Why has Shiba Inu (SHIB) experienced a notable decline recently despite aggressive efforts to bolster its tokenomics? In recent days, SHIB’s price has dropped approximately 6% to 9%, with daily declines ranging from 2% to 3%. The token reached a low near $0.00001263, its weakest point since early July 2025. This depreciation occurred even as the Shiba Inu community intensified burn programs, aiming to reduce the circulating supply dramatically. Significantly, the burn rate has surged over 16,000%, yet these efforts have not translated into sustained upward price momentum, highlighting the complexity of influencing market valuation through tokenomics alone. Unlike some innovative projects such as Kaspa that utilize a deflationary schedule with yearly halving, SHIB’s tokenomics face unique challenges due to its massive supply.
SHIB’s price fell despite a 16,000% surge in burn rate, showing tokenomics alone can’t drive gains.
The broader memecoin sector mirrors this downturn, evidenced by the CoinDesk Memecoin Index’s 10% decline over the past week, signaling sector-wide weakness rather than isolated underperformance. Additionally, SHIB’s trading volume contracted by over 5.5%, reflecting diminished investor enthusiasm and heightened caution. The token’s massive circulating supply, approximately 589 trillion units, complicates rapid price appreciation, as supply pressures remain significant despite burns. SHIB’s market capitalization oscillates between $7.5 and $7.7 billion, fluctuating with price shifts but constrained by these supply dynamics.
Technically, SHIB has tested critical support near $0.000012345, a level pivotal for any potential bullish reversal. Current trading hovers around this threshold, with forecasts for 2025 projecting a price range from $0.0000101 to $0.0000445. Short-term projections for September 2025 estimate minimum and maximum prices near $0.0000122 and $0.0000152, respectively, averaging around $0.0000181. Technical analysis indicates consolidation, with emerging patterns suggesting a rare bullish reversal candle could be forming, possibly setting the stage for a positive shift in momentum. Market sentiment reflects a bearish 73% vs. a bullish 27%, indicating prevailing caution among traders. This outlook aligns with broader market expectations that SHIB’s short-term price will remain volatile within a defined range, emphasizing the importance of the critical support level.
Market sentiment remains mixed. Investor preference increasingly favors utility-driven tokens, reducing appetite for speculative memecoins like SHIB. Despite the recent price slide and volatility, some optimism persists regarding the potential long-term benefits of ongoing burn initiatives. The speculative nature of SHIB contributes to its pronounced price swings, while regulatory uncertainties and broader crypto market fluctuations continue to temper bullish enthusiasm. Overall, SHIB’s trajectory appears closely tied to sector trends and evolving investor priorities, with cautious eyes on volume and price action to confirm any reversal.
