The Shiba Inu (SHIB) token burn rate experienced a massive spike of 367.83% over the past week, primarily fueled by a single significant transaction where a whale incinerated 600 million tokens.
This surge in purposefully destroyed tokens coincides with a sharp 11.11% drop in SHIB’s market price. Analysts observe this drop mirrors a concurrent 2% decline in Bitcoin following news that asset manager Strategy acquired a substantial 21,021 BTC, valued at approximately $2.46 billion. This major Bitcoin purchase underlines institutional confidence even during market downturns.
Significant SHIB burns intentionally reduce the token’s circulating supply, which proponents believe could enhance scarcity and support long-term valuation due to basic tokenomics principles.
The close correlation between SHIB and Bitcoin price movements remains evident. SHIB’s sharp 11% correction directly followed Bitcoin’s slide, reinforcing the broader trend that Shiba Inu’s market price is heavily influenced by Bitcoin’s overall market trajectory.