Shiba Inu Burn Rate Surges 1724.41% Weekly Amid Deflationary Drive

Shiba Inu (SHIB) has seen a dramatic spike in token burn activity, with 629,718,468 SHIB tokens burned over the past seven days—a 1724.41% increase compared to the previous week [1]. While the 24-hour burn total dropped by 35.01%, the broader trend remains bullish in terms of supply reduction. This deflationary effort has been driven largely by the SHIB community and has been amplified by mechanisms such as the “Shib Burn Frenzy” game, which leverages the Shibarium Layer 2 blockchain and the $BONE token to incentivize further token burns [2]. Some estimates suggest that such gamified approaches could increase burn rates by as much as 91,000% under optimal conditions [3].

Despite the significant reduction in supply, the SHIB price has remained relatively stable, currently trading at $0.00001219 with a market capitalization of $7.18 billion [1]. The token has seen a slight 0.25% increase in the past 24 hours, and a 1.47% rise in the last hour. However, this modest gain contrasts with broader market conditions, as the 24-hour trading volume has reached $247 million, and the market cap has experienced a 0.19% decline over the same period [2]. This disparity suggests that while token burns are contributing to supply contraction, they may not yet be translating into substantial price appreciation.

Analysts and community members remain divided on the long-term impact of these burns. The introduction of Shibarium and the use of $BONE to reduce gas fees and facilitate more efficient transactions have added a new layer of utility to the Shiba Inu ecosystem. $BONE, with a fixed supply of 250 million tokens, plays a governance and transactional role in the network and is expected to grow in significance as more decentralized applications (dApps) are integrated into the platform [3].

A notable event in recent days was a single burn of 600.7 million SHIB tokens, which led to a 16,700% spike in the burn rate within 24 hours [4]. Such large-scale burns, especially when tokens are sent to dead wallets, signal a strong commitment from the community to reduce the token’s supply permanently. The weekly burn total of approximately 627.97 million SHIB, representing a 364.72% increase, further reinforces this trend [5].

The long-term implications of these deflationary strategies are still unfolding. While some analysts, such as Javon Marks, have predicted a 500% price surge—potentially taking SHIB to $0.000081—these forecasts remain speculative and should not be conflated with actual on-chain developments [6]. Additionally, SHIB has faced periods of volatility, including declines of nearly 5% in 48-hour windows despite high burn volumes, raising questions about the extent to which the market is reacting to the deflationary mechanism versus broader market forces [7].

As the community continues to drive the narrative through tools like Shib Burn Frenzy and the integration of Shibarium, the focus will likely shift to whether these efforts can translate into consistent price momentum. The Shiba Inu project appears to be employing a multi-pronged approach to value creation, emphasizing not only supply reduction but also ecosystem utility, governance, and transaction efficiency [3].

Source: [1] Shiba Inu (SHIB) Burn Frenzy: Analyzing the Latest Token Burn Update (https://coinmarketcap.com/community/articles/688e0a96b534031aa86b65db/)

[2] Shiba Inu Burn Rate Skyrockets as Ecosystem Highlights BONE Token’s Potential (https://www.cryptoboom.com/shiba-inu-burn-rate-skyrockets-as-ecosystem-highlights-bones-potential/)

[3] Shiba Inu Hits a Milestone—Burn Rate Soars, 70% Rally in (https://www.bitget.com/news/detail/12560604892085)

[4] Shiba Inu Price Drops 3.279% Amid Whale Activity (https://www.ainvest.com/news/shiba-inu-price-drops-3-279-whale-activity-controversy-2508/)

[5] Shiba Inu coin News Today | Latest SHIB Updates (https://www.bitget.com/price/shiba-inu/news)

[6] Price Predictions for Shiba Inu, Litecoin, Remittix and Pepe (https://crypto-economy.com/top-cryptos-to-buy-targeting-the-top-10-price-predictions-for-shiba-inu-litecoin-remittix-and-pepe/)

[7] Shiba Inu Price Today | SHIB to USD Live (https://www.binance.com/en-BH/price/shiba-inu)