Shiba Inu Token Burn Sees Limited Price Impact

On May 25, 2025, the Shiba Inu community executed a burn of over 14 million tokens, though the price fell by 2.92%, creating debate over the effectiveness of burn strategies.

The burn event indicates potential limits to small-scale deflationary efforts affecting price dynamics, given the large circulating supply of Shiba Inu. Questions over long-term sustainability arose amid declining trading volumes.

Community Burns 14 Million Shiba Inu Tokens

The Shiba Inu community, known for its frequent burns, undertook a recent effort to reduce the token’s circulating supply by burning 14 million tokens over 24 hours. Despite being community-driven, with no major developer comments, the burn highlighted the challenges in impacting price due to an immense overall supply.

Token Burn Yields 2.92% Price Decline

Following the burn, Shiba Inu’s price declined 2.92%, and trading volumes saw a significant drop, reflecting a cooling off among retail traders. Historical data shows that similar burn events rarely create lasting price increases without broader market sentiment. Expert analysis suggests skepticism regarding long-term efficacy without increased platform utility.

“Despite recent burns, the effects on SHIB’s price and market sentiment remain minor due to the immense circulating supply.” — Shytoshi Kusama, Lead Developer, Shiba Inu

Past Burns Highlight Ineffectiveness Without Utility Boost

Similar past burns led to ephemeral price hikes, similar to the reactions seen for high-supply coins like Dogecoin. Transformation depends on more than just burning strategies. Experts from Kanalcoin point to historical trends, where burn events failed to alter market dynamics sustainably without significant ecosystem upgrades or adoption increases. Lil Disruptor shared a hot take on recent developments.