Shiba Inu (SHIB) is currently being hit by a "double whammy": it is suffering from the broader crypto market crash while also facing some specific internal identity and supply issues.

​As of early February 2026, here is exactly what is going on with SHIB:

​1. The "Whale" Factor and Sell Pressure

​In the last 48 hours, on-chain data showed large "whales" moving billions of SHIB tokens onto centralized exchanges. In the crypto world, moving coins to an exchange is usually a signal that a large holder is getting ready to sell. This creates "downward pressure" on the price, causing it to drop even faster than Bitcoin.

​2. The Burn Rate Mystery

​A major part of SHIB's value comes from "burning" tokens (removing them from circulation) to make the remaining ones more valuable.

​The Problem: Recently, the burn rate has been highly inconsistent. In late January, it spiked 500%, but just yesterday, it dropped to zero for a 24-hour period. This inconsistency makes investors lose confidence in the "scarcity" narrative.

​3. The "Meme Coin" Struggle

​In a market crash (like the one we are in now due to the U.S. government shutdown), investors flee "risk-on" assets first.

​NVIDIA is a risky stock, Bitcoin is a risky crypto, but Shiba Inu is considered "ultra-risky."

​When people panic, they sell their SHIB to protect their cash. SHIB lacks the "institutional floor" that Bitcoin has, meaning there aren't many big banks or governments holding it to keep the price stable.

​4. Delayed Ecosystem Value

​SHIB's lead developer, Shytoshi Kusama, recently teased an "ultra-important" announcement regarding AI and a new Layer-3 privacy layer. However, the market is currently tired of "teasers." Investors are waiting for actual utility that makes the coin useful in the real world, rather than just more roadmap promises.

​Is it "Dead"?

​Not necessarily, but it is at a crossroads.

​The Support Level: Traders are watching the $0.0000072 level. If it falls below that, it could see a much deeper drop.

​The Potential Catalyst: If the Sunday announcement (Feb 1, 2026) regarding the AI expansion is substantial, it could trigger a "dead cat bounce" or a recovery rally.

​The Math Check: To reach the $1 dream people often talk about, SHIB would need a market cap of over $500 trillion—which is more money than currently exists in the entire global economy. It remains a speculative play.

​Are you holding SHIB right now, or were you thinking of "buying the dip"?