The Shiba Inu (SHIB) community witnessed another round of token burning on May 24, 2025, with 14 million SHIB permanently taken out of circulation. While this move might seem like a step in the right direction, the market’s reaction was less than enthusiastic. SHIB’s price actually slipped nearly 7% in the same 24-hour period, raising the question: Is the SHIB burn strategy still an effective catalyst—or is broader market sentiment simply overpowering it?
Token Burn Continues—But Is It Enough?
The SHIB burn mechanism was introduced as a supply-reduction tool to help boost scarcity and, in theory, increase demand and price over time. As of now, approximately 410.7 trillion SHIB tokens have been burned, which sounds impressive—until you consider that the total initial supply was a staggering 1 quadrillion. In the last two days alone, nearly 37 million SHIB have been sent to dead wallets, but the rate of burning has slowed, down 39% from previous levels.
So far, the reality has been sobering: despite ongoing burns, the token has struggled to break out of its bearish spell. SHIB is currently priced around $0.00001450, with a market cap of $8.54 billion, following a 7% drop that closely tracked broader market weakness, particularly Bitcoin’s latest dip.
Market Forces Overshadow Internal Moves
It’s clear that token burning alone isn’t enough to move SHIB’s price significantly—at least not yet. The market appears to be reacting more strongly to macro trends, particularly shifts in Bitcoin and Ethereum, rather than to internal tokenomics like burns or supply adjustments.
In fact, according to analyst Crispus Nyaga, SHIB’s price tends to mirror Ethereum’s movements due to its roots on the Ethereum blockchain. That’s an important relationship to watch. With ETH making a push toward $4,000, the SHIB community may have more reason for optimism than today’s price action suggests.
Ethereum Rally Could Be SHIB’s Hidden Lever
Crispus’s analysis suggests that if Ethereum successfully rallies to $4,000—a level it hasn’t seen in quite some time—it could pull SHIB along for the ride. His bullish projection for SHIB under that scenario is a move toward $0.00001945 and potentially $0.0000221. These price levels could reinvigorate meme coin enthusiasm, especially among traders seeking high beta plays that mirror Ethereum’s performance.
However, this comes with a caveat. If SHIB fails to hold key support at $0.000012, it may risk revisiting its year-to-date low of $0.00001080—a bearish turn that would reflect broader market fatigue rather than a specific failure in Shiba Inu’s strategy.
Technicals Tell a Mixed Story
From a charting perspective, SHIB’s current structure shows signs of a possible rebound. The token is hovering above its 50-day weighted moving average, and an inverse head-and-shoulders pattern appears to be forming—a classic signal of a potential bullish reversal. Analysts are also eyeing the Ethereum chart, where a Golden Cross is forming (the 50-day WMA nearing a cross above the 200-day WMA). If that signal confirms and ETH breaks out, SHIB could see an echo rally.
Still, investors should be cautious. Technical indicators are promising but not guarantees. With meme coin sentiment cooling and attention shifting to stronger Layer-1s and AI-driven tokens, SHIB may need more than just burns and technicals to return to its former glory.
Final Thoughts
The latest 14 million SHIB burn is a reminder of the project’s ongoing effort to build long-term value through supply control. However, in today’s market, sentiment, macro trends, and Ethereum’s trajectory appear to play a far greater role in SHIB’s price direction.
For now, it’s not the burns but the blockchain it runs on—Ethereum—and the broader crypto mood that will determine SHIB’s next big move. Investors should watch for ETH’s performance, key technical setups, and broader altcoin trends to gauge whether SHIB is heading toward a rally or deeper consolidation.
