Shiba Inu’s price continued its steep decline this week, plunging to $0.0000080 its lowest level since November 24 and now down 76% from its peak last December. The memecoin has been unable to recover despite a dramatic spike in token burns.
Massive Burn Spike Isn’t Helping SHIB’s Price
Over the past 24 hours, Shiba Inu’s burn rate surged by an eye-catching 17,225%, with 32.4 million SHIB removed from circulation. The spike was largely due to a single wallet that burned over 30 million tokens.
Despite the impressive percentage increase, the dollar value of the burn was only around $250 far too small to influence the price of a token with a $4.6 billion market cap.
According to ShibBurn:
- 410 billion SHIB have been burned since launch
- The circulating supply still sits at 585 trillion SHIB
The scale of supply makes small burns irrelevant from a pricing perspective, even when the percentage increase looks dramatic.
Multiple Headwinds Are Pushing SHIB Lower
1. Widespread Meme Coin Sell-Off
The entire meme token sector has been under pressure. Coins like DOGE, Pepe, Bonk, Dogwifhat, and Pudgy Penguins have all declined sharply. SHIB is falling in line with sector-wide weakness.
2. Burn Amounts Are Too Small to Matter
Even with a 17,000% increase, the actual burn amount is tiny compared to SHIB’s multi-trillion supply. Burns need to be massive and consistent to materially impact circulation something not happening right now.
3. Smart Money Is Selling
On-chain data from Nansen shows that holdings among “smart money” wallets fell from 43.1 billion SHIB (Nov 30) to 39 billion today. Declining smart money interest typically signals expectations of further downside.
4. Shibarium Is Losing Traction
Shiba Inu’s layer-2 network, Shibarium, is struggling:
- Total Value Locked (TVL) has plunged
- Developer activity has slowed
- User traction has stagnated
The project hasn’t gained the momentum its community hoped for.
5. Declining Investor Interest
SHIB’s popularity is fading. Unlike Dogecoin — which now has multiple spot ETF filings — Shiba Inu has zero ETF applications from major asset managers like Grayscale, Bitwise, or REX-Osprey.
This lack of institutional interest weighs heavily on the long-term outlook.
Technical Indicators Confirm the Bearish Trend
The daily chart shows a clear technical breakdown:
- SHIB formed a descending triangle, a bearish continuation pattern
- Price has broken below the triangle’s lower boundary
- SHIB is trading below the 50-day and 100-day EMAs
- The Supertrend indicator remains firmly bearish
Unless SHIB reclaims key resistance levels, sellers are likely to push the token toward the next major support near $0.0000050.
Bottom Line
Shiba Inu’s price isn’t tanking despite the burn rate soaring it’s crashing because:
- Burn amounts are tiny compared to supply
- Meme coins are broadly selling off
- Smart money is exiting
- Shibarium is struggling
- Technicals are decisively bearish
Until SHIB sees meaningful utility growth, major burns, or renewed investor interest, its downtrend is likely to continue.
