 ▲ Shiba Inu (SHIB) |
Shiba Inu (SHIB) is at risk of losing momentum for a price rebound as its token burn rate has plunged to its lowest level in weeks amid declining network activity.
According to crypto-focused media outlet U.Today on February 12 (local time), the token burn rate—one of the key indicators of the Shiba Inu ecosystem—fell 97.83% over the past 24 hours, contrasting sharply with the steep rise seen at the beginning of the year. On January 1, the burn rate had surged more than 12,000%, eliminating approximately 173,007,224 SHIB. In comparison, the current burn volume has dropped significantly to about 3,777,885 SHIB.
The slowdown in token burn activity coincides with a broader decline in network transaction volume. Activity on Shibarium, Shiba Inu’s Layer 2 network, has weakened, preventing the automatic burn mechanism driven by transaction fees from operating efficiently. Data from Shibburn indicates that while the weekly burn rate still maintains an increase of over 500%, the sharp drop in daily metrics is heightening market uncertainty.
Price action has also remained sluggish. SHIB surged to $0.00000765 at the start of the year, signaling a strong beginning, but has since entered a correction phase and is now threatening the $0.000006 level. Open interest in the futures market has declined by more than 8% over the past 48 hours, with investors increasingly adopting a wait-and-see approach following short-term profit-taking.
Shytoshi Kusama, the ecosystem’s lead, recently urged the community in a public video to focus on building a robust and decentralized ecosystem rather than short-term price movements. Kusama emphasized that 2026 will be a year of substantial infrastructure expansion beyond mere speculative hype, encouraging long-term technological innovation.
Shiba Inu continues to pursue ongoing token burns to reduce its massive circulating supply, currently at approximately 589,243,880,917,864 SHIB. However, without a recovery in network activity, achieving meaningful scarcity retroactively may prove challenging. If the $0.000005 level breaks, further downside could open up, prompting investors to closely monitor Shibarium upgrades and whale activity.
Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from its use. The information provided should be interpreted solely for informational purposes.