Shiba Inu Drops 1.855% Amid Liquidity Concerns, Long-Term Holders Face Losses

Shiba Inu's latest price was $0.00001058, down 1.855% in the last 24 hours. The meme cryptocurrency has been under scrutiny due to recent developments and market dynamics. A significant event was the burning of 12 million SHIB tokens, which aimed to reduce the circulating supply and potentially stabilize the token's value. However, the impact of this burn has been underwhelming, with concerns about liquidity and declining interest overshadowing the efforts. The decentralized nature of Shiba Inu means that the team, including lead developer Shytoshi Kusama, has not provided new insights or solutions to address these concerns.

Recent activity within the SHIB ecosystem, particularly on Shibarium, has indicated a decline in liquidity and interest. On-chain data suggests caution among traders and network participants, reflecting broader shifts in investor sentiment towards meme coins. Regulatory scrutiny and changing market conditions have contributed to the potential for SHIB holders to face losses, highlighting the fragility of underlying investments.

Historical data shows that June has been a challenging month for Shiba Inu, with the token experiencing significant losses in previous years. This trend has continued into June 2025, with over 940,000 wallets now sitting in losses. The current dip is not just a correction but feels more like a freefall, with confidence remaining but pressure mounting on long-term holders. The losses keep stacking up, with 940,450 addresses holding a combined 875.23 trillion SHIB in losses, more than double the number of profitable addresses.

Despite the challenges, some holders remain optimistic. Over 1.13 million wallets have held SHIB for more than a year, collectively owning 782.86 trillion tokens. Another 284,300 wallets hold SHIB between one and twelve months, totaling 174.71 trillion. These long-term holders, often referred to as "diamond hands," are not letting go just yet. However, patience has its limits, and if support breaks, even loyal holders might rethink their positions.

Looking ahead, the cryptocurrency sector, especially for meme coins like Shiba Inu, is expected to experience further volatility. Historical losses and bearish sentiment continue to shape market expectations, affecting both long-term holders and speculators. As SHIB's ecosystem experiences a downturn, financial and technological developments remain under observation. The importance of adaptive strategies moving forward is emphasized by historical cycles and current market conditions.