SHIB Burn Rate Soars 2M% Amid 11% Price Drop

The Shiba Inu ecosystem has witnessed an extraordinary surge in token burning activity, with the daily burn rate increasing by over 2,000,000% according to data from Shibburn. This dramatic escalation resulted in the removal of more than 2.2 million SHIB tokens from circulation in a single day. While the immediate dollar value of these burned tokens remains relatively small, the cumulative effect of such burning activity contributes to making the meme coin increasingly scarce over time.

The burning mechanism has been a core part of Shiba Inu’s strategy for three years, with a total of 410.75 trillion tokens permanently removed from circulation through transfers to null addresses. This sustained effort has reduced the circulating supply to 585.26 trillion coins, creating a fundamental supply constraint that could potentially support price appreciation if demand remains stable or increases. The recent explosive burn rate, while representing a small absolute number of tokens, demonstrates continued community and developer commitment to the token’s deflationary model.

Concurrent with the burning surge, Shiba Inu has experienced significant exchange outflows that may signal reduced immediate selling pressure. Data from CryptoQuant reveals that outflows have surpassed inflows over the past week, indicating that investors are moving their SHIB holdings from centralized platforms to self-custody solutions. This shift in behavior suggests longer-term holding strategies among market participants.

The total amount of SHIB held on exchanges has dropped to approximately 80.5 trillion tokens, marking the lowest level since April 2021. This development is particularly noteworthy because when tokens leave exchanges, they become less readily available for immediate selling, potentially creating a supply squeeze if buying pressure increases. The combination of ongoing token burning and exchange outflows creates a fundamentally tighter supply situation for SHIB, even as the price struggles near current levels.

Despite these potentially bullish fundamentals, SHIB currently trades at approximately $0.000008659 according to CoinGecko data, representing an 11% weekly decline. This places the meme coin’s valuation well below the local highs achieved toward the end of 2024, highlighting the disconnect between short-term price action and longer-term supply dynamics. As the second-largest meme coin by market capitalization, SHIB’s performance often serves as a barometer for sentiment across the broader meme coin sector.

The current price decline occurs against a backdrop of mixed signals for the cryptocurrency. While the burning mechanism and exchange outflows suggest potential supply-side support, the token continues to face challenges in establishing sustained utility beyond its meme coin status. This tension between supply reduction efforts and questions about fundamental value creation creates a complex investment thesis for market participants.

Many analysts believe that Shiba Inu’s potential revival depends heavily on the success of its layer-2 blockchain solution, Shibarium. Bitcoin advocate Jeremie Davinci articulated this perspective earlier this year, noting that while Shibarium provides the technical foundation for running various applications, the ecosystem currently lacks substantial usage. “I think Shiba Inu has a lot of utility now that they have Shibarium, and basically, it’s a chain that you can actually run all kinds of applications,” Davinci stated. “However, nobody is using it, and there are no applications for using your tokens on Shibarium yet. If they get that solved, Shiba Inu will go to the moon.”

Shibarium experienced periods of significant activity throughout 2025, with the network processing millions of daily transactions at its peak. However, the protocol suffered a security breach in September that dramatically impacted user confidence and ecosystem activity. Since the security incident, transaction volumes have plummeted, reflecting reduced usage and waning developer engagement with the platform. This decline in Shibarium activity represents a significant challenge for SHIB’s transition from a pure meme coin to a token with genuine utility and ecosystem value.