Shib's Value Plummets by an Overwhelming 96.68%, but There's a Redeeming Aspect Emerging
Shiba Inu (SHIB) Price Surges Despite Significant Drop in Burn Rate
The Shiba Inu (SHIB) burn rate has experienced a substantial drop of 96.68% over the past seven days, according to data shared by the Shibburn tracking service. Despite this decline, the SHIB price has increased by approximately 9% over the same period.
The drop in the burn rate can be attributed to fluctuations in large token burn transactions and shifting market activity. In contrast, the price increase was primarily driven by broader market rallies and investor sentiment, rather than burn activity itself.
In recent days, the SHIB burn rate had surged massively, with a spike of over 83,000% on August 13, 2025, resulting in around 88 million SHIB tokens being burned in a single day. This surge helped boost the SHIB price by around 5%. However, a decline in burn volume or daily burning activity by about 59% has also been reported, indicating that the daily collective burn process can be irregular and vary significantly.
Even when the burn rate drops, SHIB’s price can still rise due to factors like larger crypto market rallies, active trading volumes, and investor enthusiasm. Institutional moves and reallocation can also affect the price without directly linking to the burn activity. Thus, the recent 9% price increase in the face of a lower burn rate suggests that market forces other than token scarcity from burns—such as broad crypto market trends, investor speculation, and trading volumes—were responsible for driving SHIB’s price upward during that 24-hour window.
It's important to note that the SHIB burn rate and price do not always move in lockstep. A lower burn rate in a short period does not negate price increases if broader crypto market conditions and investor sentiment are strongly positive. Large burn events tend to boost prices by increasing token scarcity, but price increases can also be driven independently by market dynamics.
No financial losses are mentioned in this paragraph, and no other cryptocurrencies or financial markets are discussed. The SHIB price has risen from $0.00001285 to $0.00001401 since Friday, but has since gone down slightly, trading slightly below today's price peak. The total number of SHIB coins destroyed over the past seven days is 20,923,735, with the recent burn accounting for 207,156 coins.
In related news, an executive order signed by U.S. president Donald Trump opened the path for 401(k) funds to invest in real estate and various cryptocurrencies, including Bitcoin. However, the impact of this order on the SHIB market remains to be seen.
- The rise in SHIB's price can be influenced by multiple factors such as broader crypto market rallies, active trading volumes, and investor enthusiasm, even when the burn rate drops.
- Despite a substantial decline in the SHIB burn rate, the crypto trading activity and investor sentiment continue to drive the price of SHIB, as seen in the recent 9% increase.
- The recent executive order signed by U.S. president Donald Trump has opened a path for 4k(k) funds to invest in cryptocurrencies like Bitcoin, but its impact on SHIB's market remains uncertain.
