The post Why is Shiba Inu price tanking as the burn rate soars? appeared on BitcoinEthereumNews.com.

Shiba Inu price continued its strong downward trend, reaching a low of $0.0000080, its lowest level since Nov. 24, and 76% from its highest level in December last year. Summary Shiba Inu price continued its downtrend despite the soaring burn rate. The burn rate rose by over 17,225% in the last 24 hours. SHIB has faced numerous bearish technicals and fundamental headwinds. Shiba Inu (SHIB) token has lagged behind other coins, including blue-chip names like Ethereum (ETH) and Bitcoin (BTC). Its market capitalization has dropped from nearly $20 billion to $4.6 billion. SHIB token continued dropping, even as its daily burn rate spiked by 17,225% to 32.4 million. This increase was triggered by one investor who moved over 30 million tokens to the burn address. Data compiled by ShibBurn shows that the network has burned over 410 billion tokens since its inception. It now has a circulation supply of 585 billion tokens. There are a few reasons why the SHIB price has crashed in the past few months. First, the crash is because of the ongoing meme coin sell-off that has affected most tokens like Pepe, Dogwifhat, Bonk, and Pudgy Penguins. Second, the amount of SBIB tokens being incinerated is negligible. While the 17,225% increase is notable, the dollar value of the amount being burned stood at $250, a tiny amount for a coin worth about 4.6 billion. Third, data compiled by Nansen shows that the amount of tokens held by smart money investors has dropped from 43.1 billion on Nov. 30 to 39 billion today. Falling holdings by smart money investors is a sign that they expect the coin to continue falling. Shiba Inu price has also dropped because of the woes in Shibarium, its layer-2 network, whose total value locked has plunged in the past few months. The…

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Filed under: News - @ December 1, 2025 9:22 pm