Shiba Inu (SHIB) has experienced a significant drop in its burn rate, falling by over 93% in just 24 hours. This comes as the meme coin’s price also slid by more than 10%, raising concerns among SHIB holders and investors. According to data from Shibburn, only 225,774 SHIB tokens were sent to dead wallets during the period an amount too small to impact the token’s overall supply meaningfully.
Burn Rate Has Little Effect on Circulating Supply
The SHIB ecosystem depends heavily on token burns to reduce supply and drive prices higher. However, with such a low number of tokens destroyed, the deflationary mechanism had almost no influence on the market.
Currently, SHIB’s total supply remains at 589.2 trillion tokens, while the circulating supply still stands at approximately 584.6 trillion. These figures highlight how insignificant the recent burns were in affecting SHIB’s inflationary pressure.
Related article: Mysterious Whale Withdraws 5 Trillion Shiba Inu from Coinbase Institutional Amid Market Crash
A breakdown of recent deflationary transactions shows that the majority involved less than 500 SHIB each. Most of these transactions fell in the 300 SHIB range. Notably, only one transaction exceeded 100,000 SHIB, resulting in the burning of just 149,463 tokens.
SHIB Price Slides, Volume Surges
Simultaneously, Shiba Inu’s price dropped to $0.00001347, down 10.19% from its recent peak of $0.00001507. Despite the price correction, trading volume surged by 64.11%, reaching $555.82 million. Analysts attribute the price drop to profit-taking, as some investors used the recent upward momentum as an exit point to minimize losses or lock in gains.
24-hour price chart Source: CoinMarketCap
Still, SHIB has gained approximately 20% in July, suggesting that investor confidence is not entirely eroded. Looking ahead, many investors remain optimistic about SHIB’s performance in October 2025, which historically has been the most bullish month for the meme-based cryptocurrency.
Related article: Will Shiba Inu Add a Zero? Bollinger Bands Reveal What SHIB Traders Should Know
Although Shiba Inu’s burn rate has collapsed, long-term holders remain hopeful. The recent dip may signal a temporary correction rather than a trend reversal, especially since historical data suggests stronger months ahead.
