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Shiba Inu ($SHIB) crashed by 100% as the network recorded zero burn activity for the second time in less than seven days. Shiba Inu’s burn rate plunged to zero at the close of January 2026 as the broader meltdown affected the dog-themed meme coin in terms of price outlook and ecosystem activities.
$SHIB price slides as market sentiment turns bearish
Shibburn, a platform that tracks burn rate on the Shiba Inu network, has observed that there has been no burn activity in the last 24 hours. This zero burn rate appears to have made things worse for the price of the meme coin, which has dipped within the same time frame by over 5%.
For clarity, the Shiba Inu ecosystem periodically burns $SHIB from its total supply in a move meant to reduce the circulating supply. This move is aimed at reducing the circulating supply and creating a sort of scarcity with the hope that it could drive up the price.
However, with the burn rate crashing completely, the circulating supply has steadied at 585,423,776,344,682 $SHIB.
This means that efforts to stabilize prices through the ecosystem’s deflationary mechanism fell flat. The last burn activity, which took place some 48 hours ago, only incinerated 777,777 $SHIB. This was not sufficient to make any impact on the price outlook.
Shiba Inu has plunged from a daily peak of $0.000006809 to a low of $0.000006415 as bearish sentiment increases. As of this writing, Shiba Inu is exchanging hands at $0.000006475, reflecting a 4.51% decline in the last 24 hours.
The memecoin’s trading volume is up by 11.99% at $180.43 million, with most of it representing selloff, which has overshadowed the broader crypto market.
This has been worsened by the downward journey of the leading crypto asset, Bitcoin. The coin has lost over $5,000 in the last 24 hours as its price fell from $76,486.24 to $71,222. Market participants are hoping to see Bitcoin reclaim $72,500 to give temporary relief to the broader crypto market.
Analyst Warns of Further Downside Risks for Shiba Inu
For Shiba Inu, except things swing differently, the downward journey might not be over. As renowned onchain analyst Ali Martinez highlighted, the current $SHIB structure is looking fragile as it has dipped below a critical support of $0.000006672.
Martinez has predicted a possible 81% crash from the current price level. If this happens, it could wipe out nearly three years of gains made by Shiba Inu.
Meanwhile, in the last 24 hours, Shiba Inu spot flows climbed by over 1,500%, but it was not enough to push $SHIB out of the red zone.