In the past 24 hours, Shiba Inu’s daily token burn rate has soared, sparking excitement in the community. Data released by the platform monitoring SHIB token burns revealed that more than 5.67 million SHIB were permanently removed from circulation in just one day. The 710 percent surge in burn rate marks one of the sharpest daily jumps in recent weeks.
Supply contraction intensifies
On May 11, the amount of SHIB burned saw a dramatic increase. Within a short span, the daily amount jumped from 700,000 SHIB to over 5.5 million. Over the past seven days, around 23.75 million SHIB have been burned, while the monthly total stands at 188.17 million SHIB. This trend underscores a significant contraction in Shiba Inu’s circulating supply throughout 2024.
Community-driven burn initiatives are designed to reduce the overall supply, aiming to place upward pressure on the price. Notably, large holders commonly referred to as whales have increasingly moved their assets off exchanges and into private wallets recently, amplifying the effects of the burn events.
Major outflows from exchanges
According to posts from Shiba Inu-focused social media account Shibizens, there were massive outflows from crypto exchanges over the past week, totaling 374 billion SHIB withdrawn. As a result, reserves held on exchanges fell to 82.31 trillion SHIB, reaching the lowest level so far this year. Whales, who control a substantial share of supply, continue to transfer their SHIB holdings from exchanges to their personal wallets.
For example, on May 10, a single wallet transferred 134 billion SHIB from Binance to cold storage. Developments like these are tightening the available supply in the market and could hold implications for SHIB’s future price movement.
Mixed price action amid macro news
Despite the heightened on-chain activity and ongoing supply squeeze, SHIB’s price slipped slightly in the past 24 hours, declining 0.24 percent to $0.000006536. Data from CryptoAppsy suggests this price does not yet fully reflect the recent supply contractions. More broadly, the crypto market remains mixed as traders keep a close eye on macroeconomic data releases due this week, particularly key inflation numbers.
In the United States, inflation in March rose by 0.9 percent, bringing the annual headline rate to 3.3 percent. This represents the largest monthly increase since June 2022. Core inflation, which excludes food and energy, is expected to rise from 2.6 to 2.7 percent year-over-year.
The US Federal Reserve has maintained its benchmark interest rate within the 3.5 to 3.75 percent range since December 2025. Amid ongoing macroeconomic uncertainties, new legislative efforts are emerging to provide comprehensive regulation for the US crypto sector.
The Senate Banking Committee has publicly unveiled the latest draft of the “Clarity Act,” emphasizing further structural reforms for the cryptocurrency market. Lawmakers are expected to fast-track the discussion of this proposal during a congressional session scheduled in the coming days.
Shibizens highlighted that 374 billion SHIB have been withdrawn from exchanges in the past week, with a single major transfer moving 134 billion SHIB from Binance to cold storage.
While SHIB’s burn rate and outflows point to decreasing supply, it remains to be seen how much these factors can offset broader market dynamics and external economic conditions.
Still, the combined effect of community-led burns and large-scale withdrawals may strengthen Shiba Inu’s price foundation if sustained over the longer term.
Investors and market watchers await upcoming US inflation figures and regulatory developments, which could play a decisive role in shaping the next phase for $SHIB.
