SHIB Burn Rate Surges 388% as 3 Trillion Tokens Move from Coinbase Institutional

The Shiba Inu (SHIB) burn rate experienced an unprecedented surge of 388% in the week leading up to August 16, 2025, with over 102 million SHIB tokens burned during the period [1]. This marked a notable increase in community-driven supply reduction efforts, despite a nearly 59% decline in daily burning activity, which suggests fluctuating participation levels [1]. The surge in burns is attributed to increased token transfers to unspendable wallets, a common mechanism used to permanently remove SHIB from circulation.

Simultaneously, on the same day, Whale Alert reported a massive movement of 3 trillion SHIB tokens from Coinbase Institutional to an unknown destination wallet. Valued at approximately $38.2 million at the time of the transaction, the move has sparked speculation about potential strategic actions by institutional investors or internal asset reallocation by Coinbase [1]. Analysts have noted that large transfers from custodial wallets often signal either a liquidation event or a shift in asset management strategy, both of which could influence market sentiment and token valuation.

The confluence of these two events—the burn surge and the massive token transfer—has raised eyebrows among traders and market observers. While no immediate price reaction was observed, the scale of the activity has led to discussions about the potential for supply-side manipulation and its effects on SHIB’s market dynamics. The token has long been associated with high volatility and speculative behavior, making such events particularly significant in the broader context of its market profile.

Further, the timing of these events coincides with broader shifts in the crypto market, including inflows into Bitcoin ETFs and evolving investor preferences. However, SHIB's specific movements appear to be driven more by internal factors, such as custodian behavior and the mechanics of token economics. Analysts have not yet issued direct forecasts for SHIB’s future performance, but the magnitude of the burn rate increase and the size of the Coinbase Institutional transfer are expected to remain key points of discussion among investors and community members.

Investors are encouraged to closely monitor on-chain activity and institutional behavior as potential indicators of future price movements, especially given the token’s historical volatility and the ongoing interest in supply-side interventions.

Source:

[1] SHIB Burn Rate Surges 388% as 3 Trillion SHIB Moves from Coinbase Institutional. (2025, August 16). CoinOtag. https://www.coinotag.com