Shiba Inu's (SHIB) token burn rate has collapsed by 99.88% in a single day, according to data from the Shibburn tracking portal. After a weekend of significant burn activity, only 20,176 SHIB tokens were sent to unspendable wallets in the past 24 hours, a stark contrast to the tens of millions burned previously. This sharp slowdown coincides with a 15% weekly price decline for the meme coin, which is now trading around $0.00000552 and testing a key support level.
The dramatic drop in burn rate follows a weekend surge where two large anonymous transfers removed 73,527,022 SHIB and 10,335,917 SHIB from circulation. Overall, the SHIB community has burned a cumulative total of 410,754,474,679,250 tokens since early 2021. This ongoing supply reduction initiative began after Ethereum co-founder Vitalik Buterin burned nearly all of the quadrillion SHIB tokens he received from the project's anonymous creator, Ryoshi, in May 2021.
Analyst Ali Martinez has issued a stark warning, suggesting SHIB could be on the verge of a crash to as low as $0.00000138, a potential 75% drop from current levels. Martinez points to SHIB's recent drop below the critical $0.00000667 level as a key bearish signal. The token has already plunged approximately 60% year-to-date, with its market capitalization falling to around $3.2 billion.
Further bearish factors include the stalled progress of Shibarium, Shiba Inu's layer-2 scaling solution. Daily transactions on Shibarium have plummeted from millions to mere thousands following a significant exploit in September 2025, which damaged investor trust and ecosystem momentum.
Despite the overwhelmingly negative signals, some metrics suggest potential for a near-term rebound. SHIB's supply on centralized exchanges has fallen below 81 trillion tokens, its lowest level since May 2021, which may indicate reduced selling pressure. Additionally, the token's Relative Strength Index (RSI) recently dipped below 30, entering oversold territory, and currently sits around 36.
