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Shiba Inu’s burn activity has reversed sharply this week after recording one of its strongest performances in months.
Over the past 24 hours, Shiba Inu witnessed the incineration of just 7.10 million $SHIB worth approximately $33 at current prices. This dramatic slowdown follows a period of intense burn activity that fueled optimism across the Shiba Inu community.
The latest figures represent a steep decline from the elevated burn levels recorded at the end of July, indicating that the recent momentum has cooled, at least for now.
Burn Volume Drops From Billions to Millions
The latest burn figures stand in sharp contrast to the final week of July.
As previously reported, Shiba Inu burn activity accelerated significantly on July 26 and July 27, with more than 1 billion $SHIB destroyed on each day. The surge pushed Shiba Inu’s monthly burn total above 3.2 billion $SHIB in July, marking its highest monthly burn in several months.
Following that milestone, many community members expected the trend to continue into August. However, burn activity has slowed considerably. For instance, only 1.38 million $SHIB, worth roughly $7, were burned on August 5, reflecting an 87.63% decline in the daily burn rate.
Although the latest 24-hour burn increased to 7.10 million $SHIB, it still represents only a fraction of the billion-token burns recorded less than two weeks ago. Despite the sharp decline in daily burns, longer-term burn statistics continue to paint a stronger picture.
According to data from the Shibburn tracking portal, the community has permanently removed 283.98 million $SHIB over the past seven days. Meanwhile, the 30-day burn total has climbed to 3.47 billion $SHIB, largely driven by the massive burn activity recorded in late July.
Community Debates the Impact on $SHIB Price
The latest slowdown has sparked mixed reactions across the Shiba Inu community.
Some investors argue that the reduced burn rate could weaken $SHIB’s deflationary mechanism and limit its price recovery if burn activity fails to rebound. Others, however, believe traders should focus on broader on-chain indicators instead of daily burn statistics.
One metric attracting attention is exchange activity. According to CryptoQuant, investors withdrew 127.9 billion $SHIB from exchanges over the past 24 hours. Such large exchange outflows are often viewed as a sign that holders are moving tokens into private wallets for long-term storage rather than preparing to sell.
Other Shiba Inu Metrics Continue to Weaken
Although exchange outflows provide a positive signal, several other ecosystem indicators remain under pressure.
Notably, Shibarium’s decentralized exchange (DEX) volume has remained at zero for days, underscoring subdued activity across the Layer-2 network. Moreover, Shibarium’s daily transaction count has declined to a multi-month low of just 636.
Meanwhile, $SHIB continues to struggle in the market. The token remains below the key psychological level of $0.000005 and currently trades at approximately $0.000004661.