Shiba Inu burns 59.77 million tokens in a week, but supply impact remains limited

Burn Rate Trends Remain Low

The SHIB daily burn rate decreased by 15.80%. On a longer view, burn rates have also declined, with weekly figures down 28.12% and monthly figures showing a drop of 37.44%. This downward trend highlights a broader slowdown in the rate of SHIB token destruction, despite consistency in burning activity.

Over the past seven days, Shiba Inu holders collectively burned 59.77 million SHIB, translating to a value of around $251. Throughout the last 30 days, a total of 286.85 million SHIB tokens have been removed from circulation.

At present, the cumulative percentage of SHIB supply burned stands at 41.08%. This figure demonstrates ongoing efforts to reduce the available token pool, yet the scale remains insufficient to make a substantial reduction in the overall Shiba Inu supply.

Even with a total of 410,840,447,753,352 SHIB burnt across 21,266 transactions, including Ethereum creator Vitalik Buterin’s high-profile burn of 410 trillion SHIB in May 2021, experts believe the process is not moving fast enough to significantly reduce the token’s circulating supply.

Mini dictionary: Shiba Inu is a meme token based on the Ethereum blockchain, known for its extensive community and large circulating supply, often associated with themed burning mechanisms to decrease the number of tokens in circulation.

Market Sentiment and Price Performance

Shiba Inu’s price action has stayed relatively subdued, awaiting a clear catalyst for a potential uptrend. At the latest check, SHIB traded at $0.000004164, marking a 1.63% decline in the past 24 hours, but still showing a 0.82% gain for the week.

This pattern aligns with the broader cryptocurrency market, which saw a moderate pullback as flagship asset Bitcoin traded near $65,000. Most major crypto assets experienced minor declines during this period.

In macroeconomic news, US initial jobless claims for the week ended July 18 fell to 187,000, undercutting expectations set at 212,000 by analysts surveyed by Dow Jones. Despite this positive economic indicator, it had only a limited effect on the crypto market’s weekly trajectory.

Liquidity and Market Outlook

Weekly declines in major cryptocurrencies have barely changed the overall positive trajectory, with most assets still holding green for the week. There has been no single event triggering a major market reversal, with analysts observing more of a pause than a sharp correction.

CryptoQuant, a blockchain analytics firm, assessed the market’s liquidity situation and found stablecoin purchasing power to be stabilizing. However, these flows have not yet rebounded sufficiently to support a decisive uptrend in the broader crypto sector.

Looking ahead, the immediate price outlook appears neutral to mildly positive. Sustained positive net flows may benefit crypto prices, but a stronger rally would need to see exchange reserves holding steady and a persistent excess of new supply over redemptions.