- ShibaInu daily token burn rate has plummeted by over 99%, raising concerns about the community’s commitment to its deflationary goals.
- However, upcoming features like the Alpha Layer and bullish technical indicators suggest SHIB may be poised for a comeback.
A Sudden Burnout Leaves SHIB Fans Wondering What’s Next
The ShibaInu (SHIB) burn frenzy has come to a screeching halt. After torching nearly half a billion tokens earlier this month, SHIB’s daily burn volume has dramatically dropped by 99.41%, with just under 3 million tokens burned in the past 24 hours. What caused this sudden cool-off? According to on-chain data, only six modest transactions were made to SHIB’s burn wallets — one as tiny as under 1,000 SHIB.
This sharp decline has the SHIB Army questioning the meme coin’s long-term deflationary mission. But despite appearances, hope may be just around the corner.
Alpha Layer Could Reignite the SHIB Flame
The temporary slowdown in burns isn’t the end of the road. Shiba Inu’s developers are preparing to roll out the much-anticipated Alpha Layer, an upgrade that automatically burns tokens with each transaction. This could revitalize the project’s deflationary efforts and help restore faith among community members.
So far, SHIB has 410.75 trillion tokens burned out of its original 999.98 trillion supply, with 5 trillion staked in long-term vaults. Although over 584 trillion tokens remain in circulation, these ongoing reductions offer a glimmer of hope for a more scarce — and potentially more valuable — SHIB in the future.
Bullish Indicators Suggest SHIB’s Not Done Yet
Despite the slump in burn activity, technical signals are flashing green. ShibaInu is currently trading at $0.00001222, and several bullish indicators are emerging. The Parabolic SAR now appears below the price, hinting that SHIB is undervalued, while the McGinley Dynamic trend-line has crossed under with an upward slope — both bullish signs.
Adding fuel to the optimism, the Chaikin Money Flow (CMF) is above 0.28, signaling strong whale accumulation. With the burn mechanism set to restart and key indicators pointing upward, ShibaInu could be staging a comeback. A return to high burn volumes may be the catalyst SHIB needs to test $0.000013 and beyond.
The Burn May Be Out — But the Fire Isn’t Dead
ShibaInu’s recent burn collapse might feel like a setback, but with new mechanisms on the horizon and technical momentum building, SHIB’s next breakout may already be heating up.
