The Shiba Inu (SHIB) ecosystem is concluding 2025 with its worst annual performance on record, having posted monthly losses in 10 out of 12 months. The final quarter was particularly devastating, with consecutive declines of 15.2% in October, 16.2% in November, and 11.6% in December, suggesting a deeply rooted bear market rather than a temporary correction.
Amidst this bleak price action, the community executed a significant deflationary maneuver. Data from Shibburn shows the SHIB burn rate spiked by an astronomical 3,915,071% in a 24-hour period, with 21.61 million tokens sent to dead wallets. This removed 0.0037% of the total circulating supply of 589.25 trillion SHIB.
Despite this massive relative increase in burn activity, the price impact was muted. SHIB traded around $0.000007376, down 1.63% over 24 hours, though it had recovered from an intraday low of $0.000007009. Trading volume saw a more promising surge of 52.2% to $195.86 million, indicating heightened trader engagement.
Technical analysts highlight a critical juncture for the memecoin. The immediate support level is at $0.00000678, a breach of which could confirm seller dominance and lead to new price lows. For a potential trend reversal, bulls must first reclaim the $0.000008 level, with the next significant resistance seen at the $0.000009 supply zone.
The burn mechanism's effectiveness is questioned due to inconsistency. While the 24-hour burn was the largest in a week, the total burned over the past seven days fell by 62.99% to 23.57 million SHIB. Analysts argue that deliberate, consistent supply reduction is required to positively impact price. The community now looks to January 2026, wondering if it will mirror the historical bullish reversals of February and March 2024—where SHIB gained 41% and 145% respectively—or succumb to the negative inertia of a catastrophic year.
