By Km Fazi 
Shiba Inu’s deflationary strategy showed signs of weakening after token burn activity dropped sharply over the past 24 hours. The slowdown comes as the meme coin faces broader challenges in price performance and investor sentiment, with its market ranking slipping alongside declining burn volumes.
Burn Activity Plunges After Recent Highs
According to data from Shibburn, the Shiba Inu community burned just 3.24 million SHIB in the last 24 hours across only two transactions. One transfer destroyed 1 million tokens, while the second removed 2.24 million SHIB from circulation.
This marked a dramatic decline compared to recent activity. On January 20, daily burns surged to 28.86 million SHIB, largely driven by a single wallet that eliminated 28 million tokens in one transaction. The latest figures represent an 88.7% drop in daily burn volume, highlighting a sharp slowdown in deflationary momentum.
Community records suggest sustaining consistent burn activity remains a challenge, with participation fluctuating significantly from day to day.
Deflationary Strategy Faces Structural Limits
Token burns remain a central pillar of Shiba Inu’s long-term strategy to reduce supply and potentially support price stability. However, the scale of remaining supply continues to raise concerns among market participants.
Since its launch with a total supply of 1 quadrillion SHIB, the community and Ethereum co-founder Vitalik Buterin have collectively burned approximately 410.75 trillion tokens. Despite these efforts, around 589.25 trillion SHIB still remain in circulation.
The sheer size of the remaining supply underscores ongoing skepticism about whether current burn rates can meaningfully influence scarcity or long-term valuation.
Market Ranking Slips as Confidence Weakens
The slowdown in burn activity coincides with a decline in Shiba Inu’s market standing. The token’s ranking has slipped, reflecting broader performance challenges and wavering investor confidence.
With burn momentum fading and price support weakening, analysts note that Shiba Inu may struggle to rely on deflation alone as a catalyst for recovery. Without renewed community participation or higher-volume burns, the impact of supply reduction on market dynamics could remain limited.
For now, Shiba Inu faces mounting pressure to demonstrate stronger fundamentals as both burn activity and market positioning show signs of strain.