Shiba Inu Slides as Burn Activity Drops to Zero

Shiba Inu (SHIB) suffered a sharp setback after the network recorded zero burn activity for the second time in less than a week, intensifying already bearish market conditions. Data from Shibburn shows that no SHIB tokens were burned over the past 24 hours, with the burn rate falling to zero at the end of January 2026. This development coincided with a broader market downturn that has weighed heavily on both SHIB’s price and overall ecosystem activity.

The absence of burns appears to have added pressure to SHIB’s short-term outlook. Over the same period, the token slipped by more than 5%, as traders reacted to weakening deflationary signals. Token burns are a key mechanism within the Shiba Inu ecosystem, designed to reduce circulating supply and introduce scarcity that could, in theory, support price appreciation. With burn activity stalled, circulating supply has remained unchanged at roughly 585.4 trillion SHIB, highlighting the limits of the ecosystem’s deflationary efforts under current conditions.

The most recent burn event occurred around 48 hours earlier and removed just 777,777 SHIB from circulation, an amount widely seen as too small to influence price dynamics. As bearish sentiment strengthened, SHIB fell from a daily high near $0.000006809 to a low around $0.000006415. At the time of writing, the token was trading at approximately $0.000006475, marking a 4.51% decline over the past 24 hours.

Trading activity has increased despite the price drop, with volume rising nearly 12% to about $180.4 million. Much of this activity reflects sell-side pressure, which has overshadowed broader market moves. The weakness in SHIB has also been amplified by Bitcoin’s sharp decline, with BTC losing more than $5,000 in a single day as it slid from above $76,000 to near $71,200. Market participants are closely watching whether Bitcoin can reclaim the $72,500 level, which some see as critical for stabilizing sentiment across the crypto market.

Analysts Warn of Further Downside Risk

Looking ahead, analysts caution that Shiba Inu’s downtrend may not be finished. Onchain analyst Ali Martinez noted that SHIB has fallen below a key support level at $0.000006672, leaving its current price structure vulnerable. According to Martinez, a deeper breakdown could open the door to a potential decline of up to 81% from current levels, a move that would erase much of the gains accumulated over the past three years.

Interestingly, spot flows for SHIB surged by more than 1,500% over the past 24 hours, signaling heightened activity among traders. However, this spike was not enough to reverse the negative price momentum, leaving SHIB firmly in the red as uncertainty continues to dominate the meme coin market.