Shiba Inu (SHIB), a leading meme cryptocurrency, has captured market attention with a staggering 6,858.37% surge in its burn rate, removing 18.9 million tokens from circulation in just 24 hours. This dramatic increase, reported on May 10, 2025, coincides with a price breakout exceeding 7%, signaling renewed investor enthusiasm. This report delves into the burn rate spike, price dynamics, and broader implications for SHIB’s future, offering insights for crypto investors and enthusiasts.
Explosive Burn Rate Surge
The SHIB burn rate, a key metric for reducing token supply, surged by 6,858.37% in the last 24 hours, according to Shibburn. A total of 18,902,967 SHIB tokens were sent to unspendable wallets, with the two largest transactions accounting for 17,823,884 and 1,070,924 SHIB. This aggressive burning reflects the SHIB community’s efforts to enhance token scarcity, potentially driving value appreciation.
The burns are facilitated through an automated portal on Shibarium, SHIB’s Layer-2 network, where 30% of gas fees (paid in BONE) are converted to SHIB and burned. However, the daily transaction count on Shibarium has dropped to 4.26 million, which may limit sustained burn activity.
SHIB Price Breakout
Concurrently, SHIB’s price rallied over 7% in a single day, marking a significant breakout. While exact price levels vary across exchanges, this surge reflects growing investor confidence, likely fueled by the burn rate spike and broader market optimism. The breakout aligns with positive macroeconomic developments, such as the US-UK trade deal finalized on May 8, 2025, which has bolstered risk-on assets like cryptocurrencies.
Technical indicators, such as rising trading volumes, support the bullish sentiment, though SHIB’s meme coin nature suggests caution due to potential volatility.
Weekly Burn Trends and Shibarium Activity
Despite the daily burn surge, weekly burns tell a different story. The weekly burn rate dropped by 89.3%, with only 55,017,003 SHIB burned over the past seven days. This decline is partly attributed to reduced activity on Shibarium, where transaction counts have fallen to 4.26 million daily. Lower network activity could hinder consistent burns, tempering the long-term impact of the daily spike.