Shiba Inu’s Deflation Hopes Wobble as Burn Rate Sinks 63% Amid Rising Volume
Shiba Inu (SHIB) is treading water after a volatile session, as a sharp 63% drop in its daily burn rate throws a wrench into its deflationary ambitions. Despite bouncing off early lows, the memecoin remains stuck in a broader downtrend shaped by weeks of lower highs.
SHIB briefly dipped to $0.00001234 during early Asian trading but recovered to hover around $0.00001265. While bulls defended key levels, the sudden slowdown in token burning—SHIB’s primary tool for reducing supply—may weigh on long-term sentiment.
Adding to the mixed signals, trading volume surged 78%, showing that traders are still actively rotating in and out of the asset, even as burn-related momentum fades.
What’s Happening On-Chain and in Charts:
- Cost Basis Cluster: Wallet analysis shows a dense group of SHIB holders sitting between $0.000012 and $0.000013, hinting at potential buying pressure if prices retest that zone.
- Bounce from Support: Strong demand kicked in around $0.00001236, triggering a short-term recovery backed by a sharp volume spike.
- Volume Flash: At 08:02 UTC, over 14.9 billion tokens were traded, aligning with a price push to session highs—suggesting bulls aren’t gone, just cautious.
- Sideways Setup: Price action later in the session showed signs of consolidation, as traders appeared to wait for a stronger catalyst.
While SHIB’s long-term vision relies on steady token burns to maintain scarcity, the recent decline in burn activity raises questions about sustainability. If this trend continues, SHIB may need more than just memes and momentum to hold investor interest.
