Shiba Inu (SHIB) Sees a Massive Surge in Burn Rate by Over 2 Million Percent: What You Need to Know
Discover the reasons behind SHIB's recent surge in burn rate and what it may mean for the coin's price in the near future.
The second-largest meme coin by market capitalization has experienced a notable decline in price of over 10% in the past week. However, a new spike in the Shiba Inu burn rate suggests a potential relief rally might be on the horizon.
SHIB’s Rising Burn Rate
Shibburn, the X account that monitors the Shiba Inu team’s burn efforts, reported a staggering increase of over 2,000,000% in the daily burn rate, with over 2.2 million tokens being burned. While this number’s USD equivalent is minimal, ongoing efforts to reduce supply can increase the coin’s value over time. Since adopting the burn mechanism three years ago, around 410.75 trillion tokens are no longer in circulation, leaving 585.26 trillion available.
SHIB Supply, Source: Shibburn.com
Additionally, recent data from CryptoQuant reveals that more tokens are leaving exchanges than entering, suggesting that investors are moving towards self-storage solutions rather than holding onto assets in centralized platforms.
SHIB Exchange Netflow, Source: CryptoQuant
Thus, the total amount of SHIB on exchanges has decreased to around 80.5 trillion, a figure not seen since April 2021, typically signaling lower selling pressure.
Current Market Conditions
SHIB is currently trading at approximately $0.000008659, reflecting an 11% drop over the week, significantly below its peak valuation towards the end of 2024.
Related Insights
Some market analysts believe that Shiba Inu’s price revival is closely tied to developments surrounding its layer-2 blockchain solution, Shibarium. Bitcoin advocate, Jeremie Davinci, expressed earlier this year:
“I think Shiba Inu has a lot of utility now that they have Shibarium. However, nobody is using it, and there are no applications for using your tokens on Shibarium yet. If they manage to overcome this hurdle, Shiba Inu will significantly increase in value.”
While Shibarium had a successful run in processing millions of transactions daily during 2025, its security was compromised in September, leading to a drastic fall in usage.
Shibarium Transactions, Source: shibariumscan.io
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