentum could weigh on sentiment, as fewer tokens are being permanently removed from circulation.
Price Action Shows Fragile Recovery
Despite the bearish headwinds, SHIB has shown resilience in recent sessions. After hitting a multi-week low of $0.00001206, the token rebounded to $0.00001267 before retracing slightly to $0.00001250. At press time, Shiba Inu is up 1.57% over the last 24 hours, though it remains down 8.15% on the week and 16.36% over the month.
Trading activity has also cooled, with daily volume slipping 3.08% to $197.77 million. Analysts note that this slowdown could indicate weakening retail participation in the short term.
Futures Traders Face Liquidations
The volatile price swings have also impacted derivatives markets. Shiba Inu futures traders saw $87,450 in liquidations over the past day, with shorts losing $49,990 and longs $37,450. Market data suggests that if SHIB climbs to $0.000013, short positions could suffer liquidations totaling $746,520. Conversely, if the price dips below $0.000012, long traders risk $919,610 in losses.
Community Optimism Remains
While near-term sentiment appears shaky, some community experts remain confident in Shiba Inu’s recovery potential. Analyst MMB Trader projects a rally toward $0.00007716, citing technical patterns and historical market behavior. Still, many believe a sustainable rebound will depend heavily on renewed burn activity and broader market recovery.
Shiba Inu’s sharp decline in burn rate highlights ongoing challenges in reducing supply and sustaining momentum. Although the token has staged a modest bounce, weak trading activity and liquidation risks suggest near-term volatility will remain elevated. For long-term investors, the return of consistent burn activity may be the key to reversing bearish pressure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
