Shiba Inu’s burn activity has regained momentum, surging by more than 55% over the past seven days.
According to data from Shibburn, the Shiba Inu community burned 39.32 million $SHIB during the week, driving the weekly burn rate up 55.77%. The rebound follows a sharp spike in burn activity that saw 13.89 million $SHIB destroyed within hours, marking the network’s highest daily burn in about a month.
Daily Burn Rate Declines After Monthly Peak
Despite the strong weekly performance, daily burn activity has cooled significantly. At the time of writing, the community had burned approximately 3.68 million $SHIB over the previous 24 hours, reflecting a 69.41% drop in the daily burn rate.
Nonetheless, the broader trend remains positive, as monthly burn volume has surged more than 20% to 111.32 million $SHIB. As a result, while the community continues to remove tokens from circulation, daily participation has become increasingly inconsistent.
Large Supply Continues to Limit Burn Impact
Although burn activity has accelerated in recent weeks, it still represents only a tiny fraction of Shiba Inu’s massive token supply. Currently, $SHIB has a circulating supply of 585.61 trillion tokens. Since the project’s launch, the community has permanently removed 410.84 trillion $SHIB through 21,082 burn transactions.
Notably, Ethereum co-founder Vitalik Buterin accounted for the overwhelming majority of those burns in 2021 when he permanently destroyed roughly 410 trillion $SHIB.
Even so, it remains uncertain whether the community can sustain its recent burn momentum, particularly after the sharp decline in daily burns.
Ecosystem Challenges Persist
In the meantime, Shiba Inu’s holder count has continued to expand. The network has added more than 77,000 wallet addresses since the beginning of the month, a milestone that many community members initially celebrated as evidence of growing adoption.
However, the increase has also sparked controversy after community analyst Dark Shib claimed that much of the recent wallet growth may not reflect genuine adoption. According to the analyst, WoofSwap used a smart contract called “TheShibBull” to automatically generate new wallet addresses and send 1 $SHIB to each one. Since blockchain tracking platforms recognize any address holding $SHIB as a token holder, the process could artificially inflate the network’s holder count.
The controversy has added to broader concerns surrounding the Shiba Inu ecosystem. Shibarium’s decentralized exchanges have recorded almost no trading activity. The DEX has reported $0 in trading volume since June 24, briefly rising to just $3 on July 4 before returning to zero.
Exchange Outflows Point to Continued Accumulation
Despite the mixed on-chain indicators, investors have continued to move $SHIB off centralized exchanges. Over the past 24 hours, holders withdrew approximately 95 billion $SHIB from exchanges, while exchange netflows increased 2.58% during the same period.
At the time of writing, $SHIB was trading at $0.000004359, down 7.46% over the past month but up 2.49% over the past seven days.