Shiba Inu (SHIB) Implements Token Burn Mechanism to Reduce Circulating Supply

Shiba Inu (SHIB), a prominent meme-based cryptocurrency, has implemented a token burn mechanism to reduce its circulating supply and potentially enhance its value.

Shiba Inu (SHIB), a popular meme-based cryptocurrency, has been burning tokens in an attempt to reduce the circulating supply and potentially increase the value of the token. To date, over 410 trillion SHIB tokens have been burned, which is about 41% of the initial one quadrillion supply.

The burning process involves sending SHIB tokens to inaccessible "dead" wallets, effectively removing them from the circulating supply. This strategy aims to create scarcity, which could positively influence the token's price over time.

Recent data from Shiburning.io highlights fluctuations in SHIB's burn rate. For instance, on February 27, 2025, the burn rate soared by 1,300%, resulting in 30.2 million tokens being burned within 24 hours.

Similarly, a 2,000% increase in the burn rate was observed in late January 2025, with multiple wallets contributing to the burn. However, despite these significant percentages, the absolute number of tokens burned often represents a small fraction of the total supply, limiting the immediate impact on SHIB's price.

The upcoming launch of Shibarium, a Layer 2 solution for Shiba Inu, is expected to enhance the burn mechanism further. Shibarium will allocate 70% of base transaction fees to burning SHIB tokens. This development could accelerate the reduction of the circulating supply, potentially affecting the token's value in the long term.

While SHIB's burn rate has seen notable increases, the vast total supply means that substantial burns are required to effect significant price changes. The community's ongoing efforts, coupled with technological advancements like Shibarium, aim to amplify SHIB's tokenomics and market position.