Shiba Inu Price Slides as Token Burn Mechanism Stalls

Edgen Crypto

·Mar 06 2026, 15:02

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Key Takeaways

The price of Shiba Inu (SHIB) is facing downward pressure, diverging from a broader cryptocurrency market recovery. The decline coincides with an unexpected two-day halt in its token burn mechanism, a critical deflationary feature, raising concerns among investors about the project's tokenomics.

SHIB fell approximately 2.9% over 24 hours to trade at $0.00000549 as of March 6, 2026.
The price drop corresponds with two consecutive days of zero tokens being burned, pausing a key mechanism designed to reduce supply.
This inactivity in the burn protocol has soured investor sentiment, fueling concerns about the long-term management of SHIB's token supply.

SHIB Price Declines 2.9% as Burn Rate Hits Zero

Shiba Inu's token price fell approximately 2.9% over the past 24 hours to $0.00000549, extending its two-week losses to 12.5%. The decline on March 6, 2026, occurred while the broader crypto market showed signs of recovery, indicating specific weakness in SHIB's market structure. This price pressure coincides directly with a complete halt in the token's burn activity. For two consecutive days, the SHIB burn mechanism, which permanently removes tokens from circulation, has recorded zero transactions. The price has been confined to a narrow daily range between $0.000005454 and $0.000005661, signaling significant caution from traders.

Stalled Burn Mechanism Undermines Investor Confidence

The cessation of token burns damages a core component of Shiba Inu's value proposition. The burn protocol is designed to create deflationary pressure, theoretically supporting the token's price over the long term by reducing its total supply. The sudden and unexplained pause undermines confidence in the project's ability to execute its tokenomics strategy. A prolonged halt could lead to a further erosion of investor trust and community engagement, potentially triggering additional price depreciation as the deflationary narrative weakens.