Shiba Inu (SHIB) Burn Rate Spikes Briefly Amid Bearish Market Trends

Shiba Inu (SHIB), one of the leading meme tokens, is facing mounting pressure as major cryptocurrencies continue trading in the red. Although SHIB’s burn rate surged by 679.55% in the past 24 hours, weekly figures show a sharp 82.58% decline, according to data from Shibburn. Over the past seven days, only 187.4 million SHIB tokens were burned, bringing the total circulating supply to roughly 584 trillion.

This downturn in token burns has sparked speculation among investors, with many questioning if the SHIB team is scaling back its previously consistent burn campaigns. The decline may reflect waning interest or a drop in on-chain activity tied to SHIB’s ecosystem utility. As market sentiment remains bearish, the lack of strong community engagement could continue to weigh down the token’s performance.

Interestingly, despite the slump in burn activity, data from U.Today shows a 784.8% spike in large holder net flows, suggesting whales may be quietly accumulating SHIB. However, this accumulation hasn't provided enough bullish momentum to lift the price. SHIB has dropped 7.06% in the past 24 hours and is currently trading at $0.00001063.

Further complicating the outlook, only 5% of SHIB holders are currently in profit, reflecting poor profitability metrics and heightened investor anxiety. Although the ecosystem continues to develop, broader market weakness appears to be the main driver behind SHIB’s recent struggles.

With declining burn rates, reduced profitability, and low engagement, concerns over SHIB’s short-term future are growing. Unless market sentiment shifts or a new catalyst emerges, the meme coin may continue facing downward pressure.