While the burn rate for shiba inu has increased, indicating a deflationary effort, its positive impact on price is currently being negated by declining trading volume and a general market-wide weakness in the meme coin sector, leading to continued price decline.
The analysis uses specific data points like the burn rate percentage from shibburn and discusses broader market trends, including capital rotation, providing a balanced view of both positive and negative indicators.
Despite an uptick in the burn rate, shib's price is experiencing a decline. this is attributed to weak trading volume and a significant shift in investor sentiment away from meme coins towards 'safer assets' within the broader crypto market.
Burn rates primarily serve as a long-term deflationary mechanism aimed at reducing circulating supply over extended periods to create scarcity. their immediate price impact can be overshadowed by short-term market dynamics and sentiment.
Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Read U.TODAY on Google News Shiba Inu (SHIB), the dog-themed meme coin, has recorded a positive on one of its critical metrics in the last 24 hours. The ecosystem’s deflationary mechanism, the burn rate, flipped green as it climbed by 12.11% amid increased activities aimed at stabilizing the price outlook. Advertisement SHIB trading volume decline signals weak market p9articipation Shibburn data shows that a total of 3,011,445 SHIB were permanently removed from the Shiba Inu ecosystem following the uptick in burn rate. This is significant considering that the burn rate had, in recent times, remained deep in the red zone. At other times, the burn rate crashed to zero or near zero repeatedly as overall sentiment stayed bearish in the SHIB community. With the burn rate back in the green, community members will be anticipating a possible price improvement. Shiba Inu Burn Rate Chart | Source: Shibburn Notably, the burn rate is the ecosystem’s way of regulating circulating supply. An increase in burn rate mops up and permanently wipes out the tokens with the aim of creating scarcity. This often results in increased price value. Shiba Inu‘s price has been facing severe fluctuations, crashing from an intraday peak of $0.000006888 to a low of $0.000006436 within the last 24 hours. As of this writing, Shiba Inu exchanged hands at $0.000006636, which represents a 3.22% decline within the time frame, but with 9% weekly growth. Despite the drop, it appears the burn activity has supported its climb up from its previous intraday low. However, trading volume remains in the red zone, down by 28.97% to $165.03 million. Although the intense sell-off is gradually easing for SHIB, the meme coin sector is experiencing market-wide weakness. The meme coin market capitalization recently plunged by over 30% as investor sentiment shifted to perceived safer assets in the crypto sector. This capital rotation away from meme coins has impacted Shiba Inu’s price recovery. You Might Also Like Sun, 02/15/2026 - 02:30 Shiba Inu Completes Golden Cross on Hourly Chart, Rises 6% By Tomiwabold Olajide Shiba Inu’s recovery tied to improving on-chain indicators Interestingly, before this capital rotation, traders in the Shiba Inu community had their hope rekindled when 140 billion SHIB exited exchanges . The outflow suggested investors were not looking to sell their assets and had decided to move them into long-term storage. The development helped ease sell pressure temporarily as SHIB posted a 17% recovery from its recent lows. Notably, Shiba Inu had shed over 30% of its value in the past month as a result of constant sell pressure on the meme coin. In order for Shiba Inu to stay out of the bearish zone, other metrics, such as price and trading volume, would need to flip green. Market participants need to actively trade the meme coin and support its recovery journey, as only the burn rate might not sustain gains for long. #Shiba Inu