SHIB burn rate plunges 99% as price and volume spike amid weak tokenomics
Shiba Inu (SHIB) saw its burn activity collapse—on-chain tracker Shibburn reported only 483–777,777 SHIB sent to dead wallets across the two updates—effectively a ~99% drop in reported burns versus prior periods. Despite negligible burns, SHIB posted a short-term price rebound (roughly +1.7% to +1.67% in later reports) and trading volume rose double-digits (around +12–14.5%, volumes between ~$145M and ~$180M). Circulating supply remains enormous (~585.42–585.46 trillion SHIB), meaning small burn events have limited impact on tokenomics. Recent weakness over 30 days (~28.9% decline) left SHIB oversold, likely contributing to the brief recovery, but analysts flagged technical risk: earlier reports noted breaks below key support and potential for large downside unless burn activity or buy-side demand returns. Spot flows spiked sharply but did not reverse the downtrend. For traders: the halted burn removes a core supply-side bullish driver; higher volume appears skewed to selling pressure in some reports; short-term price resilience may be a technical bounce from oversold conditions rather than a durable recovery. Monitor: burn volumes (consistency and size), on-chain spot flows, and whether SHIB reclaims critical technical supports before sizing exposure.
Bearish
The combined reports point to a net bearish outlook for SHIB. Key drivers: 1) Burn activity has effectively collapsed (99% drop to negligible single-digit/low-six-figure burns), removing a material supply-side bullish catalyst; 2) Circulating supply remains extremely large (~585.4T SHIB), so small burns are insufficient to create meaningful deflationary pressure; 3) Although price showed a short-lived rebound and volume spiked, on-chain evidence and analysts’ notes indicate the volume increase was largely linked to selling pressure and spot flows failed to reverse the downtrend; 4) Technical damage (breaks below critical support) and a recent ~28.9% 30-day decline suggest the market is weak and vulnerable to further downside absent sustained burns or renewed buy-side demand. Short-term impact: likely limited bounces (oversold relief) but high volatility and downside risk; traders should use tight risk controls. Long-term impact: unless burns become consistent and materially larger relative to the circulating supply, tokenomics will remain skewed toward price weakness, keeping a bearish bias.