Shiba Inu Weekly Burns Hit One Year High

Shiba Inu's community removed nearly 3 billion tokens from circulation last week, with Shibburn data showing 2.98 billion $SHIB burned over a seven-day period. The total marks the largest weekly burn recorded in approximately one year, drawing renewed attention to the token's ongoing deflationary efforts.

Burn Activity Spikes Alongside Weekend Rally

The bulk of the activity was concentrated on July 26 and 27, days that coincided with a sharp weekend price surge for SHIB. A single transaction removed more than 757 million SHIB from circulation during that period. Woofswap, a decentralized exchange within the Shiba Inu ecosystem, also reported burning thousands of dollars worth of SHIB over the same stretch.

SHIB climbed 36 percent on July 26, adding roughly a billion dollars to the token's total value in a single session. The rally later faded, however, as whales likely took profits while retail traders joined late, with SHIB futures open interest dropping 13.79% to $55.53 million as traders reduced their positions.

Context: Burn Rate in Perspective

The weekly figure is a meaningful step up from recent norms. Earlier in July, Shiba Inu burned 39.32 million SHIB in a week as the burn rate surged roughly 56%, a figure that pales next to the nearly 3 billion removed last week. The deflationary activity, tracked by Shibburn, sends tokens to a dead wallet, permanently removing them from circulation.

Even so, approximately 585.6 trillion SHIB tokens remain in circulation, meaning removing billions in a week still represents a small fraction of the total supply. Whether the burn momentum translates into sustained price gains will depend on broader demand. After repeatedly defending the $0.0000042 to $0.0000044 demand zone, SHIB broke above a multi-month descending trendline that had capped every recovery attempt since January, a technical development that traders will be watching closely in the days ahead.

Sources:
The Crypto Basic: Shiba Inu Burn Rate Surges 55% With 39,320,000 SHIB Destroyed
Crypto Times: SHIB Price Rally Fades as Whale Selling and Retail FOMO Take Over
Benzinga: Shiba Inu Surged 27% as Burns Hit 365-Day High