SHIB Burns 110M Tokens in 6 Months High But Price Drops 5%

The Shiba Inu community burned more than 110 million SHIB tokens on July 8, marking the biggest single-day burn in six months, yet the token's price dropped 4.57% on the daily chart. Weekly burns climbed to 152 million SHIB, representing a 55.77% increase in burn rate, but failed to reverse SHIB's downtrend amid broader memecoin sector weakness. The memecoin market cap share declined from over 10% during the Q4 2024 rally to just 3.7% at press time, indicating sustained capital outflows that outweigh deflationary tokenomics effects.

SHIB Community Burns 110 Million Tokens With No Price Recovery

Token burns permanently remove tokens from circulation by sending them to dead wallets, reducing liquid supply available in the market. The Shiba Inu community burned more than 110 million SHIB on July 8, capping a week in which 152 million tokens were removed from circulation according to Shibburn data. The weekly burn rate increased by 55.77%, driven primarily by the single-day 110 million SHIB burn.

Source: Shiburn

Despite the accelerated burn activity, SHIB declined approximately 5% over the past week. Since launch, the SHIB community has burned more than 410 trillion SHIB, yet roughly 585.6 trillion tokens still circulate in the market. The recent 152 million weekly burn removes only a tiny fraction of the total circulating supply, failing to materially tighten available tokens.

Memecoin Market Cap Share Drops to 3.7% From Q4 2024 Peak

The memecoin sector's market capitalization share fell to 3.7% of the total altcoin market at press time, down from over 10% during the Q4 2024 rally according to CryptoQuant data. This decline indicates sustained capital outflows from the memecoin sector that offset SHIB's deflationary tokenomics.

Source: CryptoQuant

SHIB is down around 4.57% on the daily chart, continuing to diverge from typical scarcity-driven narratives. The ongoing outflow of capital from memecoins has more than offset the effect of reduced supply from token burns.

FAQ

What did the Shiba Inu community burn on July 8? The Shiba Inu community burned more than 110 million SHIB tokens on July 8, marking the biggest single-day burn in six months according to Shibburn data.

Why did SHIB's price drop despite the token burns? SHIB declined approximately 4.57% on the daily chart and over 5% weekly because the memecoin market cap share dropped to 3.7% from over 10% during the Q4 2024 rally, indicating capital outflows from the sector outweighed the deflationary effect of token burns.