Shiba Inu price slides 2% despite 83 million token burn

Shiba Inu dropped almost 2% on Monday, extending a 7% weekly slide, even after a fresh burn of 83 million tokens—highlighting that supply‑side actions are not offsetting waning demand for the meme coin [3].

Price pressure despite the burn

The token’s price settled at $0.00000462, just above the 78.6% Fibonacci retracement level and below the $0.00000538 resistance that marks the psychological $0.00000500 threshold. The 2% dip adds to a 7% decline recorded over the prior week, signaling continued bearish momentum.

Weakening retail demand

CoinGlass data show SHIB open interest fell 13% in the last 24 hours to $42.80 million, while trading volume slumped 56% to $71.27 million. The funding rate dropped to 0% from 0.0092%, indicating reduced retail positioning. Analysts attribute the price weakness to large‑holder (whale) sell‑offs and a broader shift toward utility‑driven crypto projects, rather than the token burn itself. The 83 million‑token burn represents a tiny slice of the 589.2 trillion circulating supply, making its impact on scarcity negligible [2][3].

Tokenomics context

Shiba Inu’s circulating supply stands at roughly 589.2 trillion tokens, giving the coin a market cap of about $2.5 billion at current prices [1]. Even with the recent burn, the supply reduction is minuscule relative to the total, and the burn rate would require centuries to meaningfully affect price levels.

What to watch

• $0.00000538 resistance – a close above could revive bullish momentum.
• Open interest trends – a sustained decline may signal continued retail disengagement.
• Future token burns – monitor whether upcoming burns increase in scale relative to the massive supply.

The price slide underscores that, for Shiba Inu, supply‑side measures alone cannot revive demand; broader market sentiment and retail participation will likely dictate the token’s near‑term trajectory.