Shiba Inu Burn Mechanism Explained: Will the New Burn Strategy Push SHIB to $0.001?

Introduction

For most investors what they look for is either tokenomics, roadmap or utility. But much more is needed to know, one of which is token burn. For investors or traders of SHIB, Shiba Inu burn presents a promising value appreciation as fewer tokens will exist. Thus, creating scarcity, reducing supply and potentially boosting price. Is Shiba Inu burning a good or bad omen right now?

As for investors looking to know about SHIB’s next action, this article dissects the hidden trust. You’ll get to know how Shiba Inu’s Burn mechanism works – manual burns to automated burn as designed in Shibarium roadmap.

Table of Contents

• 1. Burning a Crypto Token: What It Means
• 2. Theoretical Impact of Burns vs Realistic Supply Dynamics
• 3. Can SHIB Reach $0.001? What Burners and Analysts Say
• 4. Monitoring SHIB Burns: How & What Matters
• 5. Risks & Why Burns Are Not a Guarantee
• 6. Practical Guide: What SHIB Holders Should Do
• FAQs – Shiba Inu Burn 
• Final Takeaways – Shiba Inu Burn Helps But They’re Not Magic
• Sources:
• How to Trade Crypto on BTCC?
• BTCC FAQs

1. Burning a Crypto Token: What It Means

Burning a token means the transmission of the token to a “dead wallet,” which is a wallet without a private key. Now that the tokens are transmitted, they will be untraceable and thereby taken out of circulation indirectly. The burning of the SHIB has its utilization and its ceremonies to fulfill.

Burn events like community burn, manual burns, and most recently, automated burns through Shibarium, have been a huge factor in the decrease of the Shib supply in the market.

Role of Shibarium in Enabling Automated Burn Transactions

The launch of Shibarium, the layer 2 scaling solution for SHIB. With this, a part of the costs incurred in the network will be responsible for burning the SHIB.

In short, each and every transaction made in Shibarium will incur a certain cost out of which a certain amount of SHIB will be burned. The purpose of this automation is to keep the supply pressure as low as possible while the network is active.

2. Theoretical Impact of Shiba Inu Burns vs Realistic Supply Dynamics

Burning reduces the supply in circulation, and with constant and rising demands, the price tends to increase.

This is how automated burning works- Automated through Shibarium’s system, every transaction works to ensure a steady decrease in supply.

Why Burns Could Be Different Than Price Increases

• Burns of even hundreds of millions or billions of SHIBs are still a fraction of the total number because, in fact, the daily burn rate is actually negligible according to some analyses in comparison to the number.

• Despite this, the price of SHIB remains susceptible to the volatile nature of the cryptocurrency market and the sentiments of the investor, irrespective of the burning process.

• The history of the industry reveals that many instances of burnouts represented only temporary spikes and had no long-run bearing upon the marketplace, implying that supply restraint is only a part of a puzzle.

3. Can SHIB Reach $0.001? What Burners and Analysts Say

For SHIB to attain $0.001 from the current value 0.00000849 as of early December 2025, the following will be required:

• Extensive and severe burns that reduced the supply drastically over a period of years;

• Significant and sustained growth of demand through adoption, utilization, and ecosystem value;

• Market Conditions Facilitating the Appreciation of Cryptocurrencies.

Nevertheless, there are doubts in the views of some market analysts. They provide the following evaluation: burns are beneficial, but the problem is not solved in full. For instance, large burns may not influence the price.

The burn strategy could just be the basis for a gradual scarcity approach, but the hope of meteoric growth simply from burning could be quite optimistic.

4. Monitoring Shiba Inu Burns: How & What Matters

• Burn Volume (Daily & Weekly) (via burn portals such as SHIB)

• The number of transactions in Shibarium

• Supply in circulation over time: Measuring net reductions in supply.

• Social sentiment (demand) or exchange inflows/outflows.

Where to Check

• Official tracking and portals where burn transactions are recorded

• Block explorers and Shibarium dashboards for fee burn analyses

• Accurate historical supply and price data sources: Trusted sources include BTCC Analysis and CoinGlass.

Take Note: Volume stability and growth in burns, coupled with the constant flow of demands, might give an indication of the value retention. But caution should be taken if there is an abrupt rise in the burn volume and subsequently the demands fall.

5. Risks & Why Burns Are Not a Guarantee

1. The supply is huge even now – Despite the burning of trillions, the supply is so huge that the burning action affects only a very small part of it each time.

2. Demand dependency – Demand should be constant or rising for burning to be an effective process. Demand that falls will not add value through burning.

3. Burn hype versus reality– Media burn hype or burn hype created in the local communities might hype the price but seldom delivers. 

4. Burn schedule– There is no burn schedule in the case of SHIB because the majority of burns in its scenario occur through the community or due to the number of transaction volumes, which are neither fixed nor guaranteed.

6. Practical Guide: What SHIB Holders Should Do

• Use burn trackers to analyze the official burn portals or use some block explorers, starting with checking burn activity.

• Observe Shibarium usage, as more usage may translate to more burns.

• Do not rely entirely on burn criteria. Burns must be considered one of many variables affecting value (utility, demand, macro environment).

FAQs – Shiba Inu Burn 

Q1. How many Shiba have been burned before now? 

Available data indicates that about 41% representing 140 trillion SHIB tokens have been burned so far.

Q2. How does the Shibarium burn mechanism work?

Every fee earned from each transaction on Shibarium is automatically used to burn SHIB. Thus, making Shiba Inu burn is an everyday activity and not just a one-time event.

Q3. Does burning SHIB guarantee price increase? 

No. Burning reduces supply but price increases require much more like high demand, ecosystem activities, macro events and investor sentiment.

Q4. Is Shiba Inu a good investment for 2026?

Yes, Shiba Inu is a good investment for a long term investor who’s not in haste to make quick bucks. But, it depends on a lot of factors. Make sure to equip yourself with relevant information. You can buy or invest in SHIB on a reliable platform like BTCC Exchange.

Q5. Should I buy SHIB because of burns?

Burns are a factor worth giving consideration but should not be the major reasons for investing in SHIB. More in-depth research should be done before trading any crypto asset.

Final Takeaways – Shiba Inu Burn Helps But They’re Not Magic

The burning mechanism of SHIB with the implementation of Shibarium brings in a phase of steps promoting a deflationary approach in the long run and making it worthy in terms of its value in the long run. It should be noted that the burning process alone will not be the cause to increase the price of SHIB from the prevailing value of $0.0000084 to $0.001.

For a better grasp of the basics and roadmap of crypto, and for tokenomics and strategic investment approaches, I recommend visiting BTCC Academy to avail free tutorials and guides to make informed decisions.

Sources:

1. Shib.io – SHIB Burn Explained: How the Community is Creating a Deflationary Future
2. Coincheckup- Shiba Inu coin burn mechanism

3. Tronweekly – Shiba Inu Burn Rate: Why SHIB Price Remains Stable Despite Record Burns

4. Coinstats – Shiba Inu Burn Rate and Its Impact on the Market 

Bottom Line: Do not invest in projects that offer unreasonable multiples based on a burning event. Educate yourself by learning more about tokenomics, supply dynamics, and cycles through reliable sources such as BTCC Academy.

See Also:

• Will SHIB Reach 1 Cent? 2025 Shiba Inu Price Prediction & Analysis
• Shiba Inu Whales Activity Surges: What It Means for SHIB Investors in 2025
• How to Use Crypto-Legacy.app for Automated Bitcoin and Altcoin Trading