Shiba Inu has posted a 5% price surge following the overnight elimination of 61 million SHIB tokens from circulation, reigniting conversations about a potential supply shock in the meme coin market. With weekly gains now reaching 16%, SHIB holders are closely watching whether this burn event could catalyze a sustained bullish breakout.
Shiba Inu (SHIB) is making headlines once again as the popular meme cryptocurrency jumped 5% following a significant token burn that removed 61 million SHIB from circulation overnight. The move has sparked renewed optimism among investors who believe these deflationary measures could trigger a supply shock that pushes prices higher.
The second-largest meme coin by market capitalization has now posted impressive weekly gains of 16%, benefiting from both the token burn and a broader cryptocurrency market recovery. This upward momentum follows positive sentiment stemming from stronger-than-expected U.S. employment data, which has helped restore confidence across risk assets including digital currencies.
Token burns have become a central component of Shiba Inu's long-term value proposition. By permanently removing tokens from circulation, these burn events theoretically reduce supply while demand remains constant or increases, creating upward price pressure. The 61 million SHIB burned overnight represents the latest effort by the community to gradually reduce the token's massive circulating supply.
While 61 million tokens may sound substantial, it's important to contextualize this figure against SHIB's enormous total supply, which originally stood at one quadrillion tokens. Despite numerous burn events since the token's launch, billions of SHIB continue to circulate. For burns to create a meaningful supply shock, they would need to occur at a significantly accelerated pace or larger scale.
Market analysts remain divided on SHIB's near-term prospects. Bulls point to the combination of consistent burn mechanisms, growing ecosystem development including Shibarium layer-2 network adoption, and improving market conditions as catalysts for continued appreciation. The recent price action suggests accumulation by investors anticipating further upside.
However, skeptics caution that meme coins remain highly speculative assets subject to extreme volatility. SHIB's price movements often correlate strongly with broader crypto market sentiment and social media hype cycles rather than fundamental developments.
As Shiba Inu continues its recovery from recent lows, investors will be monitoring both the burn rate trajectory and overall market conditions. Whether this latest burn event proves to be the spark for a sustained rally or simply another temporary price spike remains to be seen, but the meme coin has certainly recaptured trader attention in recent days.