Fresh Data Highlights 90% Decline in Shiba Inu Burn Activity

Recent data shows Shiba Inu burn activity has dropped sharply, with just 3.24 million SHIB removed from circulation across two transactions.

This represents a significant drop from January 20, when over 20 million SHIB were permanently burned, indicating that the burn momentum is fading.

Key Points

• Shiba Inu’s burn activity declined by 88% over the past day, with only 3.24 million SHIB removed from circulation.
• Daily burns have fallen sharply since January 20, when 28.86 million SHIB were incinerated.
• SHIB has slipped to 25th place by market cap, losing the 24th spot to Hedera.
• Shiba Inu’s price underperformance mirrors the broader market.

Shiba Inu Burn Activity Declines Sharply

According to fresh data from Shibburn, the Shiba Inu community burned 3.24 million SHIB over the past 24 hours. These burns occurred across only two transactions, with individual transactions destroying 1 million and 2.24 million SHIB, respectively.

Meanwhile, this figure represents only a small fraction of the activity recorded on January 20. On that day, total daily burn reached 28.86 million SHIB, driven by a single address that burned 28 million tokens in a single transaction.

With daily burns now down to roughly 3.24 million SHIB, Shiba Inu’s burn momentum has faded. This slowdown is further reflected in the burn rate, which has plunged by 88.7% over the past 24 hours.

Significance of Burns to SHIB

Token burns play a central role in Shiba Inu’s deflationary strategy, as the project uses them to gradually reduce supply and potentially support long-term value. However, as burn activity slows sharply, the likelihood of generating meaningful price appreciation through token destruction continues to diminish.

Despite steady efforts toward reducing supply, Shiba Inu still has a massive supply. From its original 1 quadrillion SHIB launch supply, the community, alongside Ethereum’s Vitalik Buterin, has burned approximately 410.75 trillion tokens, leaving a remaining supply of about 589.25 trillion SHIB.

As a result, critics continue to cite SHIB’s enormous supply as a key factor behind its recent underperformance. This dynamic has also played out in market rankings.

SHIB Drops to 25th Spot in Global Crypto Ranking

Shiba Inu has slipped to the 25th-largest cryptocurrency by market cap, losing the 24th position it held for weeks to Hedera (HBAR). However, the gap remains narrow, with HBAR at $4.72 billion and SHIB at $4.68 billion, a difference of less than $50 million.

Shiba Inu Mirrors Broader Market Performance

Meanwhile, SHIB’s price action has largely mirrored broader market trends. At its current price of $0.000007943, the token is down 0.41% over the past 24 hours, extending its seven-day decline to 10.10%.

For context, other major cryptocurrencies, including Ethereum, XRP, Cardano, and Hedera, have also posted double-digit weekly losses. These trends suggest that while Shiba Inu’s large supply continues to weigh on price performance, broader market conditions remain a decisive factor in shaping the token’s short-term trajectory.