The Shiba Inu (SHIB) ecosystem is facing a significant decline in its token burn rate, which has collapsed by 98.94% in the last 24 hours. According to data from Shibburn, only 305,490 SHIB tokens were sent to dead wallets during this period, a stark contrast to previous activity. This dramatic reduction in the deflationary mechanism coincides with the token's price testing a key support level near $0.00000601.
Market data reveals a broader cooling of trader interest. Open interest, which reflects the total value of outstanding futures contracts, has dropped 7.41% to $57.87 million, while trading volume fell 7.53% to $162.23 million. This signals reduced market participation and speculative activity around SHIB. The price, currently up a marginal 0.33% in the last four hours, is consolidating after failing to sustain gains above $0.00000650 earlier in the week.
Technically, SHIB remains under pressure. The token is trading below all major Exponential Moving Averages (EMAs), indicating a bearish trend. While it is holding above the Supertrend indicator support at $0.00000593, the Chaikin Money Flow (CMF) reading of 0.07 points to weak buying pressure. Analysts identify the next critical resistance levels at $0.00000733 and $0.00000968, with immediate support at $0.00000590 and then $0.00000575.
The broader crypto market context is also influencing SHIB's performance. Most major tokens posted losses as traders de-risked following a pullback in equities, spurred by Nvidia's earnings. An unexpected rally earlier in the week had provided some optimism, but this has since reversed. Market observers believe digital assets like SHIB are likely to move in tandem with broader risk sentiment rather than on purely crypto-specific catalysts in the near term.
Separately, the Shiba Inu ecosystem continues its recovery efforts from the September 2023 Shibarium hack. The "Shib Owes You" (SOU) system went live on February 17, 2026, issuing SOU NFTs to affected users as an on-chain record of what the ecosystem owes them. Furthermore, a full overhaul of the proof-of-stake node structure is underway to transition from a centralized validator model to a more distributed, community-governed set. A key privacy upgrade for the Shibarium layer-2 blockchain is scheduled for Q2 2026.
