Shiba Inu Burn Rate Surges 8,470%; Could Affect Future Price, Say Experts

Shiba Inu (SHIB), one of the most well-known meme coins, experienced an 8,470 per cent increase in burn rate on March 25, 2025 when an anonymous wallet burned a considerable amount of tokens. The sudden increase has drawn the interest of experts and investors, leading to discussion about how it might affect SHIB’s price and future market movements.

In a single transaction, an anonymous wallet with the code 0x55B…182E3 burned 1 billion SHIB tokens, reports Shibburn. According to Binance, SHIB was trading at $0.00001305 at the time of the transaction, indicating the total value of the burned tokens at $13,050. It is a significant burn event that can affect the SHIB market dynamics, as well as ongoing efforts to reduce the circulation of the meme coin’s supply.

Etherscan records the same wallet burned 700 million SHIB on February 10, 2024, another 1 billion SHIB on August 7, 2024 and a further 1 billion SHIB on March 15.

What is Burn Rate

Cryptocurrency burn rate is the rate at which tokens or coins are removed from circulation permanently through a process called burning. To ensure that the tokens are un-retrievable and unusable again, they are transferred for burn to a unique address or dead wallet that lacks a private key. Coins are frequently burned in order to decrease supply and raise their value.

Shiba Inu Current Performance

Shiba Inu (SHIB) has increased by 11.57 per cent in the last 24 hours as on 26 March, 2025, according to coinmarketcap. With a market valuation of over $310.24 million, the meme coin is presently trading at $0.00001498 at the time of writing. This spike in price comes after a massive token burn event.

Sathvik Vishwanath, co-founder and CEO of Unocoin said the burning of tokens is not sufficient to support long-term growth even with the spike in SHIB’s burn rate.

He says: “The massive 8,470 per cent surge in SHIB burns has certainly grabbed attention, leading to a brief rise in SHIB’s price. By lowering the total quantity of tokens accessible, burns produce a sense of scarcity that could promote purchases. However, unless supported by consistent demand or strong foundations, such burning usually don’t have a long-lasting effect. For SHIB to maintain its value, it needs real utility like more use cases or adoption in the broader crypto space.”