Despite strong on-chain fundamentals and growing investor activity, Dogecoin (DOGE) and Shiba Inu (SHIB) have seen their prices dip by nearly 5% over the past 24 hours. This downward movement comes amid rising burn rates for SHIB and increased whale accumulation for DOGE—typically bullish signals in the crypto market. So why are these meme coins slipping when the data suggests strength? Let’s dive into the latest metrics, on-chain behavior, and market sentiment to uncover what’s really happening behind the scenes.
Mixed Signals: Price Drops vs. Strong On-Chain Metrics
At first glance, the price action tells a bearish story. Dogecoin is trading around $0.1645**, with a market cap of **$24.4 billion, down 4.3% in the last day despite a slight weekly gain of 1.1%. Meanwhile, Shiba Inu hovers at $0.00001233**, with a market cap of **$7.3 billion, showing a similar 24-hour decline of 4.4%, though up 4.1% over seven days.
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Yet beneath the surface, the fundamentals paint a different picture. On-chain analytics reveal growing confidence among large holders and increasing network activity—signs that long-term strength may be building even as short-term traders take profits.
Shiba Inu’s Soaring Burn Rate and Network Growth
One of the most compelling developments in the Shiba Inu ecosystem is its accelerating token burn rate. According to Shibburn, 15.49 million SHIB tokens were burned in the past 24 hours, marking a staggering 529.9% increase in burn velocity. A single transaction alone removed 11.69 million SHIB from circulation just 22 hours ago.
Token burning reduces supply over time, creating potential scarcity—a key driver of value in deflationary crypto models. When combined with rising demand, this can set the stage for significant price appreciation.
Additionally, activity on Shibarium, Shiba Inu’s Layer-2 blockchain, has surged dramatically. Daily transactions jumped from 205,000 to 2.17 million in just three days—an over 1,000% increase—suggesting growing adoption of decentralized applications (dApps) and gaming platforms built on the network.
However, not all metrics are positive. Large transactions and daily active addresses dropped by 38.9% and 11.2% respectively in a single day, indicating a temporary pullback in user engagement. This could reflect profit-taking after recent gains or network congestion during peak usage.
Dogecoin Shows Bullish Technical Signals and Whale Activity
Dogecoin isn’t faring much better in terms of price, but technical indicators suggest a reversal may be near.
Crypto analyst Ali Martinez highlighted that the TD Sequential indicator is flashing a buy signal on Dogecoin’s 3-day chart—a pattern historically associated with imminent price bounces. Another trader, Tardigrade, noted that DOGE’s Stochastic RSI is exiting oversold territory, hinting that the current downtrend may be losing momentum.
On-chain data supports this optimism. Santiment reports a rise in wallets holding at least 1 million DOGE, a clear sign of whale accumulation. These large investors often buy during dips, positioning themselves ahead of potential rallies.
Moreover, DOGE’s active addresses recently hit a four-month high, with over 150,000 active addresses per day recorded between March 11 and March 16—the highest level since mid-November. Increased network usage typically correlates with growing interest and future price momentum.
Why Are Prices Falling Despite Positive Data?
The disconnect between strong fundamentals and falling prices isn’t uncommon in cryptocurrency markets. Several factors could explain this divergence:
- Broader market sentiment remains cautious due to macroeconomic uncertainty, including interest rate expectations and regulatory scrutiny.
- Profit-taking after recent rallies may be pressuring prices temporarily.
- Concentrated ownership structures amplify volatility; Glassnode data shows early SHIB holders accumulated over 20% of the supply at low prices and sold at key peaks, triggering sharp corrections.
- Meme coins are highly sentiment-driven, meaning they can drop quickly even when fundamentals improve.
In other words, while whales and long-term holders are accumulating, retail traders may be reacting emotionally to short-term noise rather than underlying value.
Shiba Inu’s Evolution Beyond Meme Status
Lucie, Shiba Inu’s marketing lead, recently urged Elon Musk to recognize SHIB’s transformation from a joke token into a serious ecosystem. She highlighted five major developments from 2021 to 2025:
- Shibarium L2: A scalable, low-cost blockchain enabling DeFi and NFT growth.
- Shib Games & Metaverse: Expanding play-to-earn and virtual world experiences.
- Major Partnerships: Integrations with real-world brands and platforms.
- Shib OS: An upcoming operating system for decentralized apps.
- Shib Torch: A community-driven initiative to fund innovation.
These advancements signal a shift toward utility and sustainability—critical for long-term survival in an increasingly competitive crypto landscape.
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What’s Next for DOGE and SHIB?
With Dogecoin showing technical buy signals and Shiba Inu’s burn rate accelerating, both assets appear poised for a potential reversal. However, sustained upward movement will likely depend on:
- Continued whale accumulation
- Broader market recovery
- Increased adoption of Shibarium-based applications
- Positive macroeconomic catalysts
Investors should monitor active address trends, burn rates, and exchange outflows as leading indicators of future price direction.
Frequently Asked Questions (FAQ)
Why is Shiba Inu burning so many tokens?
Shiba Inu burns tokens through transaction fees on Shibarium and community-driven initiatives. Increased burns reduce supply over time, potentially increasing scarcity and long-term value.
Is Dogecoin still relevant in 2025?
Yes. Despite its meme origins, Dogecoin maintains strong community support, high liquidity, and growing adoption as a payment method. Whale accumulation and technical buy signals suggest ongoing investor confidence.
What causes price drops even when fundamentals improve?
Crypto prices are influenced by sentiment, speculation, and macro factors. Even with strong on-chain data, fear, profit-taking, or broader market weakness can trigger short-term declines.
How does whale accumulation affect price?
Whale accumulation often signals confidence in future growth. When large holders buy and hold, it reduces circulating supply and can precede significant price increases once momentum builds.
What is the significance of Shibarium’s transaction surge?
A jump from 205,000 to 2.17 million daily transactions indicates growing usage of Shiba Inu’s Layer-2 network—proof of expanding dApp adoption and ecosystem vitality.
Can DOGE or SHIB rebound soon?
Technical indicators for DOGE suggest a near-term bounce is possible. For SHIB, sustained burning and ecosystem growth could drive recovery if market sentiment improves.
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Final Thoughts
Dogecoin and Shiba Inu may be down today, but they’re far from out. Behind the scenes, powerful forces—whale accumulation, token burns, network expansion—are laying the groundwork for potential future growth. While short-term volatility is inevitable, especially for meme-inspired assets, the long-term trajectory depends on sustained adoption and ecosystem development.
For investors, patience and data-driven analysis are key. Watch the whales, track the burns, and stay informed—because the next leg up could be just around the corner.
Core Keywords: Dogecoin, Shiba Inu, whale accumulation, token burn rate, on-chain metrics, meme coins, cryptocurrency price analysis