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Shiba Inu's open interest has dropped significantly as futures activity declines and burn rates slow, signaling weakening investor interest.
Shiba Inu (SHIB) is facing renewed bearish pressure as key market metrics indicate a significant cooling of investor interest. Recent data shows that open interest has crashed by more than 30%, while the token's burn rate has slowed to surprisingly low levels [1]. These developments coincide with a prolonged price decline, raising questions about the meme coin's future momentum [1].
Key takeaways
Data indicates a sharp reduction in speculative activity within the Shiba Inu futures market. On May 27, open interest fell 6% to $49.4 million, accompanied by a 190% plunge in futures flow and outflows of $5.6 million [1]. This trend continued, with open interest dropping an additional 5.6% to approximately $46.44 million, suggesting traders are rapidly closing positions [1]. Analysis of market structure points to deleveraging, where derivatives netflow turned sharply negative as open interest fell from around $61.2 million to roughly $46.72 million by May 31, 2026 [2]. While this indicates risk is leaving the system, futures volume remained significantly above spot volume during this period, meaning derivatives continued to drive price action [2].
The network's burn mechanism, typically a source of community optimism, has also stalled. Tracking data reveals that only about $2 worth of tokens were burned on May 26, with roughly $11 worth burned over a 24-hour period [1]. Weekly burns totaled less than $100, signaling a lack of engagement in reducing supply [1]. This metric weakness aligns with SHIB's price performance, which has fallen over 14% in the last 30 days and more than 63% year-to-date [1]. The broader weakness in the meme coin market has also affected assets like Dogecoin, contributing to the selling pressure on SHIB [1].
The decline in open interest and burn rates suggests that Shiba Inu is losing the trading volume and community engagement that previously supported its market position [1]. With derivatives volume outpacing spot volume and traders reducing leverage, the market appears to be undergoing a period of risk reduction rather than accumulation [2]. If these bearish signals persist, the token may struggle to regain the momentum required for a price recovery.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jun 3, 2026 · How we report
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