Key Takeaways
- Shiba Inu’s burn rate dropped by 8.62% in 24 hours, raising concerns about its deflationary momentum and potential short-term price weakness.
- A whale transferred $31 million worth of SHIB to Coinbase Institutional, triggering speculation of a major sell-off and adding to market uncertainty.
The Shiba Inu (SHIB) ecosystem is showing signs of instability, with a significant drop in the token’s burn rate and a mysterious whale movement raising eyebrows among traders. While SHIB’s price is up slightly, underlying metrics hint at possible near-term volatility.
Burn Rate Declines by Over 8%, Raising Market Concerns
According to data from Shibburn, Shiba Inu’s daily burn rate plummeted by 8.62% over the last 24 hours, with only 4.5 million SHIB sent to dead wallets. This marks another steep downturn in the memecoin’s deflationary efforts, continuing a trend that began in early May. At one point in mid-May, the burn rate even dropped to zero after a prior surge.
Token burns are integral to SHIB’s supply reduction strategy, aimed at increasing scarcity and boosting price. With fewer tokens being destroyed, market participants fear weakening support for price growth. Analysts warn that the ongoing slump in burn activity could lead to increased selling pressure in the short term.
Whale Transfers $31 Million in SHIB to Coinbase Institution
Fueling further market anxiety, blockchain tracker Whale Alert reported that an unidentified wallet transferred approximately 2.5 trillion SHIB — worth around $31 million — to Coinbase Institutional. This transaction is widely interpreted as a potential prelude to a major sell-off.
🚨 🚨 2,542,712,471,794 #SHIB (31,651,684 USD) transferred from unknown wallet to Coinbase Institutionalhttps://t.co/SZEeT7y5Yj
— Whale Alert (@whale_alert) June 6, 2025
The move suggests institutional involvement, though traders remain split on the intent: liquidation or liquidity repositioning. Historically, such large transfers to exchanges often signal an imminent dump, especially when paired with a declining burn rate and broader market uncertainty.
Also Read: Shiba Inu Drops to $0.000012 as Whale Sells $1.2M SHIB
Price Defies Gravity — For Now
Despite these bearish indicators, SHIB’s price has shown surprising resilience. At press time, the token is trading at $0.00001286, up nearly 2% in the last 24 hours. This modest gain comes amid high transaction volumes, reflecting elevated trader activity and speculative interest.
Still, with the burn mechanism faltering and whale behavior triggering alarm bells, analysts caution that SHIB may struggle to maintain its current price levels. Without the implementation of a consistent, automatic burn system, Shiba Inu risks continued volatility as it faces mounting pressure from both within and beyond its community.
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.
