Shiba Inu's Burn Boom Clashes with Bearish On-Chain Signs: Volatile Path Ahead?

Shiba Inu (SHIB) experienced an unprecedented 1,431% surge in its token burn rate within 24 hours, as reported by Shibburn data showing 1.07 million SHIB tokens removed from circulation. This spike follows a flash loan exploit in late August that reduced SHIB’s value by 5%, prompting analysts to label the recent consolidation around $0.000013 as a “tactical pullback” amid ongoing Shibarium upgrades and auto-burn mechanisms. Meanwhile, whale activity intensified, with over 7 trillion SHIB tokens moved on-chain, including 512 billion transferred from Kraken to undisclosed addresses.

Technical analysis highlights mixed signals for SHIB’s short-term trajectory. Crypto trader Javon Marks cited a confirmed bull signal, forecasting a potential +138% rally to $0.000032, emphasizing that “timing is the only variable”. However, on-chain metrics paint a bearish picture: Santiment data reveals a 66% drop in SHIB’s 24-hour active addresses from 16,770 to 6,852 between May 22 and 30. The Network Realized Profit/Loss (NPL) indicator showed three significant profit-taking spikes after a 32% price increase, while exchange-held SHIB supply rose from 74.56 trillion to 76.87 trillion tokens, signaling uncertainty among holders. Whale Transaction Count data also spiked, indicating institutional profit-taking.

The recent surge in burn activity contrasts with declining daily transactions on Shibarium, which fell below 4 million in late August. Despite these challenges, Shiba Inu’s ecosystem continues to evolve. Shibarium, its Layer-2 network, has faced scrutiny after a September 12 exploit drained $4.1 million in assets. The team responded with a 50 ETH ($229,000) bounty for the attacker’s return of stolen tokens and a detailed whitehat disclosure report. The incident involved a flash loan swap of 4.6 million BONE tokens to gain validator control, highlighting vulnerabilities in cross-chain bridge security.

Looking ahead, ChatGPT-5 projections suggest SHIB could see an 8x increase in a bullish scenario, targeting $0.000044–$0.0001 if it breaks above $0.000025. However, the token must navigate a fragile market environment. Santiment’s analysis warns that profit-taking and exchange inflows could prolong volatility, with SHIB potentially testing $0.0000105–$0.0205 levels before a recovery attempt. The broader meme coin sector remains speculative, with projects like BlockDAG drawing attention for its $62.5K daily rewards, outpacing SHIB’s burn activity.

Shiba Inu’s long-term resilience hinges on its ecosystem developments. Shibarium upgrades, token burns, and the ShibaSwap decentralized exchange aim to differentiate SHIB from pure meme coins like Dogecoin. While Dogecoin holds a $31.9 billion market cap and ranks 9, SHIB trails at $7.12 billion and 25. Despite this, SHIB’s deflationary mechanics and community-driven initiatives, such as the Roarblood Vault referral program and HODL Furnace staking, underscore its appeal as a utility-driven asset.

[1] Shiba Inu Burn Rate Surges 1,431% In Single Day: What Is Going On? (https://finance.yahoo.com/news/shiba-inu-burn-rate-surges-160317732.html)

[2] BlockDAG’s $62.5K Daily Rewards Outshine SHIB Burn and DOGE Breakout (https://blockchair.com/ru/news/blockdags-62-5k-daily-rewards-outshine-shib-burn-and-doge-breakout-best-crypto-buy-right-now--0404488cb56fb579)

[3] Three Reasons Why Meme Coin Enthusiasts Need to Stay Away (https://ch.headtopics.com/news/three-reasons-why-meme-coin-enthusiasts-need-to-stay-away-53531606)

[4] ChatGPT’s Cryptocurrency Analysis: BTC, XRP, Pepe and Shiba Inu (https://www.onedayadvisor.com/2025/08/chatgpts-crytpocurrency-analysis-btc.html)

[5] Shiba Inu Price Prediction at $0.00001302 as This Beast Tops the (https://www.dogehome.com/fr/article/shiba-inu-price-prediction-132-beast-tops-crypto-presales-buy.html)

[6] Dogecoin vs Shiba Inu: Compare Market Cap, Fees & Value (2025) (https://www.bitdegree.org/cryptocurrency-comparison/dogecoin-vs-shiba-inu)

[10] Shiba Inu Offers 50 ETH Bounty to Recover Shibarium Stolen Funds (https://thecryptobasic.com/2025/09/18/shiba-inu-offers-50-eth-bounty-to-recover-shibarium-stolen-funds/)

[11] Shibarium Hack: $4.1M Exploit Forces Bridge Shutdown (https://blocknews.com/shibarium-hack-4-1m-exploit-forces-bridge-shutdown-heres-what-you-need-to-know/)