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Shiba Inu's Downtrend Intact as Daily Burn Rate Tanks by 63%
The daily burn rate of SHIB dropped by 63%, posing a challenge to its deflationary goals, according to CoinDesk's AI insights.
Updated Jun 9, 2025, 1:45 p.m. Published Jun 9, 2025, 10:08 a.m.
What to know:
- Shiba Inu (SHIB) remains in a downtrend despite recovering from overnight lows, trading near $0.000012650.
- The daily burn rate of SHIB dropped by 63%, posing a challenge to its deflationary goals, while trading volume increased by 78%.
- On-chain data indicates potential support zones between $0.000012 and $0.000013, with significant investor interest at these levels.
remains locked in a downtrend despite recovering from overnight lows, as the sharp drop in the "daily burn" rate has dented deflation prospects.
The token has recovered to trade near $0.000012650 at the time of writing, having reached a low of $0.00001234 during the Asian hours. Still, the downtrend identified by trendlines connecting May 12 and May 23 highs and the low reached on May 17 remains intact.
STORY CONTINUES BELOW
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SHIB's daily burn rate dropped by 63%, threatening to derail the progress toward deflationary tokenomics, while trading volume surged by 78%. The daily burn rate refers to the number of SHIB tokens permanently destroyed or removed from circulation each day.
Token burns are widely used to introduce a deflationary appeal to cryptocurrencies. A deflationary token is a cryptocurrency whose supply is designed to decrease over time, typically through mechanisms like token burning.
So, the slower burn rate presents a headwind for SHIB. Still, on-chain data signaled $0.000012 and $0.000013 as potential support zones.
Key on-chain and technical insights
- Despite the bearish trend, on-chain data reveals a significant concentration of tokens held by investors with a cost basis between $0.000012 and $0.000013, suggesting this may become a heavily defended price zone where trading volumes could spike dramatically.
- Over the past 24 hours, support emerged at around the 0.00001236 level, with strong buying volume, suggesting accumulation at lower levels.
- Volume spiked dramatically at 08:02 with over 14.9 billion in trading activity, confirming the bullish momentum that pushed prices to session highs.
- Price stabilization in the final hours indicates potential consolidation before the next directional move.
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