Shiba Inu Burn Rate Soars: Will This Impact SHIB's Price?

Shiba Inu (SHIB) has recently caught the spotlight again, with its burn rate reaching unprecedented levels. A dramatic increase in the burn activity has led to the removal of nearly 28 billion SHIB tokens in a single day, sparking questions about its effect on SHIB’s price. 

This surge in burn rate—spiking to an astounding 3,255.93% over the past 24 hours—reflects the SHIB community's sustained efforts to reduce the circulating supply of the token, with hopes of boosting its value over time.

A Growing Effort to Tackle the Total Supply

The SHIB burn mechanism has been a crucial element in the ecosystem’s strategy to increase scarcity and, in turn, elevate the token’s value. To date, a total of over 410 trillion SHIB tokens have been burned from the original supply. 

While this might sound substantial, it’s worth noting that it still accounts for only a small fraction of SHIB’s total supply, which is a staggering one quadrillion tokens at its peak.

Currently, 589.25 trillion SHIB tokens remain in circulation, with 584.39 trillion actively circulating in the market. The remainder, approximately 4.85 trillion tokens, are staked in the Shiba Inu ecosystem under the xSHIB protocol.

This staking mechanism not only provides incentives to long-term holders but also plays a vital role in securing the network.

Read Also: Looking at SHIB's Burn Rate: How This Sentiment Can Push Its Price by 10%

Community-Led Burns: Increased Engagement and Participation

One of the key factors driving this burn surge is the growing participation of the Shiba Inu community. The most recent burn transactions reveal an enthusiastic and engaged user base, with large quantities of SHIB tokens being sent to burn wallets. In fact, the most notable burns include:

• 16.6 million SHIB tokens burned just 15 hours ago.

• An additional 10.8 million tokens were incinerated about 6 hours ago.

• A significant transaction of over 60.4 million SHIB tokens was completed three days ago.

These burns are part of a broader trend in which the SHIB community is actively removing tokens from circulation, contributing to the gradual reduction of supply. 

This action creates a deflationary pressure on SHIB, which many investors believe could eventually lead to price appreciation.

Read Also: Is SHIB Preparing for A Price Surge? Here's What To Do Next

Impact on SHIB's Price: Short-Term vs. Long-Term Outlook

As of the latest data, SHIB is trading at $0.00001228, reflecting a 2.1% increase over the past 24 hours. The token’s market cap currently stands at around $7.23 billion, with the community-driven burns likely playing a significant role in its recent price action.

However, while the increased burn rate creates a deflationary environment that could theoretically drive SHIB’s price higher in the long term, it’s important to note that price movement in the crypto market is influenced by a variety of factors. These include:

• Market sentiment

• Investor confidence

• Broader cryptocurrency trends

• Macroeconomic conditions

Despite the positive effects of these token burns, the price of SHIB may not immediately reflect this reduction in supply. Token burns often take time to influence price levels, as market dynamics and investor perceptions continue to play a pivotal role.

Read Also: Can Shiba Inu Climb More Than 10x in the Second Half of 2025?

Where Does SHIB Go from Here?

Looking ahead, current market indicators suggest that SHIB is well-positioned to potentially retest new price levels. With a strong support level established at $0.000011, there is optimism that SHIB could see further upward movement if the trend in burn activity and community engagement continues.

Moreover, as the Shiba Inu ecosystem continues to evolve, with increased staking and burn initiatives, the token's value could benefit from these long-term structural changes. Yet, investors and enthusiasts alike will need to remain mindful of the broader market forces at play.

Read Also: Should You Buy the Dip? Evaluating Shiba Inu (SHIB) and Dogecoin (DOGE)

FAQ

Q: What is the SHIB burn rate?
A: The SHIB burn rate refers to the number of SHIB tokens being permanently removed from circulation. Recently, the burn rate spiked by over 3,255.93% in a single day, indicating a significant increase in burn activity from the community.

Q: How much SHIB has been burned so far?
A: Over 410 trillion SHIB tokens have been burned from the initial supply. While this is a significant number, it still represents only a fraction of the total SHIB supply, which initially began at nearly one quadrillion tokens.

Q: How does burning SHIB impact its price?
A: Burning SHIB tokens reduces the circulating supply, which theoretically increases scarcity. In the long run, this could result in price appreciation. However, immediate price changes are influenced by several factors, including market sentiment and investor behavior.

Q: How many SHIB tokens are currently in circulation?
A: There are currently 589.25 trillion SHIB tokens in total, with 584.39 trillion of them circulating in the market. An additional 4.85 trillion tokens are staked within the ecosystem under xSHIB.

Q: Can the burn rate sustain SHIB’s price growth?
A: While the burn rate helps reduce the supply of SHIB and may positively influence the price in the long term, price growth will depend on other market factors, such as investor sentiment and broader cryptocurrency trends.

Q: What are the current price and market cap of SHIB?
A: As of the latest data, SHIB is trading at $0.00001228 with a market capitalization of approximately $7.23 billion.

Bitrue Official Website:

Website: https://www.bitrue.com/

Sign Up: https://www.bitrue.com/user/register

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.