Ethereum News Today: Shiba Inu Token Burn Rate Surges 1823% Amid Modest Price Recovery

Shiba Inu (SHIB) witnessed a 1,823% surge in its token burn rate on July 28, 2025, signaling a notable on-chain development amid a modest price rebound [1]. The spike in burning activity suggests that either holders or automated mechanisms are accelerating the removal of tokens from circulation, a move that could enhance scarcity and, theoretically, support price resilience. This development follows three consecutive days of price gains, pushing SHIB to a high of $0.00001315, although it remains significantly below its November 2024 peak.

The burn rate increase has been interpreted as a bullish on-chain indicator, reinforcing the token’s deflationary trajectory. Analysts have noted that sustained burning can contribute to controlled supply reduction, potentially stabilizing or elevating price in the long term [1]. This trend aligns with broader Ethereum market movements, as SHIB has historically performed well during Ethereum’s uptrends. Recently, Ethereum’s price surpassed $4,000 for the first time since late 2024, potentially offering a secondary tailwind to SHIB holders [1].

Despite these positive signals, SHIB faces structural headwinds that could temper expectations. The total value locked in Shibarium, SHIB’s layer-2 network, has declined by 7.15% in the past 30 days, currently standing at just $1.7 million. This indicates weak adoption and ongoing struggles in positioning the network as a viable blockchain infrastructure [1]. Additionally, the token’s daily trading volume has frequently dipped below $200 million, far below its historical averages, pointing to declining liquidity and demand.

From a technical standpoint, SHIB is currently trading below both its 50-day and 100-day moving averages and has formed a bearish pennant pattern. This chart formation, characterized by a converging trendline and a vertical flagpole, typically precedes a directional breakout. The pattern is nearing its apex, with analysts suggesting a likely downside breakout if the trendline is breached. A breakdown could see SHIB test support at $0.00001022, its year-to-date low, potentially opening the door for further downward momentum [1].

Separately, some speculative trading ideas on the SHIBF0/USTF0 futures pair have projected a 1,800% return from the June 2023 low [2]. While such a forecast reflects aggressive bullish sentiment among traders, it remains a speculative projection rather than a guaranteed outcome. SHIB’s performance continues to be influenced by broader market dynamics, including macroeconomic factors and the overall health of the crypto market.

In summary, the dramatic jump in SHIB’s burn rate is a positive supply-side development that may provide a technical foundation for future price action. However, the token still faces significant challenges in adoption and liquidity, which could limit its upside potential. Investors are now monitoring whether the burn rate trend continues and how it interacts with broader market conditions.

Source:

[1] https://crypto.news/will-shiba-inu-price-rebound-as-shib-burn-rate-jumps-1800/

[2] https://www.tradingview.com/symbols/SHIBUST.P/ideas//page-6/