By Victor Swaezy 
Shiba Inu (SHIB) is facing mounting pressure as the broader cryptocurrency market remains in a prolonged downturn. Over the past 24 hours, SHIB’s burn rate dropped sharply by 91.28%, highlighting weakening momentum across the meme coin’s ecosystem.
According to recent data, only 119,829 SHIB tokens were burned during this period, a steep decline compared to the previous day, when more than one million tokens were permanently removed from circulation.
The slowdown in burn activity reflects reduced market engagement and aligns closely with SHIB’s ongoing price struggles.
Declining Burn Activity Signals Waning Demand
The burn rate has long been viewed as a key mechanism for increasing SHIB’s scarcity and supporting long-term value. However, the latest collapse in burn activity suggests fading demand and lower participation from the community.
With the broader crypto market trading in the red, SHIB has failed to attract renewed interest, limiting the effectiveness of token burn initiatives. As investor sentiment weakens, burn contributions appear to be slowing, reducing one of the token’s primary deflationary supports.
SHIB Price Action Mirrors Burn Rate Weakness
Shiba Inu’s price performance has mirrored the decline in burn activity. On Friday, SHIB briefly attempted a recovery, rallying more than 13% to approximately $0.00000636. However, the move lacked follow-through, with the token quickly reversing and falling 5.43% shortly afterward.
This choppy, sideways price action underscores the lack of clear direction in the market. Bitcoin and other major cryptocurrencies are also struggling to establish momentum, further weighing on speculative assets like SHIB.
Reduced Enthusiasm Despite Isolated Burns
Although SHIB recorded a few notable burns earlier in the week—including transfers of 7.7 million SHIB and 2.02 million SHIB—the overall trend points to declining enthusiasm. Isolated burn events have not been enough to offset the broader slowdown in activity or restore bullish momentum.
The combination of falling burn rates and stagnant price action suggests SHIB is currently unable to regain its upward trajectory.
Outlook Remains Uncertain Amid Market Stagnation
As burn activity continues to decline and price movements remain muted, uncertainty surrounds Shiba Inu’s near-term outlook. The meme coin’s struggles serve as a reminder that even widely recognized cryptocurrencies are vulnerable during extended market downturns.
Without a broader market recovery or renewed demand, SHIB may continue to face challenges in restoring investor confidence and reviving excitement around its ecosystem.