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SHIB’s Critical Juncture: Burn Rate Collapse and Whale Exodus Signal Turbulent Times Ahead

SHIB’s Critical Juncture: Burn Rate Collapse and Whale Exodus Signal Turbulent Times Ahead

Author:
SHIB News
Published:
2025-10-21 14:34:30
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Despite a recent 47% rebound from monthly lows that mirrored broader cryptocurrency market trends, Shiba Inu (SHIB) faces significant headwinds that threaten its near-term prospects. The meme cryptocurrency's daily token burn rate has experienced a catastrophic 99% collapse, plummeting to just 69,530 tokens—valued at less than $1—as ecosystem activity on Shibarium, its layer-2 scaling solution, has effectively flatlined. This dramatic reduction in token burning, a mechanism designed to reduce supply and potentially increase scarcity, comes amid concerning network metrics that paint a bleak picture for the project's ecosystem health. The Total Value Locked (TVL) in Shibarium has plunged 43% to $873,820, a decline directly linked to the recent ShibaSwap exploit that has shaken investor confidence. Compounding these challenges, daily active accounts on the network have dwindled below 500, indicating significantly reduced user engagement and adoption. These developments occur against a backdrop of whale investors exiting their positions, creating additional downward pressure on SHIB's price. While the cryptocurrency demonstrated resilience with its recent recovery from monthly lows, the combination of collapsed burn rates, declining ecosystem value, security concerns, and whale departures suggests the token faces substantial obstacles in maintaining its upward momentum. The situation highlights the ongoing volatility and risk factors inherent in meme-based cryptocurrencies, even as they attempt to build more substantial technological foundations through projects like Shibarium.

Shiba Inu Faces Downward Pressure as Burn Rate Collapses and Whales Exit

Shiba Inu's recent 47% rebound from monthly lows mirrors broader crypto market trends, but warning signs emerge. The meme coin's daily burn rate cratered 99% to just 69,530 tokens—worth less than $1—as Shibarium's ecosystem activity flatlines.

Network metrics paint a bleak picture: Total Value Locked in Shibarium plunged 43% to $873,820 following the ShibaSwap exploit. Daily active accounts dwindled below 500, generating less than $10 in daily fees. The mechanism converting BONE fees to SHIB burns has effectively stalled.

Whale wallets and institutional holders accelerated their exits, with smart money addresses slashing positions by 10%. While SHIB gained 10% weekend-to-date, it underperformed peers like Zcash and Synthetix during the market-wide recovery.

Shiba Inu (SHIB) Price Prediction: Whales Accelerate Accumulation Amid Recovery Momentum

Shiba Inu shows early signs of bullish reversal after a volatile October start, with trading volumes and investor confidence rising. The meme token gained 4.7% in 24 hours, testing key support NEAR $0.00000960 before rebounding to $0.00001005.

Technical analysis reveals a falling wedge pattern—a classic reversal signal—as whales accumulate positions. Market participants are eyeing a breakout toward $0.0000235, supported by a 25% surge in daily volume.

Shiba Inu Fights to Erase Extra Zero: Can It Break Through $0.00001?

Shiba Inu (SHIB) is navigating a volatile phase as it attempts to reclaim the psychologically significant $0.00001 threshold. The memecoin's 1.39% gain in the past 24 hours brings its current price to $0.00001021, though resistance at this level remains formidable.

October's plunge to $0.0000085—the year's lowest point—has left investors wary. The persistence of an additional zero in SHIB's pricing reflects underlying market skepticism. Yet bullish sentiment persists, with traders monitoring whether renewed buying pressure could catalyze a breakout.

Technical analysts highlight $0.00001 as a critical resistance zone. The token's ability to sustain momentum beyond this barrier will determine whether it can shed the weight of its fractional valuation and regain investor confidence.

SHIB Technical Analysis Points to Potential $0.00002 Rally as Accumulation Signals Strengthen

Shiba Inu (SHIB) trades at $0.00001088, down 2.2% in the past 24 hours, yet analysts see potential for a rally toward $0.00002. The token's RSI at 37.85 suggests oversold conditions, attracting buyers amid weakening Bitcoin correlation.

Whale activity and increased burn mechanisms are driving accumulation patterns, with on-chain metrics showing rising transaction volumes and active addresses. Despite trading 87% below its 2021 peak, SHIB's technical setup hints at upward momentum.

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