Shiba Inu Crashes: Will SHIB Add Another Zero Soon?

Shiba Inu (SHIB) continues to decline, with its price recording losses across multiple timeframes. Meme-based cryptocurrency SHIB has faced difficulties even after accomplishing important milestones which causes investors to express concern.

Market data reveals continuous price depreciation in Shiba Inu (SHIB) as it recorded a 0.3% increase in 24 hours followed by 8.28% loss across the previous week and a 54.9% reduction in annual value. Each new zero could become closer to Shiba Inu’s (SHIB) trading value as its present price stands at $0.00001226.

SHIB has lost 85.9% from its maximum value of $0.00008616, which occurred during October 2021, according to data from CoinGecko. The price decline has turned most SHIB investors into holders who now show losses. Data from IntoTheBlock shows that 62% of SHIB investors hold losing positions as the total breaks down to 35% profitable and 3% even.

Market volatility continues to exist because significant holders possess 74 percent of the total SHIB supply. “Large holders tend to influence price movements significantly,” an analyst noted, suggesting that their trading activity could be impacting market trends.

Shibarium Milestone Fails to Boost SHIB Price

Shiba Inu’s layer-2 network, Shibarium, recently crossed the milestone of 1 billion total transactions. The scaling solution, designed to improve transaction speed and reduce costs, has seen steady adoption. However, this achievement has not translated into a price recovery for SHIB.

Despite the rising transaction count, market sentiment has remained bearish. Shibarium’s network activity has continued to grow, with total addresses nearing 200 million and cumulative gas fees reaching 38 trillion BONE. 

“Shibarium is shifting from an experimental phase to a stage of real-world application,” a community update stated.

Shibarium: Entering Its Gold Age

Just as the Gilded Age and Golden Ages of America were marked by transformation, innovation, and global positioning, Shibarium is now shifting from its “green” era of experimentation into a Gold Age of maturity, infrastructure, and real-world… pic.twitter.com/878myUamrm

— Shibarium Updates 📢 (@Shibizens) April 3, 2025

The growing adoption of the network has not been enough to counteract the broader market trend. Investors appear to be focusing on overall market conditions rather than ecosystem developments.

Token Burns Struggle to Reduce SHIB Supply

The Shiba Inu community has long emphasized token burning as a strategy to reduce supply and support price stability. However, recent burn rates have remained inconsistent.

A recent surge in burn activity saw a 12,000% increase in tokens burned, but the past 24 hours have recorded a 60% decline in burn rate. Only 37.6 million SHIB tokens were removed from circulation in the last day, according to Shibburn data.

The low burn rate compared to the token’s vast supply has limited its effect on price movement. For a sustained price recovery, burn volumes would need to increase significantly over time.

Can SHIB Reverse Its Downward Trend?

SHIB’s trading volume has declined by 40% in the past 24 hours, reaching $199,186,562. Some market participants speculate that large holders may be accumulating at lower prices. However, without a shift in broader market sentiment or an increase in demand, SHIB could remain under pressure.

If current trends continue, analysts warn that SHIB may add another zero to its value, a scenario that could further challenge investor confidence.