Bitcoin News Today: Shiba Inu (SHIB) Burn Rate Surges 4,547.78% in 24 Hours

Shiba Inu (SHIB) experienced a dramatic 4,547.78% increase in its on-chain burn rate within a 24-hour period, as reported by Shibburn, with approximately 3.7 million SHIB tokens permanently removed from circulation [1]. This represents one of the most significant deflationary spikes the token has seen in recent months. The burn activity involved multiple mid-to-large transfers directed to known null addresses, which effectively lock tokens and reduce the total supply. These actions are part of an ongoing effort by community members and large holders to shrink SHIB’s massive supply, which remains in the hundreds of trillions of tokens [1].

Despite the impressive percentage growth in the burn rate, the absolute volume of tokens destroyed remains relatively small in the context of SHIB’s overall supply. As of the latest data, SHIB’s circulating supply is estimated at approximately 5.89 × 10^14 tokens, with a market cap of around $7.5 billion. The recent burn event did not immediately translate into a material price movement, as SHIB traded near $0.00001281 with a slight decline observed during the reporting period [1]. Historically, such large single-day burns have not consistently driven price increases unless they are part of a sustained trend or involve much larger token volumes.

Burn activity is a key narrative in the Shiba Inu ecosystem, often promoted as a sign of commitment to the token’s long-term viability. However, observers caution that burn metrics should be analyzed in conjunction with other on-chain data, such as exchange inflows and outflows, liquidity levels, and broader market sentiment. For SHIB, with its extremely large supply, the symbolic value of these burns may outweigh their quantitative impact. The token would require sustained and significantly larger burn events—potentially in the billions or tens of billions of tokens—to meaningfully alter its supply fundamentals [1].

Burns are often initiated by a combination of automated mechanisms, community-led projects, and large holder actions. The three primary burn addresses tracked by Shibburn are widely used and publicly accessible, allowing for transparency in deflationary activity. Some burns are tied to tokenomics within decentralized applications, while others stem from one-time large transfers from whale wallets. These movements are sometimes coordinated as part of broader marketing efforts or community-driven initiatives aimed at reinforcing confidence in SHIB’s future [1].

While the recent burn surge is a notable event, it should be viewed within the broader context of SHIB’s market dynamics. The token has also seen significant whale-driven movements, including a large transfer of 300 billion SHIB tokens in early August that contributed to a 18% price drop [2]. Large holders continue to accumulate SHIB, with one wallet maintaining a 41% stake in the total supply. Analysts interpret this as a sign of institutional-like confidence, though it also underscores the centralization risks inherent in the token’s structure [2].

Market sentiment remains mixed, with SHIB trading in a tight range between $0.000011 and $0.000013. A key support level at $0.00001313 is being closely watched, as a successful defense could prompt a short-term rebound. However, a breakdown below that threshold may signal further downward pressure. Technical indicators remain bearish, with the head-and-shoulders pattern and weak RSI readings pointing to potential for a deeper correction. Traders are also monitoring the broader macroeconomic environment, including movements in Bitcoin and Ethereum, for clues about the direction of SHIB’s price action [2].

In the last 24 hours, SHIB’s price increased by 3.8% against Bitcoin, with a trading volume of BTC2,937.7270 [3]. While this marks a modest gain, it does not reflect the broader volatility seen in on-chain activity. Investors are now assessing whether the recent burn event will lead to a sustained recovery or remain a short-term deflationary signal with limited impact.

Analysts highlight that SHIB’s future remains highly dependent on whale behavior, continued accumulation, and the trajectory of burn activity. A sustained period of large-scale burns, combined with reduced issuance and increased use-case demand, could potentially drive the token higher. However, the risks of a breakdown remain significant, and investors are advised to use caution, setting stop-loss orders and closely tracking both accumulation and distribution trends [2].

The 4,547.78% surge in the burn rate is a clear indication of increased deflationary pressure, but it must be interpreted alongside the broader volatility and whale activity that continues to define SHIB’s market behavior. As the token moves into September 2025, market participants remain cautious, balancing optimism about on-chain deflation with concerns over short-term technical weakness and macroeconomic headwinds [2].

---

[1] CoinMarketCap, Shiba Inu (SHIB) Surges 4,547% in Key Metric, What Happened

https://coinmarketcap.com/community/articles/68ac2d11f1c7880937dac3dc/

[2] AInvest, SHIB 10 Billion Token Move: A Strategic Prelude to Potential September Rally

https://www.ainvest.com/news/shib-10-billion-token-move-strategic-prelude-potential-september-rally-2508/

[3] CoinGecko, SHIB to BTC: Shiba Inu Price in Bitcoin

https://www.coingecko.com/en/coins/shiba-inu/btc