Saad Ullah
Shiba Inu (SHIB) is having a rough day with its price falling over 10% while the burn rate collapsed by 93%. This double hit has got investors wondering if a major reset is coming.
Shiba Inu isn't exactly having its best moment right now. The meme coin's price dropped 10.19% to $0.00001347, down from its recent high of $0.00001507. But here's the kicker - the burn rate that's supposed to help boost prices has completely tanked too.
According to Shibburn data, only 225,774 SHIB tokens got burned in the last 24 hours. That's a massive 93% drop from previous levels, and honestly, it's not even making a dent in the supply. When you've got over 584 trillion SHIB tokens floating around, burning less than 300k isn't going to move the needle much.
SHIB Burn Mechanism Isn't Pulling Its Weight
The whole idea behind burning SHIB tokens is pretty simple - remove them from circulation permanently, create scarcity, and watch prices go up. Sounds good on paper, right? Problem is, it's just not working like it should.
Most of the burn transactions we're seeing are tiny - we're talking under 500 SHIB each, with most being around 300 SHIB. Only one transaction burned more than 100k tokens (149,463 SHIB to be exact). It's like trying to empty a swimming pool with a teaspoon.
With SHIB's total supply sitting at 589 trillion tokens, these small burns barely register. The community needs way bigger burn events to actually impact SHIB price in any meaningful way.
SHIB Price Getting Hit by Profit-Taking
So what's really driving this SHIB price drop? Analysts are pointing to good old-fashioned profit-taking. After some decent gains recently, investors decided to cash out and lock in their profits. Can't really blame them - everyone's trying to make money here.
The interesting thing is that trading volume actually jumped 64.11% to $555.82 million, so people are definitely still interested in SHIB. That's usually a good sign that the selloff might not last forever.
Despite this recent stumble, SHIB has actually gained about 20% in July overall. And here's something that might get bulls excited - historically, October has been SHIB's best month. Some investors are already looking ahead to October 2025, thinking this could be a buying opportunity before the traditional seasonal pump.
Saad Ullah
