The massive token burn that took place in the Shiba Inu ecosystem in the last 24 hours has turned investors’ attention back to this popular meme coin. Despite the sharp increase in burning rates, the price remains in decline, causing the market to ask “supply is decreasing, but why isn’t it increasing?” brought the question to the agenda. When December’s historical performance, technical indicators and other developments in the sector are evaluated together, a picture that is both hopeful and risky for Shiba Inu emerges.
Explosion in Combustion Rate Reduces Supply
According to Shibburn data, over 35 million SHIBs have been permanently removed from circulation in the last 24 hours alone. With a total of 35,386,697 SHIBs burned, the daily burn rate increased by more than 1,726%. It is stated that on a weekly basis, 116.6 million SHIB was sent to “dead wallets” and the weekly burn rate increased by more than 148%. This development reduced the total SHIB supply to 589.24 trillion.
Theoretically, since burning processes reduce supply, they put upward pressure on the price. However, in market practice, it seems that this effect is not always felt in the short term. As a matter of fact, the SHIB price decreased by 1.34% in the last 24 hours to 0.000007917 dollars. It’s not just the Shiba Inu who starts December on a negative note; Bitcoin 
$86,989.86 and Ethereum 
$2,804.64 Major cryptocurrencies, especially cryptocurrencies, spend the first days of the month in red. This shows that investors’ risk appetite remains low.
When we look at Shiba Inu’s performance in December, a mixed picture stands out. SHIB, which saw an increase of over 24% in December 2023, closed the months of 2021, 2022 and 2024 with serious losses. In particular, last year’s decline, which exceeded 20%, remains fresh in investors’ memories. On the other hand, some analysts do not completely rule out the possibility of a “relief rally” for SHIB, which closed November with a loss of more than 16%.
Technical Outlook and Other Signals in the Market
Technical indicators are currently oscillating between neutral and weak on the Shiba Inu front. The weakening of momentum and the strong resistance encountered in upward attempts cause the rises to remain short-lived. On the other hand, the lack of a strong selling wave below the $0.00000785 level indicates that the bears have started to lose power. This situation highlights two possible scenarios. If the price rises again to the $0.0000091 – $0.0000094 band, it may be possible to test higher levels, which is a psychological threshold. On the other hand, a clear break of the 0.00000785 support could drag SHIB to a new decline towards the $0.000006 region.
On the other hand, these developments specific to Shiba Inu are not independent of the news flow in the general crypto market. The recent increased institutional interest in Ethereum spot ETFs and ongoing ETF outflows on the Bitcoin side are directly affecting the altcoin market. In addition, the fact that the transaction volume in the Shibarium network increased again compared to November shows that the ecosystem gives positive, albeit weak, signals on the usage side. Analysts emphasize that permanent increases in network activity may have a healthier impact on the price in the medium term.
