SHIB burn declines despite ongoing supply reduction

Weekly SHIB burn drops sharply in November 2025

In the past seven days, on-chain trackers recorded 46,597,909 SHIB tokens removed from circulation. Despite the nominal reduction in supply, this weekly figure represents a dramatic decrease in burn momentum compared with earlier periods — a fall of roughly 94% in the weekly burn rate.

On a 24‑hour basis the network saw 1,345,602 SHIB burned, a decline of about 33% versus the previous day. These figures point to lower active token removal even as the community and ecosystem continue to target long‑term supply contraction.

What the numbers mean: supply reduction vs burn rate

Burn events continue to chip away at Shiba Inu’s original token supply, which launched at 1 quadrillion SHIB. Current on‑chain aggregates indicate a circulating total near 589,246,313,129,194 SHIB, reflecting substantial cumulative burns since inception.

However, tokenomics and arithmetic are critical: a one‑time or short‑term burn of tens of millions of SHIB represents a very small percentage of the total outstanding supply. That reality explains why recent burns, while meaningful in isolation, have only a limited immediate impact on market dynamics unless sustained or scaled significantly.

Absolute vs relative impact

• Absolute tokens burned (e.g., 46.6M SHIB) reduce supply immediately, improving scarcity in theory.
• Relative change compared to circulating supply is minuscule; sustained burns or protocol changes are needed to shift supply curves materially.
• Market reaction depends on liquidity, concentration of holdings, and trader expectations — not just raw burn totals.

On‑chain indicators to watch

Beyond raw burn totals, traders and analysts monitor several metrics to assess the health and potential price implications for SHIB:

• Net token flows to and from exchanges — persistent inflows often indicate selling pressure, while outflows can signal accumulation.
• Active daily addresses and transaction counts — higher activity can precede renewed interest or speculative cycles.
• Large holder concentration and whale transfers — movements by top wallets may trigger volatility.
• Burn frequency and origin — burns originating from centralized sources differ in market impact from organic, community‑driven burns.

Technical backdrop: weekly death cross and price context

Technical indicators in November 2025 reflected subdued momentum for SHIB. A weekly death cross — where the 50‑week moving average crosses below the 200‑week moving average — was reported on longer timeframe charts, a signal often associated with extended bearish pressure or consolidation phases.

Price levels have retraced to lows not seen since late 2023 in some markets. Combined with lower on‑chain burn activity, these trends have reinforced cautious sentiment among traders heading into the year‑end.

Derivatives, exchange product rollouts and liquidity in 2025

Across 2025 the derivatives landscape evolved rapidly, with more trading venues launching perpetual and monthly futures, expanding accessibility to leveraged exposure for retail and institutional participants. This broader availability of derivative instruments influences SHIB markets in several ways:

• Increased leverage amplifies volatility and can accelerate price moves that affect perception of tokenomics efficacy.
• Round‑the‑clock trading on derivatives markets supports continuous price discovery, which can outpace the on‑chain burn cadence.
• Derivatives market depth and funding rates offer insights into market bias — persistent negative funding can indicate bearish sentiment, while elevated funding often signals bullish demand to hold longs.

These structural changes in market access mean that exchange listings and product rollouts remain important catalysts for short‑term liquidity and volatility, even if they do not directly change on‑chain supply.

Are token burns an effective long‑term strategy?

Token burns are a common mechanism to signal long‑term scarcity and support tokenomics. Their effectiveness depends on design, frequency, scale and market perception.

Key considerations include:

• Scale relative to total supply — small, sporadic burns produce limited scarcity effects compared with sustained programs that remove large percentages over time.
• Predictability — scheduled, transparent burn mechanisms can be priced in by markets, whereas unpredictable burns can create short‑term noise.
• Source of burns — burns funded by protocol fees or revenue may be more sustainable than burns driven by one‑off transfers.
• Community and utility — burns tied to active ecosystem usage (fee burns, NFT burns, in‑app mechanics) typically provide stronger narrative support.

Why recent burns didn’t move the market

The recent weekly decline in burn amounts did not materially change market pricing for several reasons:

• The quantum of tokens removed relative to circulating supply was too small to alter scarcity significantly.
• Market sentiment and macro forces — including broader crypto risk appetite in 2025 — have a larger influence on price than isolated on‑chain events.
• Derivatives-driven liquidity can offset the demand effects of burns, with leveraged positions producing amplified supply/demand swings.

Practical guidance for traders and holders

For market participants assessing SHIB in late 2025, the following checklist can help inform decisions:

• Monitor burn trends over multi‑week to multi‑month windows rather than single‑week snapshots.
• Track exchange net flows and on‑chain liquidity metrics to gauge selling pressure or accumulation.
• Watch derivatives indicators (open interest, funding rates) for signs of leverage build‑up or unwinding.
• Use risk management strategies: position sizing, stop losses and diversification given the token’s volatility.
• Consider fundamental ecosystem progress — adoption, partnerships and utility additions often have longer‑term price implications than isolated burns.

Broader 2025 market trends relevant to SHIB

Several macro and industry trends in 2025 are shaping how burn mechanics and token performance interact:

• Regulatory clarity in key jurisdictions has increased institutional participation in digital asset derivatives, affecting liquidity and price formation.
• Growth of decentralized finance (DeFi) and on‑chain utility continues to reward tokens that integrate burns with real usage (for example, fee burns tied to active transactions).
• Market cycles in 2025 emphasize earnings and revenue‑backed tokenomics — ecosystems that demonstrate sustainable revenue are more resilient to speculative pressures.

Implications for SHIB’s ecosystem and community initiatives

Beyond price mechanics, burns remain an important community and governance tool. For SHIB, sustainable supply reduction strategies that align with ecosystem growth — such as burn mechanisms tied to platform fees, NFT activity, or community programs — can offer a more durable path to scarcity and value accrual.

Community engagement, developer activity, and clear utility roadmaps are likely to matter more over the medium term than ad hoc burn events.

How MEXC users can stay informed and trade responsibly

Market participants on MEXC and other regulated platforms can apply the following practices to stay informed:

• Use on‑platform charting and alerts to monitor technical setups, moving averages and momentum indicators.
• Follow on‑chain dashboards and reputable analytics providers for burn data, exchange flows and whale movements.
• Consider hedging via derivatives to manage downside risk or to express directional views with defined exposure.
• Keep a watchlist of ecosystem updates — token utility events, protocol upgrades, and partnership announcements can change fundamentals.

Conclusion

The recent weekly tally of 46,597,909 SHIB burned in November 2025 confirms that token removal remains active, but the steep decline in burn rate highlights the limits of small, sporadic burns in influencing market prices. With circulating supply still measured in the hundreds of trillions of tokens, sustainable scarcity will likely require larger or more systematic measures tied to real utility and revenue generation.

Meanwhile, evolving derivatives markets and increased trading access in 2025 continue to shape liquidity and volatility for SHIB. Traders and holders should weigh on‑chain burn trends alongside exchange flows, technical indicators and ecosystem developments when making decisions.

Staying data‑driven and risk‑aware will be essential for navigating Shiba Inu markets as the tokenomics narrative and broader market structure evolve in the months ahead.

Disclaimer: This post is a compilation of publicly available information.
MEXC does not verify or guarantee the accuracy of third-party content.
Readers should conduct their own research before making any investment or participation decisions.