A 90% drawdown forces Shiba Inu holders to ask a difficult question: is this a temporary slump, or has the market moved on from SHIB?
SHIB trades at a value of roughly $0.00000473, while the chart is still vastly different from the exuberant days when Shiba Inu was the most popular meme coin in the world of cryptocurrency. The latest upsurge is indeed a welcome respite for its holders.
What you'll learn 👉
The Numbers: Just How Bad Is SHIB’s Crash?
We took a look at the daily SHIB chart covering the past year, and the decline is easy to see. The SHIB price was around $0.000016 at the end of 2025 and has now declined to $0.00000473, representing a loss of 70% over the past year.
Taking the view from a higher level, the losses become even more significant. SHIB is still around 94-95% down from its record high price point in October 2021, which reached $0.000088. It means that those investors who have purchased SHIB at its peak are still in a hole due to the recent surge.
Unlike the crypto market, which has not experienced such losses compared to its highest point in the current cycle, SHIB has underperformed a few major coins.
Reason #1: The Burn Rate Isn’t Working
TheCryptoBasic shared that 3.25 billion SHIB was burned within July 2026, an increase of 1,395% from the previous month. Although the increase in percentages may appear impressive, the numbers matter most.
Over 410.84 trillion SHIB tokens have already been burned from inception, representing 41.08% of the initial 1 quadrillion tokens supply. Despite the enormous number of tokens burned, there are approximately 589.24 trillion tokens circulating in the market.
#ShibaInu’s token burn campaign gained remarkable momentum throughout July, with community burn tracker Shibburn reporting that the ecosystem permanently removed 3,248,854,065 $SHIB tokens over the past 30 days.
— TheCryptoBasic (@thecryptobasic) August 3, 2026
At the time of the report, the burned tokens were worth $16,575.…
A recent daily burn of 13.58 million SHIB represented only about 0.0000023% of the circulating supply. This is why so many experts believe that most burns are purely symbolic rather than economically significant.
The largest burn of SHIB tokens to date was done by Vitalik Buterin back in 2021 when around 410 trillion SHIB tokens were burned. If this burn couldn’t create a sense of scarcity, monthly burns worth billions of SHIB have even less effect on its price.
Read Also: Here’s How High Can Shiba Inu (SHIB) Price Go by September
Reason #2: Whale Activity and Exchange Outflows/Inflows
CryptoQuant’s exchange netflow chart shows one huge outflow event in early 2025, when trillions of SHIB left exchanges for private wallets. That type of move is often interpreted as whale accumulation because tokens are being taken off trading venues.
The important detail is what happened afterward: the SHIB price continued falling throughout 2025 and into 2026. The more recent netflow readings have been relatively small, with no comparable wave of accumulation appearing during the latest rebound.
In other words, the recent price bounce has not been accompanied by the kind of aggressive whale buying that would usually strengthen a long-term bullish case. Ownership concentration is another concern.
In the case of the top 100 wallets, there are around 83% of all coins, while the whale wallets account for over 94%. Since most of the tokens are held by such a small group, it can greatly influence the price.
Reason #3: Losing Ground to Newer Meme Coins
SHIB is also facing a competition problem. Many of the activities surrounding meme coins have shifted to newer meme coins which provide a new narrative, quicker movement in prices, and better speculation.
The technical picture helps explain why traders remain cautious. The SHIB price had been oscillating in the range of $0.0000035 to $0.0000045 for months, until there was a small spike to $0.0000060. This move reversed itself soon enough, and the price came back to the $0.0000047 level.
At the same time, trader attention has rotated toward newer meme-coin narratives. SHIB still has one of the largest communities in crypto, but maintaining a large community is not the same thing as attracting new capital.
Is There Still a Path Back for SHIB Holders?
A recovery is not impossible. Shibarium’s Layer-2 ecosystem, automated burn mechanisms, and newer Layer-3 initiatives could increase network activity over time. Regulatory developments have also become more favorable, including the SEC’s digital-commodity classification and inclusion in some crypto investment products.
For the SHIB price to stage a real turnaround, a few key developments could be required. Firstly, the Shibarium adoption rate would have to climb sharply; secondly, the number of burns would have to skyrocket; thirdly, the wallet activity would need to recover; and fourthly, the price would need to regain resistance around the $0.0000060 level and stay above it.
As for now, however, the numbers indicate that the market has steadied itself following a plunge but hasn’t been able to generate any reliable evidence of a sustainable uptrend formation yet. The current rebound looks promising, but the SHIB investors might need more to talk about a real turnaround.
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