Shiba Inu's Surge in Token Burns Contrasts with Negative On-Chain Indicators: Is Turbulence on the Horizon?

According to Shibburn, Shiba Inu (SHIB) witnessed an extraordinary 1,431% jump in its token burn rate over a 24-hour span, with 1.07 million

tokens being eliminated from the supply. This dramatic increase happened in the wake of a flash loan attack at the end of August, which caused SHIB’s price to drop by 5%. Experts now view the recent stabilization near $0.000013 as a “strategic retracement,” especially as Shibarium enhancements and automated burn processes continue. At the same time, whale transactions surged, with over 7 trillion SHIB tokens moved on-chain, including 512 billion leaving Kraken for unknown wallets.

Technical indicators present an unclear outlook for SHIB’s near-term movement. Crypto analyst Javon Marks pointed to a verified bullish indicator and predicted a possible 138% upswing to $0.000032, stressing that “timing is the only variable.” On the flip side, blockchain data points to a more pessimistic trend: Santiment reports SHIB’s daily active addresses fell by 66%, dropping from 16,770 to 6,852 between May 22 and May 30. The Network Realized Profit/Loss (NPL) metric logged three major profit-taking events after a 32% price rise, and the amount of SHIB on exchanges increased from 74.56 trillion to 76.87 trillion tokens, suggesting holders are uncertain. There was also a spike in large-value whale transactions, reflecting institutional profit-taking.

The current burn rate explosion is at odds with the shrinking transaction count on Shibarium, which dipped below 4 million daily in late August. Even so,

Inu’s broader ecosystem is still advancing. Its Layer-2 network, Shibarium, came under scrutiny after a $4.1 million exploit on September 12. In response, the team offered a bounty of 50 ETH ($229,000) for the return of stolen tokens and released a comprehensive whitehat report. The breach involved a flash loan swap of 4.6 million BONE tokens to seize validator privileges, exposing weaknesses in the cross-chain bridge.

Looking forward, ChatGPT-5 models indicate SHIB could potentially multiply by eight in a bullish market, aiming for $0.000044–$0.0001 if it surpasses the $0.000025 threshold. Still, the token faces a fragile trading environment. Santiment cautions that ongoing profit-taking and increased exchange deposits may extend volatility, with SHIB possibly revisiting the $0.0000105–$0.0205 range before any rebound. Across the wider

coin landscape, speculation remains high, and projects like BlockDAG are drawing notice with daily rewards of $62,500—outpacing SHIB’s burn rate.

Shiba Inu’s ability to endure in the long run will depend on how its ecosystem matures. Ongoing upgrades to Shibarium, token burns, and the decentralized ShibaSwap exchange are all intended to set SHIB apart from traditional meme coins like

. While Dogecoin boasts a $31.9 billion market capitalization and currently ranks ninth, SHIB sits at $7.12 billion in market cap and ranks 25th. Nevertheless, SHIB’s deflationary strategies and its community-led efforts—such as the Roarblood Vault referral program and HODL Furnace staking—highlight its value as a utility-focused asset.

[1]

Burn Rate Surges 1,431% In Single Day: What Is Going On?

[2] BlockDAG’s $62.5K Daily Rewards Outshine SHIB Burn and

Breakout

[3] Three Reasons Why Meme Coin Enthusiasts Need to Stay Away

[4] ChatGPT’s Cryptocurrency Analysis:

, , and Shiba Inu

[5] Shiba Inu Price Prediction at $0.00001302 as This Beast Tops the

[6] Dogecoin vs Shiba Inu: Compare Market Cap, Fees & Value (2025)

[10] Shiba Inu Offers 50 ETH Bounty to Recover Shibarium Stolen Funds

[11] Shibarium Hack: $4.1M Exploit Forces Bridge Shutdown