Shiba Inu Burns 110 Million SHIB in Largest Burn in Six Months

SHIB News

Shiba Inu recorded its largest token burn in six months on July 8, removing roughly 110 million SHIB from circulation, yet the meme coin kept bleeding. The community-driven burn sent the tokens to a dead wallet, though the destroyed supply carried a negligible dollar value against the roughly 585 trillion SHIB still in circulation. On-chain data shows the burn mechanism, introduced in 2022 to make the token scarcer, has now torched more than 410 trillion coins in total, a large share of which was contributed by Ethereum co-founder Vitalik Buterin. Even so, the reduction barely dented supply, leaving Shiba Inu, a leading altcoin, under sustained pressure.

Fading liquidity underlines the challenge. On-chain data shows SHIB's daily trading volume has fallen steadily over the past twelve months, sliding from roughly $637 million in July 2025 to somewhere between $50 million and $100 million today. Thinning activity across automated market makers and centralized venues leaves the token more exposed to sharp moves on modest order flow. The decline mirrors broader disinterest in a coin that once ranked among the twenty largest cryptocurrencies. With demand receding, the record burn struggled to generate the scarcity-driven bid supporters had hoped for, reinforcing the token's bear market trajectory.

Shibarium, the ecosystem's layer-2 scaling network launched in 2023 to cut fees and boost throughput, has also lost momentum. After initially processing millions of transactions, daily activity on the chain has collapsed to just a few thousand following an exploit that disrupted operations last year. The stalled usage undercuts one of the project's core arguments for long-term value, since Shibarium was meant to anchor real utility beyond speculation. On-chain explorers confirm the sustained drop in transaction counts, signaling that developer and user engagement remain thin. For a network positioned as the backbone of the SHIB ecosystem, the prolonged quiet is a persistent concern.

The market backdrop remains harsh. SHIB's market capitalization has slipped to around $2.5 billion, dropping the token to roughly the 37th-largest digital asset after it once sat inside the top twenty. The coin trades near $0.00000429, down about 8% over the past month and roughly 95% below its 2021 all-time high. Sentiment has soured alongside the price: prominent trader James Wynn recently dismissed the meme coin as old, dead, and boring, suggesting any revival could be five to ten years away, driven by nostalgia rather than fundamentals. Once a magnet for bullish forecasts, SHIB now draws far more cautious projections from the trading community.

Not every signal points down. Shiba Inu community veteran Mazrael, an advisor to the ecosystem's flagship game, hinted at major updates ahead for two paused projects: the Shiba Eternity card game and Shib: The Metaverse. Responding to a community question, Mazrael said both had been temporarily paused but that plenty was in progress, with updates ready for their eventual relaunch. The comment suggested active development continues behind the scenes despite the public silence. For a project repeatedly criticized for stalled momentum, the tease of a coordinated relaunch offered supporters a rare reason for optimism, even though no firm timeline accompanied the remarks.

Context frames the ambition. Shiba Eternity first launched in October 2022 as a free-to-play mobile collectible card game before the team began building a Play-to-Earn Web3 edition on Shibarium, with closed beta testing progressing through late 2024. Mazrael indicated that when Shib: The Metaverse returns, it will be accessible through the Shib.io website rather than a standalone domain, following the decommissioning of legacy SHIB domains. The direction echoes a year-end letter from developer Kaal Dhairya at the close of 2025, which outlined expectations for 2026. Together, the signals suggest the team is consolidating its products even as market conditions stay difficult.

COINOTAG's proprietary 42-indicator composite S/R scoring engine rates SHIB's primary support at 72/100 (strong), anchored by the confluence of a Fibonacci retracement, the lower Donchian band, and a prior swing low. The nearest overhead resistance scores 66/100 (strong), driven by a Fibonacci pivot and the upper ATR band. Momentum is soft: our reading of an RSI near 34 shows SHIB just above oversold, alongside a neutral MACD and a sideways trend. The perpetual funding rate sits at a mild 0.0056%, signaling balanced positioning rather than crowded leverage. With the Fear & Greed Index at 22 (Extreme Fear) and Bitcoin dominance near 69.7%, losing the 72/100 support invalidates the base and opens deeper downside, while reclaiming the 66/100 resistance is the bullish trigger.