Shiba Inu burned more than 110 million $SHIB on July 8, marking the largest single-day total in six months, according to Shibburn. Weekly burns have climbed to 152 million SHIB over the same
Shiba Inu burned more than 110 million $SHIB on July 8, marking the largest single-day total in six months, according to Shibburn. Weekly burns have climbed to 152 million SHIB over the same period, adding fresh momentum to the token's long-running deflationary story.
Token burning works by sending SHIB to a wallet address that no one can access, permanently removing those tokens from circulation. Each transaction on the Shiba Inu network contributes a small portion of its fee to this process, making burns a continuous, community-driven activity.
The practice has deep roots. In May 2021, Ethereum co-founder Vitalik Buterin burned 90% of his SHIB holdings, worth $6.7 billion at the time, sending more than 410 trillion tokens to a dead blockchain address and taking them out of circulation.Buterin had been given half of SHIB's total supply in what appeared to be a marketing stunt. That single event remains the defining moment in SHIB's deflationary history and accounts for the vast majority of all tokens ever burned.
Since its inception, Shiba Inu has burned over 410 trillion tokens, shrinking its initial one quadrillion supply by more than 40%.
Despite the uptick in daily activity, the numbers remain modest relative to SHIB's enormous circulating supply. The circulating supply currently stands at approximately 584 to 585 trillion tokens, out of a total supply of around 589 trillion. Against that backdrop, a daily burn of 110 million tokens moves the needle only slightly.
The SHIB burn mechanism is a key deflationary strategy aimed at reducing the circulating supply in hopes of driving up demand and, ultimately, the token's market value. However, historical data indicate that burn spikes do not guarantee price appreciation, and SHIB has previously seen burn rates surge by thousands of percentage points without triggering a corresponding rally.
For now, the six-month high in daily burns signals renewed community activity, but a material shift in supply dynamics would require a sustained increase in volume well beyond current levels.
Sources:CoinDesk: Vitalik Buterin Burns $6B in SHIB Tokens, May 2021U.Today: SHIB Burned as Shiba Inu Deflation Mechanism Continues
