SHIB Investors Face 65% Collapse as Burn Drops and Shibarium Slows
Shiba Inu (SHIB) is under renewed pressure after a 65% yearly collapse. The token trades around $0.000004697 and sits below a $3 billion market cap, making it the 36th-largest crypto. Since its 2021 all-time high, SHIB is down nearly 95%.
Fundamentals and activity have weakened. SHIB trading volume fell 84% over the last 12 months, reflecting fading interest in meme coins. The SHIB burn rate dropped 71% over the past week, leaving ~590 trillion tokens still in circulation despite the community burning over 40% since launch.
Project momentum also looks stalled. Shiba Inu’s L2 scaling network, Shibarium, initially supported millions of daily transactions, but an exploit last year sharply reduced activity.
Despite the bearish backdrop, SHIB’s technical setup is mixed. The Relative Strength Index (RSI) is below 30, signalling oversold conditions and raising the possibility of a short-term rebound.
Writer: Dimitar Dzhondzhorov (CryptoPotato).
Bearish
The article highlights multiple bearish drivers for SHIB: a deep 65% yearly drawdown, an 84% drop in trading volume, a 71% weekly decline in burn rate, and reduced Shibarium activity after an exploit. These factors typically correlate with weaker bid support and liquidity, making breakouts harder and pullbacks more likely.
However, it also notes RSI below 30 (oversold), which can spark short-term mean-reversion rallies—similar to past meme-coin selloffs where oversold conditions temporarily attract dip buyers. In the short term, SHIB could bounce on momentum/oversold positioning. In the long term, unless volume stabilizes and Shibarium usage improves, the supply/burn narrative and user-activity concerns may cap rallies and keep traders focused on downside risk management.