Investors Burn Millions of SHIB, But Price Won’t Budge

The SHIB token, the native cryptocurrency of the Shiba Inu ecosystem, witnessed a dramatic spike in the number of tokens burned in early September 2025, reaching 341,896% compared to the previous period. According to recent data, a total of 1.3 million SHIB tokens were burned during this time, contributing to a reduction in the token’s overall circulating supply. Token burns, which involve the permanent removal of tokens from circulation, are often used to drive up scarcity and, theoretically, increase the token’s value [1]. However, despite the significant burn volume, market observers note that the price of SHIB has remained largely unaffected, with no substantial movement observed in the days following the burn event [2].

The surge in token burns appears to be part of a broader strategy to improve investor confidence in the Shiba Inu ecosystem. The project has been gradually reducing its supply since its launch, with burns occurring through a variety of mechanisms, including the Shiba Inu token’s decentralized exchange and various automated burning tools. The latest burn spike is attributed to increased participation in these mechanisms by both large investors and smaller retail holders [3]. While the scale of the burn is notable, analysts highlight that the sheer volume of SHIB tokens in circulation—millions of billions—means that even large burns may not have a material impact on price unless accompanied by a corresponding increase in demand [4].

Market data also reveals that SHIB has maintained a relatively low price per token, with the recent burns occurring at a price point that does not reflect strong buying pressure. This has led some to question whether the token’s price is being driven by fundamental value or by speculative trading activity. A closer look at on-chain activity shows that while the number of unique wallets burning SHIB has increased, the average amount burned per wallet remains relatively low, suggesting a broad but not particularly deep market interest [5].

In terms of broader market sentiment, SHIB continues to be categorized as a meme coin, with much of its appeal rooted in community enthusiasm rather than traditional financial metrics. Despite the growing interest in token burns as a deflationary mechanism, the market for meme coins remains highly volatile and subject to rapid shifts in sentiment. Analysts caution that unless SHIB is able to demonstrate utility beyond its speculative value—such as through the adoption of its decentralized applications—its price performance is unlikely to break out of its historical range [6].

While the latest burn figures have generated headlines, they have not significantly altered the trajectory of SHIB’s price. Investors appear to be weighing the impact of the burn against broader macroeconomic conditions, including the performance of the wider cryptocurrency market and the actions of major institutional players. Given the limited price response to the 1.3 million token burn, it is evident that market participants are not yet convinced that the supply reduction alone will lead to a meaningful appreciation in the token’s value [7].

Source: [1] Shiba Inu SHIB Burns Surge 341,896% but 1.3M Tokens Burned May Not Move Price (https://example.com/shib-burns) [2] SHIB Burns Hit Record, But Price Stagnant (https://example.com/shib-price) [3] Shiba Inu's Latest Burn Strategy Gains Momentum (https://example.com/shib-strategy) [4] Meme Coins and Deflation: Does It Work? (https://example.com/meme-deflation) [5] On-Chain Activity Analysis for SHIB (https://example.com/on-chain-shib) [6] Meme Coins and the Path to Utility (https://example.com/meme-utility) [7] Cryptocurrency Market Analysis and SHIB's Role (https://example.com/cryptocurrency-shib)