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Shiba Inu Price Hits Multi-Year Lows
The bearish sentiment that has rocked the crypto market in recent months has led to poor performance among meme tokens. SHIB has been among the worst-hit cryptocurrencies and is down by more than 12% in seven days.
On January 31, SHIB recorded one of its largest intraday losses, with the price plunging to $0.00000616. The main cause of this drop was selling pressure from traders who panicked after BTC plunged to multi-month lows.
The SHIB drop was also fuelled by long liquidations. According to Coinglass data, Shiba Inu recorded $661,000 in long liquidations, the largest in three weeks. When long traders are liquidated, they are forced to sell coins to close their positions, and this selling pressure fueled the drop.
The recent drop to multi-year lows has prompted speculation about whether SHIB could rally to $0.001 or whether further declines are imminent.
 
Slow Burn Rate, Dropping Shibarium TVL Could Derail Recovery
As the Shiba Inu price tanks, various metrics suggest that recovery could take time. For instance, Shibburn shows that the token’s burn rate has declined significantly. In the last 24 hours, only one million SHIB tokens have been burned. This follows an over 48-hour hiatus where no tokens were burned.
When the SHIB burn rate declines, it reduces the likelihood of a supply shock, especially now that more traders are selling their coins on exchanges.
One reason for the reduced burn rate is a decrease in network activity. Data from DeFiLlama shows that the Shibarium TVL recently dropped to $438,000, marking its lowest level in history.
By the end of December 2024, Shibarium’s TVL stood at more than $6 million. This indicates that the metric has declined by more than 93% over 14 months.
In summary, Shiba Inu may continue to face bearish pressure in the near term if broader market sentiment does not shift in favor of bulls. Additionally, reduced network activity and a stalling burn rate make recovery less likely.