The Shiba Inu ecosystem is experiencing a stark contrast between a widely criticized, negligible token burn and a subsequent major surge in burn activity that has coincided with a strong price recovery. Initially, a Shiba Inu burn rate tracker reported a burn of less than one full SHIB token, an event described as "ridiculous" and a "drop in the ocean" given the token's massive circulating supply of over 585 trillion. Critics argued that with billions of tokens flowing onto exchanges daily, burns of a few thousand or even millions are essentially meaningless and do not address the core structural issue of excessive supply chasing limited organic demand.
However, the narrative shifted dramatically as on-chain data revealed a 278% spike in the SHIB burn rate within 24 hours, removing over 15.2 million tokens from circulation. This surge in tokenomics activity occurred alongside a 35% price rebound for SHIB, lifting its price from a low of $0.00000684 to $0.000010 and boosting its market valuation above $5.5 billion.
Key metrics are painting a bullish picture. Data from Nansen shows a continued decline in SHIB supply on centralized exchanges, indicating investors are moving tokens to private wallets for holding rather than selling. Furthermore, futures market activity has soared, with open interest reaching $145 million—the highest since early October—signaling strong investor confidence. Technically, SHIB formed a falling wedge pattern on the daily chart, a formation often signaling a bullish reversal, and indicators like the Relative Strength Index are trending upward. Analysts are now eyeing the next key target of $0.000014, a level last seen in September.
