Shiba Inu's Burn Rate Increases Significantly! But Will SHIB Follow?

The Shiba Inu community celebrated a dramatic 1,900 percent jump in the meme coin’s burn rate this week, erasing more than 13.5 million SHIB from circulation in a single day. Ordinarily, shrinking supply is a bullish catalyst—yet the price slipped below $0.0000114 and market cap fell to $6.66 billion. 

Why didn’t the market bite? This article unpacks the numbers behind the burn frenzy, dissects bearish chart patterns, and weighs whether a turnaround is realistic in the near term.

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Burn Rate Bonanza, Price Malaise

Data from Shibburn shows the largest daily incineration in weeks, but the seven‑day burn tally is actually down nearly 20 percent to 552 million SHIB. The spike looks more like a one‑off than a sustained trend, leaving traders skeptical that deflation alone can offset wider market headwinds.

In parallel, SHIB relinquished almost 4 percent in 24 hours. Such divergence—supply contracting while price contracts—suggests investor focus has shifted from tokenomics to macro conditions and risk appetite.

Descending Triangle Signals Pressure

On the daily chart, SHIB continues to carve out a descending triangle, a pattern that often precedes breakdowns. Lower highs press against horizontal support around $0.0000111. Should that floor crack, chartists warn of a potential 50 percent slide toward $0.0000054.

Momentum indicators reinforce caution. The Relative Strength Index hovers under 40, confirming sellers dominate. Meanwhile, price sits far below the 50‑day Simple Moving Average at $0.0000169—momentum that bulls must overcome before any sustained rally can form.

MVRV and On‑Chain Pain

Glassnode’s Market Value to Realized Value (MVRV) ratio recently flashed a “death cross,” indicating many short‑term holders are underwater. Historically, negative MVRV can precede capitulation as investors cut losses, applying fresh downward pressure.

Adding to the gloom, Shibarium—the Layer‑2 scaling network designed to expand SHIB utility—has seen its Total Value Locked shrink from May’s $3.14 million to $1.89 million, a near‑50 percent drawdown in six weeks. Less capital on‑chain means fewer opportunities for yield and utility, dampening long‑term enthusiasm.

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Macro Drag on Meme Coins

Beyond project‑specific metrics, the broader crypto market is navigating a risk‑off phase driven by hawkish central‑bank signals and thinning liquidity. In such climates, traders rotate out of high‑beta assets—meme coins top that list—and into blue‑chip tokens or stablecoins.

SHIB’s 24‑hour volume of $127 million underscores this caution: liquidity is present but skittish. Without fresh catalysts or broader market relief, any burn‑led rallies may prove fleeting.

Can Burns Still Ignite a Rally?

Deflationary mechanics remain a pillar of the Shiba Inu roadmap. However, for burns to influence price meaningfully, they must be both sizable and consistent. One‑day surges create headlines but rarely shift multi‑billion‑dollar valuations on their own. What could flip the script? A combination of accelerated, sustained burns, Shibarium usage upticks, and a macro risk‑on reversal.

Until then, SHIB holders may need patience—and prudent risk management—as the token navigates technical and fundamental resistance.

Conclusion

Shiba Inu’s latest burn spike highlights the community’s commitment to scarcity, but the market is demanding more than symbolic fire. With bearish indicators dominating the charts and on‑chain participation waning, SHIB’s path to recovery depends on a confluence of consistent burns, revived ecosystem activity, and a friendlier macro backdrop. For now, investors should temper expectations and watch key support at $0.0000111—because if that gives way, the burn rate alone won’t stop the slide.

READ ALSO: Shiba Inu Burn Rate Increasing! Will This Be the Start of Its Bull Market?

FAQs

1. What does a high SHIB burn rate mean?

It means more tokens are being permanently removed from circulation, which can reduce supply and potentially increase value—but only if demand rises too.

2. Why didn’t the SHIB price rise despite the 1,900% burn spike?

Because the burn wasn't sustained and market sentiment remains bearish. Other factors like weak macro conditions and low on‑chain activity also weigh heavily.

3. What is the key support level SHIB investors should watch?

$0.0000111 is the critical support zone. A drop below this could trigger a significant downward move.

4. Is Shibarium’s slowdown affecting SHIB’s price?

Yes, reduced activity and TVL on Shibarium signal weakening ecosystem engagement, which can dampen investor confidence and utility-driven demand.

5. Can SHIB still recover this year?

It’s possible—but would require sustained token burns, revitalized use of Shibarium, and a broader crypto market rebound.