Evaluating Shiba Inu's Burn Strategy: Catalyst for Recovery or Marketing Mirage?

The Shiba Inu (SHIB) token has become a lightning rod for debate in the crypto space, with its aggressive token burn strategy sparking both optimism and skepticism. On one hand, technical indicators and deflationary metrics suggest a potential price rebound. On the other, fundamental challenges-such as limited real-world utility and competition from utility-driven projects-cast doubt on the sustainability of this narrative. This article dissects the duality of SHIB's trajectory, contrasting bullish technical signals with bearish fundamentals to assess whether its burn strategy is a genuine catalyst for recovery or a cleverly packaged marketing ploy.

Bullish Technical Signals: A Deflationary Narrative Gains Momentum

Shiba Inu's token burn strategy has entered hyperdrive in 2025, with burn rates surging by 28,554% in certain periods, erasing over 29 million SHIB tokens in a single 24-hour window, according to Coinotag. This aggressive supply reduction has coincided with short-term price gains, including a 2.45% rise to $0.00001049 and a 79% spike in trading volume, according to Coinotag. Weekly burn rates have also accelerated, with 61 million tokens burned in early November 2025, reflecting a 139.46% increase, according to Coinotag.

Technical analysts argue that SHIB's price action aligns with bullish patterns. The token has consolidated near key resistance levels, forming falling wedges and cup-and-handle formations, which often precede breakouts, according to CryptoNewsLand. Additionally, November has historically been a month of recovery for SHIB, with gains recorded in 2023 and 2024, according to Coinotag. Institutional recognition, such as Grayscale's inclusion of SHIB in its Consumer & Culture sector framework, further bolsters the case for a long-term uptrend, according to Coinotag.

Bearish Fundamentals: A Meme Coin's Identity Crisis

Despite the technical optimism, SHIB's fundamentals tell a different story. The token remains a speculative asset with no clear real-world utility, unlike newer projects such as Remittix (RTX), which is gaining traction for cross-border payments, according to CoinEdition. RTX's CertiK verification, live wallet beta, and partnerships with exchanges like BitMart and LBank underscore its practical value, contrasting sharply with SHIB's reliance on community-driven hype, according to CryptoPolitan.

Market share data also paints a grim picture. SHIB's open interest has plummeted to $100 million, a level last seen in 2024, marking an 80% decline over nine months, according to TradingView. This waning interest is mirrored in its price, which has fallen 88% from its 2021 peak. While SHIB's inclusion in T. Rowe Price's multicrypto ETF filing signals institutional curiosity, according to Coinotag, it lacks a standalone spot ETF application in the U.S., limiting its accessibility to traditional investors, according to CryptoPolitan.

Moreover, SHIB's deflationary model has yet to translate into sustained demand. Despite burning billions of tokens, the token's market cap remains at $5.29 billion, far below the $23 billion of Cardano (ADA), a project with a more established infrastructure, according to CoinEdition. Critics argue that SHIB's value proposition is increasingly outpaced by utility-driven competitors, reducing its appeal to long-term investors, according to CryptoPolitan.

The Paradox of Institutional Adoption

SHIB's inclusion in the FTSE Grayscale Crypto Sectors Framework under the "Consumer & Culture" category is a double-edged sword. While it validates SHIB's cultural significance, it also highlights its lack of tangible use cases compared to tokens like Ethereum or Solana, according to The Crypto Basic. This classification positions SHIB as a candidate for spot ETPs under the SEC's GLS framework, according to Coinotag, but it does not guarantee broader adoption.

Institutional investors remain cautious. For example, T. Rowe Price's multicrypto ETF includes SHIB alongside other assets, but this does not equate to a standalone product tailored to SHIB's unique risks and rewards, according to Coinotag. Meanwhile, projects like RTX are attracting attention for their practical applications, such as enabling direct crypto-to-bank transfers for freelancers and remittance senders, according to CoinEdition. This shift in investor preference toward utility-driven assets poses a long-term threat to SHIB's relevance.

Conclusion: A Fleeting Flame or a Sustainable Spark?

Shiba Inu's burn strategy has undeniably created short-term momentum, with technical indicators and institutional recognition fueling bullish optimism. However, the token's lack of real-world utility, declining market share, and intense competition from utility-driven projects like RTX and Cardano suggest that this momentum may be short-lived.

For SHIB to transition from a speculative meme coin to a legitimate investment, it must demonstrate tangible use cases beyond token burns. Until then, its recovery remains a high-risk bet-relying on a deflationary narrative that could either ignite a breakout or fade into crypto history as a marketing mirage.