Shiba Inu’s community destroyed more than 117 million SHIB tokens on July 8, marking the largest single-day burn in six months. The deflationary spike, tracked by Shibburn, sent the tokens to a dead wallet, permanently removing them from circulation.

The token has slipped nearly 9% over the past month even after a modest weekly gain. The asset has spent recent sessions confined to a narrow band, showing little sign of a breakout in either direction. That range has held even as burn headlines circulated across social media.

SHIB Burn Rate Jumps While Price Barely Moves

A wallet linked to Robinhood led the day’s burn activity, torching over 109 million SHIB tokens in a single transaction, Shibburn data shows. Several smaller wallets contributed the remainder throughout the day.

Despite the spike, Shiba Inu’s total supply destroyed since 2021 stands at roughly 410.84 trillion tokens. That figure has barely grown beyond one historic single-day event nearly five years ago.

Shiba Inu currently holds a market capitalization near $2.52 billion, ranking 36th among all cryptocurrencies, BeInCrypto data shows. Its circulating supply still exceeds 585 trillion tokens, dwarfing any single burn.

Even matching July 8’s pace for a full year would only trim a small fraction of that supply. The math explains why traders largely shrugged off the news.

Meme Coin Market Offers Little Support

SHIB’s stagnant price mirrors broader weakness across meme coins this year. Dogecoin recently faced heavy retail selling, while overall meme coin dominance has sunk to its lowest level in two years.

Sentiment around SHIB itself has soured further. Trader James Wynn recently called SHIB dead, even as whales dumped over a trillion tokens on exchanges in a single day.

Elsewhere, Shiba branding still drives speculation. A SpaceX-themed parody token built around a Shiba Inu mascot has rallied sharply in recent weeks, unlike SHIB itself.

Historically, meme coin rallies have tracked renewed retail interest rather than supply mechanics alone. Traders therefore appear unwilling to reward deflationary headlines by themselves. Burn totals keep climbing without a matching shift in demand.

Historic Burn Still Dwarfs Community Efforts

Ethereum co-founder Vitalik Buterin burned 410.24 trillion SHIB tokens worth $6.7 billion in May 2021, after receiving half the token’s supply as an unsolicited gift. That single event still accounts for nearly all tokens ever destroyed.

Recent market coverage suggests SHIB’s fundamentals hinge more on Shibarium adoption than on burn rates. Analysts have repeatedly flagged utility, not deflation, as the token’s core challenge.

Community burns may still build slowly over time. Whether Shibarium activity finally picks up, however, may matter more for SHIB’s next move than any single burn event.

Source: BeInCrypto