Shiba Inu is one of those altcoins that annoy as much as they intrigue. Far, very far from the dreamed and once proclaimed dollar, the token oscillates without a compass. The burns follow one
Shiba Inu is one of those altcoins that annoy as much as they intrigue. Far, very far from the dreamed and once proclaimed dollar, the token oscillates without a compass. The burns follow one another, but the falls remain more violent than the flaps of a butterfly’s wings. At one time, these massive destructions served as spectacular springboards. Yet, the operational magic seems to have lost its allure.
On July 8, 2026, the Shiba Inu community carried out its biggest burn in six months. More than 110 million SHIB were sent to dead wallets, permanently removed from circulation.
A wallet linked to Robinhood led the way by burning 109 million tokens in a single transaction. Smaller wallets completed the rest of the operation.
This massive destruction should have, in theory, supported the price. Yet, SHIB dropped 5% during the day and 9% over the month. The token now moves in a narrow range, unable to break its immobility.
Weekly burns rose to 152 million, a 55.77% increase. This surge in activity nonetheless did not convince the most seasoned traders.
Meanwhile, whales dumped more than 1,000 billion SHIB on exchanges, nullifying any positive effect of the burns.
Since its launch, the Shiba Inu community has burned over 410 trillion tokens. Yet, there are still 585.6 trillion SHIB in circulation. Even by maintaining the record pace of July 8 for an entire year, only a tiny fraction of this colossal mass could be reduced.
In May 2021, Vitalik Buterin, Ethereum co-founder, received half of the total SHIB supply as an unsolicited gift. He burned 410.24 trillion tokens, amounting to 6.7 billion dollars at the time. This single event still represents almost all SHIB ever destroyed.
Cryptosteel: The best devices to stay secureThis link uses an affiliate program.Recent community burns are therefore just a drop in the ocean. Trader James Wynn has even called SHIB “dead.” Whales continue to offload their positions, a sign that confidence is eroding.
The real problem is not on the supply side, but on the demand side. And demand is evaporating from the memecoin sector.
In the fourth quarter of 2024, memecoins represented more than 10% of the total altcoin market capitalization. Today, this share has fallen to 3.7%. Dogecoin has experienced heavy retail selling, while memecoin dominance reached its lowest level in two years.
Capital is fleeing the sector, and burns are not enough to reverse this heavy trend. Memecoin bullish cycles have always been fueled by renewed retail interest, not supply mechanisms. Traders therefore do not reward deflationary tokens in the absence of real demand.
Analysts believe that the adoption of Shibarium, Shiba Inu’s layer 2 blockchain, will have more impact on price than any burn. The real battle is happening elsewhere, on utility and adoption. As long as interest in memecoins does not return, burns will only have a marginal impact on prices.
No matter the challenges faced, Shiba Inu did not fail to shine at the end of June. The historic milestone of 1.6 million holders was reached. Proof that the community endures despite market tremors.
