- Shiba Inu fell nearly 6% in a day while the broader crypto market declined less than 1%
- Zero token burn activity has renewed concerns around SHIB’s massive circulating supply
- With sentiment turning risk-off, meme coins like SHIB remain especially vulnerable
Shiba Inu is having one of those sessions traders usually try not to stare at for too long. While the broader crypto market slipped a modest 0.8% over the last 24 hours, SHIB moved much harder in the wrong direction. By late trading, the meme coin was down roughly 5.7%, placing it among the weakest large-cap performers on the day.
That kind of divergence matters. It tells us SHIB isn’t just following the market lower, it’s being actively sold. And when risk appetite fades, meme tokens tend to feel the pressure first.
Risk-Off Sentiment Is Hitting Meme Coins the Hardest
Shiba Inu lives on the far edge of the risk curve. When sentiment turns optimistic, that volatility works in its favor. When fear creeps back in, it becomes a liability.
Right now, the mood across crypto is clearly defensive. Speculative assets are being trimmed, leverage is coming off, and traders are prioritizing capital preservation over upside bets. In that environment, SHIB doesn’t get the benefit of patience. Sellers step in early, and rallies struggle to hold.
This isn’t unusual behavior for meme coins, but it does explain why SHIB is underperforming even during a relatively mild market pullback.
The Supply Problem Is Still Looming Over SHIB
One of the biggest long-term challenges for Shiba Inu hasn’t changed. The circulating supply remains massive, sitting near 589 trillion tokens. That scale creates constant downward pressure, simply because price appreciation requires enormous inflows to move meaningfully.
Over time, SHIB’s market cap has been divided into smaller and smaller pieces, leaving each token with less individual weight. It’s a structural issue, not a short-term one, and investors are well aware of it.
This is why the community has leaned so heavily on supply reduction as a potential solution.
Token Burns Have Gone Quiet, and Traders Noticed
Token burns are meant to offset SHIB’s supply imbalance by permanently removing tokens from circulation. In the past, periods of active burning helped support sentiment and gave bulls something to point to.
Today, that narrative took a hit.
Reported burn activity over the last 24 hours came in at zero. Not slowed. Not reduced. Just nonexistent. After more than 400 trillion tokens have already been burned historically, expectations were building that the pace would continue. Instead, momentum stalled, and the market reacted quickly.
When burn activity dries up at the same time as liquidations rise and sentiment weakens, confidence tends to fade fast.
What This Means for SHIB in the Near Term
Put together, the picture isn’t great. SHIB is facing a risk-off market, rising sell pressure, and no immediate supply-side catalyst to counterbalance it. That doesn’t mean the project is finished, but it does mean the short-term setup is fragile.
Until either burn activity resumes or broader market sentiment improves, Shiba Inu is likely to remain vulnerable to sharp downside moves. Volatility is part of the deal here, and right now, it’s cutting lower.
