Shiba Inu falls despite 110M token burn

• Shiba Inu fell about 5% even after the community completed its largest daily token burn in six months.
• More than 110 million SHIB tokens were burned in one day, lifting the weekly burn total above 152 million tokens.
• The data suggests weaker memecoin demand is outweighing the impact of lower token supply.

Shiba Inu (CRYPTO:SHIB) fell about 5% over the past week despite the community burning more than 110 million SHIB on July 8, marking the token's largest single-day burn in six months.

The latest burn increased the weekly total to more than 152 million SHIB, representing a 55.77% rise in the weekly burn rate, although the additional token destruction did not prevent further price declines.

Since launch, the Shiba Inu community has burned more than 410 trillion SHIB, while approximately 585.6 trillion SHIB remain in circulation, limiting the impact of recent burns on the token's overall supply.

The latest burn removed only a small fraction of the circulating supply, suggesting reduced supply alone has not been sufficient to offset weaker demand across the memecoin sector.

During the Q4 2024 rally, memecoins accounted for more than 10% of the total altcoin market capitalisation, but that share has since fallen to 3.7%, indicating capital has continued to leave the sector.

Token burns permanently remove coins from circulation by sending them to inaccessible wallet addresses, reducing available supply if market demand remains stable or increases.

The recent price action suggests Shiba Inu remains more influenced by overall liquidity and investor sentiment in the memecoin market than by its current token burn rate.

At the time of reporting, Shiba Inu price was $0.054291.