Shiba Inu Faces Market Downturn as Burn Rates Surge

Shiba Inu (SHIB) has continued to experience significant declines in recent market activity, reflecting broader selling pressure across the cryptocurrency sector. The token saw a drop of 3.47% in the last 24 hours, further extending its downward trend. This decline follows a high of $0.00001026 reached earlier this month, with SHIB now trading as low as $0.00000845. This marks the sixth consecutive day of losses for the token, showing the ongoing bearish sentiment in the market.

The crypto market as a whole has been under intense pressure, with Bitcoin dipping below $90,000 for the first time since April. The largest cryptocurrency’s prolonged price drop has erased its gains for 2025, contributing to growing negativity within the crypto space. As concerns mount over economic factors such as potential interest-rate hikes and overleveraging within speculative markets, the market sentiment remains subdued. The uncertainty surrounding the Federal Reserve’s interest rate policy and falling stock market prices has intensified the sell-off in digital assets.

Shiba Inu Burns Surging Amid Market Slump

In contrast to the price decline, a significant amount of SHIB tokens has been sent to dead wallets, contributing to a surge in burn rates. According to Shibburn, over 17 million SHIB tokens were burned in the past 24 hours, marking a 1090% increase in the daily burn rate. While this shows a growing commitment to reducing the circulating supply, the weekly burn rate has dropped by 64.48%, with just under 228 million SHIB tokens being burned in the last seven days.

Despite these efforts to reduce the supply, the broader market weakness continues to weigh on Shiba Inu’s price, as well as other altcoins. The ongoing market sell-off has led to over $1 billion in liquidations, including both long and short positions. With altcoins reaching multi-month lows and the broader crypto market struggling to find support, many analysts predict a local bottom may be near. However, until broader market conditions improve, Shiba Inu and other cryptocurrencies are likely to continue feeling the effects of market-wide bearish sentiment.

The market’s recovery remains uncertain as traders remain cautious, especially with the possibility of further interest-rate hikes. This uncertainty has fueled a risk-off environment, pushing investors away from more speculative assets like cryptocurrencies. As the market reacts to these macroeconomic factors, it is unclear when Shiba Inu and other tokens will find a sustainable bottom.