Shiba Inu's Token Burn Rate Surges 5762.9% Amid Retail Interest

Shiba Inu (SHIB) has recently experienced a significant surge in deflationary activity, with a 5762.9% increase in its token burn rate. This surge is accompanied by a notable rise in retail engagement, as indicated by a 19.83% increase in new addresses, a 9.41% rise in active addresses, and a 29.38% surge in zero balance addresses over the past week. This influx of new users and heightened address churn suggests a growing interest and participation from retail investors, which is typical during retail-driven market phases.

However, the transaction size analysis presents a more nuanced picture. While sub-$1 transactions soared by 238.46%, larger transactions in the $1K–$10K and $10K–$100K ranges dropped sharply by 66.52% and 74.56%, respectively. This divergence underscores a shift toward retail dominance, as whale activity diminishes, limiting significant upward price pressure. The reduced participation from whales indicates a potential lack of institutional interest or confidence in SHIB's short-term prospects.

Despite the increased retail activity and deflationary efforts, SHIB remains within a critical demand zone between $0.00001028 and $0.00001196, a range historically associated with buying interest and potential support. However, the token is capped below a descending trendline, maintaining a bearish structural outlook. The Relative Strength Index (RSI) at 41 indicates weak momentum without reaching oversold conditions, suggesting the possibility of further downside before a meaningful recovery. This technical setup highlights the importance of monitoring key support levels for potential entry points.

Market flow data reveals a notable divergence between inflows and outflows. While 7-day Exchange Inflows rose by 26.43%, indicating some selling interest, outflows surged by 92.01%, nearly doubling inflows. This trend suggests that a significant segment of SHIB holders prefer self-custody, reflecting increased long-term conviction. Such a pattern typically reduces immediate selling pressure and signals a holder base willing to endure volatility, which can be a positive foundation for future price stability or appreciation.

Derivatives metrics show a slight positive shift in SHIB’s Open Interest-Weighted Funding Rate at 0.0048%, indicating a modest tilt toward long positions. This shift points to cautious optimism among derivatives traders, although overall conviction remains subdued. The OKX Liquidation Heatmap highlights critical liquidity zones between $0.0000132 and $0.0000133, where short positions are vulnerable. A successful breach above this range could trigger short squeezes, potentially accelerating upward momentum. Conversely, robust support clusters near $0.00001208 may provide a safety net during price dips.

The convergence of SHIB’s unprecedented burn rate, rising retail engagement, and dominant exchange outflows suggests growing investor conviction. However, the absence of whale participation and the prevailing bearish technical structure remain significant obstacles. Until SHIB decisively breaks above the descending resistance and clears the $0.0000133 liquidity cluster, upward momentum may remain constrained. Nevertheless, the current environment lays foundational bullish elements, with retail momentum and reduced circulating supply potentially setting the stage for a future recovery.

Shiba Inu (SHIB) is facing increasing competition from Toncoin (TON) and Hedera (HBAR) in the mid-cap crypto market. The latest CoinMarketCap rankings place SHIB at 19th with a market capitalization, narrowly trailing TON and slightly ahead of HBAR. This tight clustering underscores a fierce contest among these mid-cap cryptocurrencies, where fractional market cap differences can influence investor decisions significantly. The competition is no longer just about brand recognition or hype; it increasingly reflects underlying fundamentals and market confidence.

Over the past 24 hours, SHIB’s price declined, contrasting with TON’s smaller dip and HBAR’s modest gain. This divergence in short-term price action suggests that traders are reassessing risk profiles amid broader market uncertainties. SHIB’s recent breach below its 50-day and 100-day moving averages is particularly telling, as these technical indicators often serve as benchmarks for trend direction. The token’s proximity to its year-to-date support level further emphasizes a critical juncture, where sustained weakness could lead to deeper corrections.

Despite the downward price pressure, SHIB maintains a substantial trading volume, indicating ongoing liquidity and market participation. However, this volume trails behind other established cryptocurrencies, hinting at a potential decline in speculative enthusiasm. In contrast, Toncoin and Hedera exhibit steadier volume patterns, which may appeal to investors seeking less volatile exposure. This shift in liquidity dynamics could influence future capital flows and market dominance within this segment.

Toncoin demonstrates relative structural resilience despite minor setbacks, maintaining support levels that suggest investor confidence in its long-term prospects. Hedera’s gradual upward momentum, characterized by lower volatility and a more stable price pattern, positions it as a contender for sustained growth. These technical attributes contrast with SHIB’s current roller coaster price behavior, highlighting the importance of stability and consistent performance in attracting institutional and retail investors alike.

The ongoing tussle between Shiba Inu, Toncoin, and Hedera exemplifies the evolving landscape of mid-cap cryptocurrencies, where market cap proximity and technical performance drive competitive dynamics. While SHIB remains a significant player with notable liquidity, its recent technical setbacks and increased volatility pose challenges to maintaining its position. Investors should monitor these developments closely, as the mid-cap race intensifies and market participants recalibrate their strategies based on emerging trends and risk assessments.