Shiba Inu Burn Rate Surges Amid Market Pressure

TLDR

• 140 million SHIB tokens were transferred to a dead wallet.
• Burn rate increased by 222% on October 15, 2025.
• Market conditions continue to affect SHIB’s price performance.

Shiba Inu, the popular cryptocurrency, experienced a significant spike in its burn rate on October 15, 2025. This event occurred when an anonymous Coinbase user transferred 140 million SHIB tokens to a dead wallet. Despite a substantial increase of approximately 222% in burn rate, Shiba Inu’s price continues to face downward pressure.

The grassroots initiative highlights community efforts to reduce SHIB’s circulating supply. However, the action did not substantially impact the token’s value. As of the recent burn, the market remains dominated by broader trends that influence its price movement.

Community-Driven Burn Efforts

The recent SHIB burn originated from an individual effort rather than a coordinated institutional action. The Coinbase-linked wallet responsible indicates that the user’s intention was purely to destroy tokens. This pattern reflects the ongoing community-driven approach to SHIB’s deflation.

While such burns aim to reduce supply and potentially enhance value, historical patterns show limited long-term price impact. Notable whale activities continue, though, given the high concentration of assets in major wallets.

Impact on Shiba Inu Market Dynamics

Although the SHIB burn rate surged, overall market conditions have played a bigger role in its price performance. Current data reveals that large wallet holders dominate the supply, influencing market liquidity. As such, prices have not rebounded significantly despite high retention among holders.

Additionally, trade volumes show a decrease of 10.45%, signaling reduced activity in short-term markets. This pattern suggests that while deflation efforts are consistent, broader market sentiment remains a significant factor influencing SHIB prices.

Layer 2 Developments and Broader Market Trends

Shiba Inu’s Layer 2 blockchain project, Shibarium, continues its development without major updates coinciding with the recent burn event. Project leaders such as Shytoshi Kusama have not made statements correlating these incidents directly.

Despite the burn’s symbolic significance, market trends and the concentration of supply in top wallets suggest that broader conditions must change for substantial price recovery. Major influencers and developers have maintained silence on these recent developments.