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Over 12 million Shiba Inu were destroyed in the last 24 hours due to what might seems a solid 674% increase in the burn rate. The idea that a decreasing supply should increase scarcity and consequently value may initially seem like a strong bullish signal. However, the numbers actually show something quite different: the burn surge is essentially meaningless.
Shiba Inu burn rate
The total burned SHIB is currently at about 410 trillion tokens, which is essentially unchanged from prior months despite the notable increase in daily burns. Burning a few million tokens every day is insignificant given the total supply of Shiba Inu, which is estimated to be around 589 trillion. Even a spike in the burn rate of several hundred percent has very little effect on price dynamics at this rate.
It is also important to keep in mind that the majority of the burned SHIB supply originated in 2021, when Vitalik Buterin burned over 410 trillion SHIB after receiving the tokens as a gift from the project's founders. The great majority of the burned supply can be attributed to that historic transaction, which had nothing to do with the project's ongoing burn mechanisms.
Since then, SHIB's community-driven burns have not been large-scale reliable or truly useful. Nowadays, the majority of burns happen as a result of voluntary wallet transfers to null addresses; in other words, people send SHIB to the void for the memes.
Not best mechanism
There is not a built-in protocol mechanism that systematically lowers supply through ecosystem activity or transactions. In the absence of structural burns, these sporadic spikes serve more symbolic purposes than practical ones. In the meantime, the market shows how ineffective the burn hype was.
Despite the reported burn rate explosion, SHIB's price is still around $0.0000089, indicating no significant reaction. The truth is straightforward: SHIB's burn rate headlines will remain marketing noise rather than significant catalysts until there is a real sustained utility-based burning model — one that genuinely lowers supply at scale.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team