The Shiba Inu (SHIB) price has remained under strong pressure this year as
weak demand and fading market momentum continue to weigh on the meme coin.
Beyond the price decline, new data now show that Shiba Inu’s Open Interest
(OI) has crashed by more than 30%, while its burn rate has also slowed
significantly. The decline in these key metrics points to weakening investor
interest, lower trading activity, and reduced network engagement. Combined
with Shiba Inu’s ongoing price struggles, these growing bearish signals have
raised concerns about whether Shiba Inu is losing the strength that once made
it the second-largest meme coin in the crypto market. Shiba Inu Open Interest
Crashes As Price Plummets On May 27, data from Coinglass revealed that Shiba
Inu’s Open Interest had dropped by 6% to $49.4 million, signaling weakness in
futures activity and a decline in investor confidence in the meme coin. During
the same period, Shiba Inu’s futures flow plunged by a staggering 190%, with
outflows reaching $5.6 million, far exceeding the previous inflows of around
$4.74 million. Related Reading: Shiba Inu Could Stage A Return As 20% Move
Puts It Ahead Of Bitcoin And XRP In This Metric Notably, this sharp decline
pushed the net difference to $865,790 in total closed Shiba Inu contracts
within 24 hours. The heavy outflow also wiped out roughly 156.56 billion SHIB
tokens from the futures market, underscoring the ongoing decline in
speculative trading activity. Fast forward to today, Shiba Inu’s Open Interest
has dropped an additional 5.6% to around $46.44 million. This suggests that
traders are still closing positions at a rapid pace as bearish sentiment
continues to dominate the market. The continued decline in leverage activity
also reflects weakening sentiment among short-term investors, with many
appearing unwilling to place strong bullish bets on SHIB’s near-term recovery.
This bearish shift comes as the meme coin’s price experiences prolonged
volatility and market swings. According to CoinMarketCap’s data, Shiba Inu has
been on a steady decline throughout this month. Its price has fallen by over
14% in the last 30 days and by more than 63% year-to-date. At the time of
writing, the meme coin remains in the red, with its recent price correction
driven by increased selling pressure and a drop in Bitcoin’s price. Other
factors contributing to SHIB’s low price are the broader weakness in the meme
coin market, which has also affected coins like Dogecoin (DOGE). SHIB Burn
Rate Dwindles To Surprising Lows Another metric that has surprisingly taken a
hit is Shiba Inu’s burn rate. According to the meme coin’s burn tracker,
Shibburn, just $2 worth of SHIB tokens were burned on May 26, highlighting a
sharp slowdown in activity and adding more pressure to the already bearish
market. Related Reading: Recent Developments Show Why The Shiba Inu Price
Keeps Crashing Notably, the Shiba Inu ecosystem is widely known for conducting
large-scale token burns, with many community members believing that a
continued decline in supply could create sufficient scarcity to support a
future price explosion. However, recent on-chain reports now show that this
usually active burn mechanism has taken a pause. Shibburn also revealed that
only about $11 worth of tokens were burned over the last 24 hours,
representing just over 2.05 million SHIB. In the past week, less than $100
worth of tokens was removed from circulation, indicating weakening interest in
the meme coin and a clear lack of interest in helping reduce SHIB’s supply.
Featured image from Adobe Stock, chart from Tradingview.com

Shiba Inu OI Crashes Over 30%, SHIB Burns Grind To A Halt; Is This The End?

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