Shiba Inu Slips 5%+ as Market Cools and Burn Activity Stalls

What’s happening: As of recent trading hours, Shiba Inu (SHIB) has dropped over 5.7% in 24 hours, significantly underperforming the broader cryptocurrency market’s 0.8% decline. While the overall market is experiencing headwinds, SHIB’s steeper pullback points to mounting pressures specific to the token itself.

The Broader Market Context

Cryptocurrency markets are showing weakness across the board, with speculative assets taking the heaviest hits. Meme coins like Shiba Inu naturally amplify market swings—when risk-on sentiment dominates, they can skyrocket; when bearish sentiment takes over, they fall harder than most. Today’s move reflects the latter scenario, with bearish momentum overwhelming the sector and investors trimming positions across high-volatility plays.

The Real Problem: Shiba Inu’s Supply Crisis

Beyond macro market dynamics, a more persistent challenge is weighing on SHIB investors right now: the token’s massive circulating supply of 589.4 trillion units.

This enormous token count creates a structural headwind. As the network’s market cap gets divided across hundreds of trillions of tokens, each unit represents a tinier slice of ownership. Historical token issuances have diluted existing holders continuously, applying constant downward pressure on price appreciation.

The Burn Mechanism That’s Gone Quiet

The Shiba Inu community has been banking on token burns as the primary solution to reduce supply and reignite price momentum. Over 400 trillion tokens have been permanently removed from circulation through this mechanism—a notable achievement.

However, here’s the concern: according to recent data, Shiba Inu’s daily token burn rate has hit zero in the short term. This stall in burn activity, combined with intensifying liquidation cascades and strengthening bearish market sentiment, has darkened SHIB’s near-term outlook considerably.

The Takeaway

Shiba Inu’s recent decline reflects both macro headwinds affecting the entire crypto sector and token-specific friction around supply dynamics. Until burn activity resumes and broader market sentiment shifts, expect volatility to remain elevated. Community members should keep a close eye on burn metrics as a potential inflection point for renewed upside momentum.