Despite ongoing price declines, the Shiba Inu (SHIB) token burn rate continues to grow steadily. Data from Shibburn reveals that over 8 million SHIB tokens were sent to dead wallets in the past 24 hours—a modest 0.78% increase from the previous burn rate.
Rising Burn Activity Points to Growing On-Chain Transactions
The Shiba Inu burn rate has shown consistent growth over the past month. While recent spikes remain incremental, they signal gradual increases in on-chain transactions even during market downturns.
👉 Why SHIB burns matter for long-term price growth
SHIB Price Dips Despite Burn Rate Surge
While the Shiba Inu team actively burns tokens to reduce supply and boost valuation, SHIB's market performance remains bearish:
- Current Price: $0.000010 (0.47% decline in 24 hours)
- Weekly Performance: -2.05%
- Monthly Performance: -15.34%
Despite the slump, SHIB retains its position as the second-largest meme coin by market cap, trailing only Dogecoin (DOGE).
Could Shibarium Reverse the Trend?
Shibarium—an Ethereum Layer-2 solution developed by the Shiba Inu team—has garnered significant community attention during its testnet phase. Key potential impacts include:
- Transaction-Driven Burns: 70% of Shibarium gas fees convert to SHIB and are permanently burned.
- Lower Fees: Enhanced cost efficiency vs. Ethereum mainnet.
- Scarcity Mechanism: Reduced circulating supply may drive long-term price appreciation.
👉 How Layer-2 solutions like Shibarium work
FAQ: Shiba Inu Burns and Market Dynamics
Q: Why burn SHIB tokens?
A: Burns reduce circulating supply, theoretically increasing scarcity and price pressure over time.
Q: Does Shibarium’s launch guarantee SHIB price recovery?
A: No—while its burn mechanism supports scarcity, broader adoption and market sentiment remain critical.
Q: How does SHIB compare to other meme coins?
A: SHIB maintains stronger utility (e.g., Shibarium integration) versus purely speculative meme tokens.
Key Takeaways:
- Burn rates are rising despite price declines, signaling sustained on-chain activity.
- Shibarium’s transaction-driven burn mechanism could amplify scarcity if adoption grows.
- Short-term volatility persists, but structural upgrades may strengthen SHIB’s long-term ecosystem.