Burning of 20 Million SHIBs: Will Shiba Inu Prices Skyrocket? (7/3/25)

Jakarta, Pintu News – Token burning is a strategy often used in the cryptocurrency world to increase the value of a digital currency. Recently, a massive burn of 20,000,000 Shiba Inu SHIB2.35%->Current SHIB PriceRp 0,209205022.35%Market CapRp 0Trading VolumeRp 0Circulating SupplyRp 0 was reported by on-chain data tracker Shibburn.

This transaction was carried out by an anonymous whale and was part of a daily burn that reached 20.79 million SHIB, increasing the daily burn rate by 34.24%. However, despite significant burning efforts, SHIB prices still continue to struggle in the market.

Effect of Token Burning on SHIB Price

The burning of Shiba Inu (SHIB) tokens aims to create deflationary pressures that could theoretically increase the value of those tokens. However, despite the reduced number of tokens in circulation, SHIB still has a huge supply of 589.25 trillion tokens. For example, on February 23, 40.45 million SHIB tokens were burned. However, just a day later, the price of SHIB decreased by 11%, following Bitcoin’s BTC2.51%->Current BTC PriceRp 1.378.479.2492.51%Market CapRp 0Trading VolumeRp 0Circulating SupplyRp 0 price decrease of 4.5%.

Regular token burns do reduce the number of tokens in circulation by diverting them to inaccessible wallets. However, the effectiveness of this deflationary strategy is still a matter of debate among investors and analysts. While the burn may have a long-term impact, other factors such as investor behavior and overall market conditions also greatly affect the price of SHIB.

Also Read: Arbitrum (ARB) Surges After Robinhood Entry: What Will Happen Next?

The Role of Social Media and Trading Volume

Social media has an important role in influencing SHIB prices, often more dominant than traditional economic factors such as supply and demand. Currently, SHIB’s Social Volume is at its lowest point in the past three months, reflecting a decline in market interest.

This drop in interaction is often an early indicator of a price drop, as the lack of renewed interest can make it difficult for SHIB to go up. In addition, SHIB’s trading volume has also seen a drastic drop.

From a peak that once exceeded $4 billion during the election “hype” period, it has now dropped to just $311.44 million. This drop in trading volume indicates a lack of market participation, which could exacerbate the bearish trend currently experienced by SHIB.

SHIB’s Future Prospects

While token burn could have a positive impact in the long run, SHIB still needs significant momentum and buying pressure to break out of the current bearish trend.

In the absence of new drivers, such as innovations in the project or increased adoption, it is difficult to see significant changes in the price of SHIB in the near future. Investors and market watchers should pay attention to various factors, not just token burn, to assess the future potential of SHIB.

Conclusion

With all the factors affecting the price of SHIB, it is clear that token burning alone is not enough to guarantee a price increase. The crypto market is heavily influenced by complex and often unpredictable dynamics, which require a deep understanding and the right strategy for successful navigation.

Also Read: Binance Attracts Investors After Bybit Hack, Funds Flow Increases Sharply!

That’s the latest information about crypto news today. Get more information about crypto academy from beginner to expert level only at Pintu Academy and enrich your knowledge about the world of crypto and blockchain.

Follow us on Google News to get the latest information about crypto and blockchain technology. Enjoy an easy and secure crypto trading experience by downloading Pintu Crypto via Google Play Store or App Store now.

Experience web trading with advanced trading tools such as pro charting, various order types, and portfolio tracker only at Pintu Pro. Click Register Pintu if you don’t have an account or click Login Pintu if you are already registered.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• AMB Crypto. 20M SHIB burned: Why does Shiba Inu’s price continue to struggle?. Accessed on March 6, 2025
• Featured Image: U Today