Shiba Inu's (SHIB) burn rate surged 505% on Christmas Day, yet the meme coin's price remained muted as traders questioned whether the spike represented genuine momentum or merely a holiday anomaly.
The burn tracker recorded 5,984,918 SHIB tokens removed from circulation over 24 hours.
SHIB traded near $0.00000719 on December 25 and closed the session slightly lower.
The token showed no meaningful price response to the burn rate increase.
What Happened
The 505% burn rate jump appears dramatic as a percentage but represents a modest amount in absolute terms.
CoinGlass data shows the total burned supply stands at 410.75 trillion SHIB from an initial maximum supply of 999.98 trillion tokens.
The circulating supply currently sits at 585.28 trillion SHIB, with another 3.97 trillion staked as xSHIB.
Burn rate percentages compare activity to prior windows, meaning one larger batch against a low baseline can generate headline-grabbing numbers.
The Christmas spike follows a much larger burn event Dec. 19, when the rate exploded 3,915,071% as 21.6 million SHIB tokens moved to dead wallets.
That earlier spike also failed to lift prices.
SHIB has declined 1.5% over 24 hours despite the recent burn activity.
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Why It Matters
The disconnect between burn metrics and price action highlights a fundamental challenge for SHIB holders.
Traditional supply-reduction theory suggests decreased supply should drive prices higher when demand remains constant.
SHIB has not followed this pattern despite consistent burning activity.
Holiday timing may explain some reporting irregularities.
Community-driven tokens can see delayed or batched burn reports, creating statistical anomalies on slow trading days.
The key metric going forward will be sustained burn activity rather than single-day spikes.
If daily burn readings stay elevated and price declines halt, burns could become a meaningful market catalyst.
If burns return to normal levels, the 505% Christmas spike will remain just a festive outlier with no lasting price impact.
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