SHIB prices plunged 90%, three reasons why Shiba Inu holders may face end

The 90% retracement has forced Shiba Inu holders to face a serious question: Is this a temporary downturn, or has the market abandoned SHIB?

The current trading price of SHIB is approximately US$0.0000473, and its trend chart is completely different from the craze period when Shiba Inu was the hottest meme coin in the cryptocurrency field. The recent rise is undoubtedly a breathing space for holders.

Data: How serious is the collapse of SHIB?

We reviewed the daily chart of SHIB over the past year and the decline was clear at a glance. At the end of 2025, the price of SHIB was approximately US$0.000016, and has now dropped to US$0.0000473, a cumulative decline of 70% in the past year.

From a higher perspective, the losses are even more severe. SHIB is still down about 94-95% from the historical high of US$0.00088 set in October 2021. This means that investors who bought SHIB at the peak are still deep in losses despite the recent rebound.

Unlike the cryptocurrency market, which has not seen such a huge decline in the current cycle, SHIB has performed worse than several mainstream currencies.

Reason 1: The destruction rate has little effect.

TheCryptoBasic reported that a total of 3.25 billion SHIBs were destroyed in July 2026, an increase of 1395% from the previous month. Although the percentage increase may seem staggering, the actual quantity is the key.

Since the launch of the project, more than 410.84 trillion SHIB tokens have been destroyed, accounting for 41.08% of the initial supply of 1000 trillion tokens. However, despite the huge amount destroyed, there are still approximately 589.24 trillion coins in circulation on the market.

The recent daily destruction volume is only 13.58 million SHIBs, accounting for about 0.000023% of the circulating supply. Because of this, many experts believe that most destruction is much more symbolic than economic. The largest destruction of SHIBs to date occurred in 2021, when Vitalik Buterin destroyed approximately 410 trillion SHIBs. If even that destruction fails to create a sense of scarcity, the monthly destruction of billions of pieces will have little impact on prices.

Reason 2: Whale activity and exchange inbound and outbound traffic

CryptoQuant's exchange net traffic chart shows that a large-scale outflow occurred in early 2025, with trillions of SHIBs transferred from exchanges to private wallets. This move is often interpreted as a whale sucking because the tokens are withdrawn from the trading platform.

The key detail lies in subsequent developments: SHIB prices will continue to fall in 2025 and even 2026. Recent net flow readings are relatively small, and there has been no similar wave of fundraising in the latest round of rebound.

In other words, the recent price rebound has not been accompanied by aggressive whale buying that would normally reinforce long-term bullish judgments. Concentration of positions is another concern. The top 100 wallets hold approximately 83% of SHIB tokens, while whale wallets account for more than 94%. Since most tokens are controlled by such a small group, their price influence cannot be underestimated.

Reason 3: It was seized by the younger meme coin

SHIB also faces competitive difficulties. Much of the activity surrounding memecoins has shifted to newer memecoins, which provide a new narrative, faster price movements and better room for speculation. The technical side also explains why traders remain cautious: SHIB prices have fluctuated between US$0.000035 and US$0.000045 for months before soaring slightly to US$0.000060, but quickly reversed and fell back to around US$0.0000047.

Meanwhile, traders 'attention has turned to the updated memecoin narrative. SHIB still has one of the largest communities in the cryptocurrency space, but maintaining a large community is not the same thing as attracting new capital.

Is there a way for SHIB holders to turn over?

Recovery is not impossible. Shibarium's second-tier network ecosystem, automated destruction mechanism and updated three-tier network plans may all increase network activity over time. The regulatory environment has also improved, such as the SEC's classification of digital assets as commodities and the inclusion of some crypto investment products in SHIB.

For SHIB prices to truly reverse, several key developments may be needed: first, Shibarium adoption must rise significantly; second, destruction must surge; third, wallet activity needs to be restored; and fourth, prices need to regain their footing and stay above the $0.000060 resistance.

But for now, the data suggests that the market has stabilized after the plunge, but there is no solid evidence of a sustainable upward trend. The current rally seems promising, but SHIB investors may need more signals to talk about a real reversal.

Frequently Asked Questions

Why has the price of SHIB dropped so much?

The current trading price of SHIB is approximately US$0.0000473, down approximately 70% in the past year and approximately 94-95% from the historical high in 2021. The decline was driven by weak sentiment in meme, weakening retail interest and the overall downward trend in speculative crypto assets.

Can SHIB be restored?

Recovery is possible, but may require stronger Shibarium adoption, higher destruction activities, renewed wallet growth and continued prices above $0.000060. Until these conditions improve, the market remains cautious about SHIB prices.