Shiba Inu's recent price surge is closely tied to an intense wave of token burns that removed almost 3 billion SHIB from circulation within seven days. This burn activity marks the largest weekly reduction in supply in about a year and coincides with a notable 17% price increase over the same period. The scale of these burns suggests a shift beyond mere speculative buzz toward a structural change influencing Shiba Inu's market dynamics.
One standout transaction alone accounted for the destruction of over 757 million SHIB tokens, permanently cutting down the available supply. Ecosystem participants such as Woofswap contributed additional burns, reinforcing the deflationary model that has been central to Shiba Inu since its inception. Tracking services like Shibburn report that burning activity remained solid into early August, with one 24-hour stretch seeing more than 124 million SHIB tokens removed a staggering 405% surge from the previous day. Cumulatively, over 410 trillion SHIB have been burned since launch, representing about 41% of the original one-quadrillion token supply.
Alongside the token burns, Shiba Inu's futures trading volume surged 81.1% week over week, reaching approximately $141.7 million daily according to CoinGlass. Market watchers are keeping a close eye on technical levels. Key support stands at $0.0000050, while resistance levels are eyed near $0.0000060, aligned with the 200-day EMA, and $0.0000070. However, large liquidation zones between $0.0000046 and $0.0000047 could cause short-term pullbacks if breached.
Bitcoin, by comparison, recently tumbled below $62,300 amid geopolitical tensions, showing how volatile crypto markets remain.
Shiba Inu's price climbed 17% as nearly 3 billion tokens burned in a record week.
This material is for informational purposes only and is not financial advice.
