Shiba Inu Price and Burn Rate Are Falling: Time to Sell?

·

The Shiba Inu (SHIB) market has hit a rough patch. On Monday, December 9, the meme coin saw a sharp 7% drop, plunging to $0.000030—well below its monthly high of $0.000033. This pullback wasn’t isolated; it mirrored broader weakness across the crypto market, with Bitcoin and other altcoins also retreating. Popular meme tokens like Popcat (POPCAT), Peanut the Squirrel, and Dogwifhat (WIF) followed similar downward trajectories.

But beyond price action, a more concerning trend has emerged: Shiba Inu’s burn rate has collapsed by nearly 90%, signaling weakening deflationary pressure. With fewer tokens being permanently removed from circulation, investors are questioning whether this dip is just a correction—or the start of a longer-term downturn.

Understanding the Drop in SHIB’s Burn Rate

Token burning plays a critical role in Shiba Inu’s economic model. By reducing supply over time, burns are designed to increase scarcity and, theoretically, drive long-term value. However, recent data from ShibBurn reveals a dramatic slowdown.

The burn rate has fallen to just 413,412 SHIB per day, down from significantly higher levels just days prior. This decline follows a massive one-time burn of 250 million SHIB on Friday—likely a temporary spike that skewed averages. Without consistent large-scale burns, the deflationary engine powering SHIB appears to be sputtering.

To date, over 410 trillion SHIB tokens have been burned since the project’s launch. That leaves approximately 589 trillion in circulation—still an enormous supply. While continued burning could eventually tighten availability, the current slowdown raises concerns about momentum and community engagement.

👉 Discover how tokenomics influence long-term crypto value—explore market insights now.

Ecosystem Growth: A Silver Lining?

Despite short-term bearish signals, Shiba Inu’s underlying ecosystem shows signs of resilience and expansion.

Shibarium: Scaling Beyond the Meme

Shibarium, Shiba Inu’s Layer-2 blockchain, continues to gain traction. Since launch, it has processed over 623 million transactions and now hosts more than 2 million unique addresses. This growth indicates real user adoption—not just speculative trading.

Additionally, BONE token transfers—used for governance and staking within the ecosystem—have approached 2 million, reflecting increased on-chain activity and community participation.

These metrics suggest that while price and burns may fluctuate, the infrastructure supporting SHIB is maturing. A robust Layer-2 network can support decentralized applications (dApps), NFTs, and DeFi tools, potentially attracting developers and long-term users beyond meme hype.

ShibaSwap: Gaining DeFi Traction

ShibaSwap, the ecosystem’s native decentralized exchange, has also strengthened its position in the DeFi space. It now boasts over $28 million in total value locked (TVL)—a key indicator of user trust and capital commitment.

Transaction volume has risen steadily, and annualized fees have climbed past $3.2 million. Higher fees mean more incentives for liquidity providers, which helps stabilize trading pairs and improve market depth.

This growing utility differentiates Shiba Inu from purely speculative meme coins. While many fade after viral spikes, SHIB is building an ecosystem that could sustain relevance even in bear markets.

Technical Outlook: Is a Rally Still Possible?

Despite recent weakness, technical analysis suggests there may still be room for upside—if key levels hold.

Golden Cross Confirmed

A bullish signal emerged as SHIB’s 50-day weighted moving average (WMA) crossed above its 200-day WMA, forming what traders call a “golden cross.” Historically, this pattern precedes extended upward trends, especially when confirmed by rising volume.

Cup and Handle Formation

On the daily chart, SHIB appears to be forming a classic cup and handle pattern—a reliable continuation signal in technical analysis. The depth of this formation is approximately 67%, measured from the recent high of $0.00003280.

Using standard projection techniques, a breakout from this pattern could target $0.00005478, representing over 75% upside from current levels.

However, confirmation is crucial. To validate this bullish scenario, SHIB must reclaim and sustainably trade above its year-to-date high of $0.000045. Failure to do so could invalidate the pattern and open the door to further downside.

Key Support Level to Watch

On the flip side, the bearish case gains strength if SHIB breaks below the 50-week moving average at $0.000026. This level has acted as strong support in prior corrections. A close below it would likely trigger additional selling pressure and could signal a deeper retracement.

Frequently Asked Questions (FAQ)

Is Shiba Inu still a good investment?

SHIB remains speculative but has evolved beyond a pure meme coin. With growing ecosystem activity on Shibarium and ShibaSwap, it offers more utility than many peers. However, due to its massive supply and price volatility, it should only form a small part of a diversified portfolio.

Why is the SHIB burn rate important?

The burn rate reduces the total supply of SHIB over time, increasing scarcity. A high and consistent burn supports long-term price appreciation. A declining burn rate, like the current 90% drop, can weaken investor confidence and reduce upward pressure on price.

What is Shibarium’s role in the SHIB ecosystem?

Shibarium is a Layer-2 blockchain built to scale Shiba Inu’s ecosystem. It enables low-cost transactions, supports dApps, NFTs, and DeFi projects, and reduces congestion on Ethereum. Its growth—over 623 million transactions and 2 million addresses—shows increasing adoption beyond trading.

Can SHIB reach $0.0001?

Reaching $0.0001 would require a more than 3x increase from current levels. While technically possible during a bull market surge, it would demand massive demand, sustained burning, and broader market momentum. Most analysts view this as optimistic but not impossible in a strong 2025 rally cycle.

How does ShibaSwap compare to other DEXs?

While smaller than leaders like Uniswap or PancakeSwap, ShibaSwap has carved out a niche within the SHIB community. With over $28 million in TVL and rising fees, it demonstrates growing utility. Its integration with Shibarium enhances speed and lowers costs, making it competitive for ecosystem-specific trading.

Should I sell SHIB now?

Selling decisions depend on your risk tolerance and investment goals. Short-term volatility and declining burns may justify taking profits if you’ve already gained significantly. However, long-term holders might see dips as accumulation opportunities—especially if ecosystem growth continues.

👉 Analyze real-time crypto trends and make informed decisions with advanced tools.

Core Keywords Integration

Throughout this analysis, we’ve naturally integrated key terms that reflect search intent and market interest:

These keywords enhance SEO performance while maintaining readability and relevance.

Final Thoughts: Volatility Meets Potential

Shiba Inu stands at a crossroads. Near-term headwinds—including falling prices and a collapsing burn rate—have sparked fears of a broader reversal. Yet beneath the surface, the ecosystem continues to grow in meaningful ways.

Shibarium’s transaction volume, ShibaSwap’s rising TVL, and increasing on-chain activity all point to genuine development—not just hype. For investors, the key is distinguishing between short-term noise and long-term fundamentals.

While SHIB will likely remain volatile, its evolving infrastructure offers more reason for cautious optimism than many competing meme coins.

👉 Stay ahead of market shifts with real-time data and strategic insights—start exploring today.