The price of the Shiba Inu (SHIB) has remained under strong pressure this year as weak demand and fading market momentum continue to weigh on the meme coin. Far from falling prices, new data now shows this Shiba Inu Open Interest (OI) It crashed by over 30%, while its burn rate also slowed significantly. A decline in these key metrics indicates weak investor interest, lower trading activity, and lower network engagement. along with The ongoing price struggle for the Shiba InuThese increasingly bearish signals have raised concerns about whether the Shiba Inu is losing the power that once made it the second-largest meme in the cryptocurrency market.
Open interest for Shiba Inu crashes as prices fall
On May 27, data from Coinglass appeared open Shiba Inu open interest fell 6% to $49.4 million, indicating weak futures activity and… Investor confidence in the meme currency has declined. During the same period, Shiba Inu futures inflow declined by a staggering 190%, with outflows reaching $5.6 million, far exceeding previous inflows of around $4.74 million.
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Notably, this sharp decline pushed the net difference to $865,790 in total Shiba Inu contracts closed within 24 hours. The large outflow also wiped out approximately 156.56 billion SHIB tokens from the futures market, underscoring the continued decline in speculative trading activity.
Fast forward to today, the Shiba Inu’s open interest has dropped an additional 5.6% to approximately $46.44 million. This indicates that traders are still closing their positions at a rapid pace Bearish sentiment continues to prevail Market. The continued decline in leveraged activity also reflects weak sentiment among short-term investors, many of whom appear unwilling to place aggressive bullish bets on… SHIB recovery in the near term.
This downward shift comes as the price of the memecoin faces prolonged fluctuations and market volatility. According to CoinMarketCap data. The Shiba Inu has been on a steady decline All this month. Its price is down more than 14% in the last 30 days and more than 63% year-to-date.
At the time of writing, the memecoin remains in the red, with its recent price correction driven by increasing selling pressure and Decline in the price of Bitcoin. Other factors contributing to SHIB’s price decline are the broader weakness in the meme market, which has also affected coins e.g Dogecoin (DOGE).
SHIB’s burn rate drops to an all-time low
Another metric that has had surprising success is the Shiba Inu’s burn rate. According to meme burn tracker Shibburn, only $2 worth of SHIB tokens have been sold burnt on May 26, highlighting the sharp slowdown in activity and adding further pressure to an already bearish market.
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Notably, the Shiba Inu ecosystem is widely known for its conduct Widespread symbolic burnsWith many in the community believing that a continued decline in supply could create enough scarcity to support a future price explosion. However, recent reports on the chain now show that this is Usually an active burning mechanism He took a pause.
Shipburn also revealed that only about $11 worth of tokens were burned over the past 24 hours, representing just over 2.05 million SHIB. Last week, tokens worth less than $100 were removed from circulation, indicating weak interest in the meme coin and a clear lack of interest in helping reduce SHIB supply.
Featured image from Adobe Stock, chart from Tradingview.com
