Shiba Inu burns collapse as large SHIB burns dry up — supply pressure returns
Shiba Inu (SHIB) token burn activity has collapsed: recent data show daily burns plunging from millions/billions to under one million SHIB, with the largest single burn around ~699,000 SHIB. A prior spike in percentage terms reflected a low baseline rather than sustained deflationary pressure. Ecosystem mechanisms — ShibaSwap, Shiba Eternity, the burn portal and Shibarium’s fee-burn model — have removed only modest amounts; total circulating supply remains extremely large at about 589.24 trillion SHIB, despite roughly 410.75 trillion previously sent to dead wallets (notably Vitalik Buterin’s donation). Weekly and multi-day burn momentum has weakened sharply, undermining a key scarcity narrative that many traders viewed as a medium-to-long-term bullish driver. Price action has been weak recently (SHIB trading near multi-week lows), and traders should treat headline burn-percentage gains with caution — absolute burn volumes are small and unlikely to produce immediate bullish price shocks. Key trader takeaways: monitor exchange flows, Shibarium and portal burn updates, and support levels (near the ~$0.000007 area); the dwindling burn momentum reduces a potential supply-side catalyst, suggesting lower probability of sustained bullish moves unless burn volumes or demand materially increase.
Bearish
The collapse in burn volumes removes a prominent supply-side narrative that could have supported SHIB prices over the medium to long term. Absolute daily burns now sit well below levels that would materially reduce the enormous circulating supply (≈589.24 trillion SHIB). With ecosystem burn mechanisms underperforming and no evidence of a sustained increase in demand, the immediate effect is neutral-to-bearish: diminished expectation of future scarcity reduces bullish conviction. Short-term price moves may still be driven by macro factors and exchange flows, but absent a renewed, persistent rise in burn activity or sharply increased buying pressure, the imbalance between massive supply and modest burns makes sustained price appreciation less likely. Traders should therefore expect increased downside risk or range-bound action until on-chain burn metrics or demand signals change materially.