Recently, the Shiba Inu (SHIB) community has once again demonstrated its strong token burning capability, with the burn rate skyrocketing by an astonishing 1680% in just one day. This incredible growth resulted in over 1.24 million SHIB tokens being permanently removed from circulation, worth approximately 15 million dollars.
01 What is the SHIB burn mechanism?
SHIB burning refers to the process of sending tokens to an inaccessible "dead wallet" address, where these tokens will be permanently locked and will no longer participate in circulation.
This mechanism is Shiba Inu The key strategy in the token economic model aims to enhance the scarcity of tokens by reducing the circulating supply, thereby creating space for price rise.
Community-driven burn activities are one of the core features of the SHIB ecosystem. Since its launch, over 410 trillion SHIB have been burned, with the remaining circulating supply being approximately 584.6 trillion SHIB.
02 Recent Burn Data Interpretation
Despite the huge percentage increase, the absolute quantity and value are still relatively small compared to the destruction activities of other cryptocurrencies. For example, in a destruction event on August 11, although the destruction rate rose by 158%, the actual value of the tokens destroyed was less than $10.
The burn rate also experiences significant fluctuations over different time scales. While the daily burn rate may surge dramatically, the weekly burn rate may show a declining trend. For example, in mid-September, the daily burn rate surged by 1932%, while the weekly burn rate dropped by 81.12%.
This volatility highlights the instability of community-driven burns; a single large burn event can significantly impact short-term metrics, but the long-term effects on supply dynamics require sustained effort.
03 The impact of burning on market supply and demand
Token burns directly affect the circulating supply of SHIB. Theoretically, reducing supply should increase scarcity, thus putting upward pressure on the price. However, for a token like SHIB with a total supply of around 589 trillion, sustained large-scale burns are necessary to have a substantial impact.
In addition to the burning activities, other market factors are also influencing the supply and demand dynamics. The reserves of SHIB on exchanges have fallen to their lowest level since June, currently at 2.78 trillion. Lower exchange reserves mean fewer tokens available for sale, which helps to alleviate downward pressure.
"Smart money" investors seem to have noticed these changes. Over the past 30 days, these investors’ SHIB holdings have increased by 62%, totaling 9.89 billion tokens. This accumulation usually indicates a recent Price trend Have confidence.
04 Price Trends and Technical Analysis
As of September 15, 2025, the price of SHIB on Gate is approximately $0.00001375, having dropped 5.15% in the past 24 hours. Nonetheless, the weekly chart still maintains an 11% rise.
Technical indicators have shown mixed signals of bullish momentum. The trading price of SHIB is slightly above the 50-day exponential moving average, indicating a recovery strength. The Relative Strength Index (RSI) has climbed above 50, boosting the momentum of buyers.
The chart pattern also provides optimistic reasons. A double bottom has formed around $0.00001020, which is a classic bullish reversal pattern. The MACD line has also crossed upwards, issuing a new momentum signal.
The next key test is near $0.00001585, which is the peak from July 21. A breakthrough at this level could open up space for further rise, while the support level is around $0.00001025.
05 Community Roles and Future Outlook
The SHIB community continues to play a key role in promoting burn activities and maintaining project momentum. The recent surge in the burn rate has motivated the community and reduced the circulating supply.
However, challenges still exist. Shibarium (the second layer network of SHIB) recently suffered a coordinated attack, where the attacker used a flash loan to purchase 4.6 million BONE tokens (another token in the SHIB ecosystem) and gained majority validator power.
For the future, analysts have made different predictions. Some bullish viewpoints suggest that if broader market conditions are favorable, SHIB may test the resistance level of 0.00001597 USD in the coming months, and might even reach 0.00014 USD by the end of the year.
However, achieving these goals will likely require a combination of consistent token burns, widespread adoption of Shibarium, and a positive trend in the overall cryptocurrency market.
Future Outlook
As of September 15, 2025, the price of SHIB on Gate is approximately $0.00001375. Although it has decreased compared to the previous day, it still maintains an 11% rise on a weekly basis.
The next few weeks are crucial. If the community can maintain a high burn rate and the technical support level holds, SHIB may test the key resistance level near 0.00001585. A breakthrough of this level could open up space for further rise.
In the long term, the sustainable development of SHIB’s price still relies on the continuous development of its ecosystem and the expansion of practical application scenarios.
