Shiba Inu, the favorite cryptocurrency with the dog theme, has recently experienced a dramatic increase in its burn rate. On 25th March 2025, the burn rate increased by a record 8,470%! The drastic rise is largely due to the fact that an individual or individuals made a huge 1 billion SHIB tokens sent to a “dead wallet.” Consider a dead wallet as a closed box in which the tokens can never be made available or used again.
Why do tokens get burned?
The principle behind burning tokens is to lower the overall supply of coins. When there are fewer coins, the ones remaining can become more valuable if demand remains constant or increases. It’s similar to when a company repurchases some of its own stock; the value of the shares remaining usually increases.
What happened recently?
That, as reported by Shibburn, a tracker of SHIB burns, a particular wallet performed a transaction to burn 1 billion SHIB. During that time, such an amount equated to approximately $13,050. Interestingly, this same wallet has previously been known to conduct huge burns.
Apart from this massive burn, the Shiba Inu community is also responsible. They burned more than 1 billion SHIB through different small transactions in the last day. There was a group known as Shib Army Strong that also helped in burning some tokens. All of these combined brought about the record-breaking increase in the burn rate.
How much SHIB has been burned till now?
So far, more than 410.74 trillion Shiba Inu tokens have been permanently burned from circulation. This indicates a sustained community attempt to attempt to increase the price of their favorite meme coin.
Is this better for Shiba?
Most of the individuals within the Shiba Inu community are thrilled at the rising burn rate. They believe that by decreasing the supply, the price of SHIB will ultimately increase. But it’s also worth keeping in mind that the market for cryptocurrencies is volatile. Yes, burning coins is a good thing, but it is not the sole determinant of a coin’s price. General market trends, numbers of buyers and sellers, and Shiba Inu news or other developments also contribute substantially.
Simply put, the Shiba Inu community is diligently trying to make the coin less abundant by burning a huge amount of tokens. A big recent burn has seen the burn rate skyrocket, and everyone’s keeping their fingers crossed that it will drive the price up in the long term. But, as with all cryptos, no promises are made, and numerous factors can go into affecting its value.