SHIB Burns 110M Tokens, Its Biggest Burn in 6 Months, as Volume Craters 85%

Shiba Inu’s burn wallet absorbed roughly 110 million SHIB on July 8, the largest single-day token destruction in six months, yet the removal barely registers against a circulating supply of approximately 585 trillion tokens. The event coincides with a sharper structural problem: SHIB’s daily trading volume has collapsed from roughly $637 million in July 2025 to a $50–$100 million range today, an 85%-plus decline that leaves the token exposed to outsized moves on thin order flow.

On-chain data shows the burn mechanism, activated in 2022 to tighten supply, has now destroyed more than 410 trillion SHIB in total, with a large share of that volume attributed to contributions from Ethereum co-founder Vitalik Buterin. Despite the cumulative total, the dollar value of tokens removed remains negligible relative to supply, and the mechanism has failed to generate the scarcity-driven demand that supporters had anticipated.

Liquidity thins as price stays pinned near lows

SHIB currently trades near $0.00000429, down roughly 8% over the past month and approximately 95% below its 2021 all-time high. Market capitalization has slipped to about $2.5 billion, dropping the token to roughly the 37th-largest digital asset by that metric, down from a former top-20 position.

COINOTAG’s proprietary 42-indicator support/resistance engine currently scores SHIB’s primary support at 72/100 and resistance at 66/100, with the 14-day RSI reading 34 — territory consistent with weak momentum rather than oversold reversal setups. Bitcoin dominance stood at 69.7% at the time of the reading, underscoring the broader capital rotation away from altcoins that has compounded SHIB’s liquidity squeeze.

Shibarium throughput has stalled since last year’s exploit

Shibarium, the ecosystem’s layer-2 scaling network launched in 2023, has seen daily transaction counts collapse from an initial multi-million-transaction pace to just a few thousand following an exploit that disrupted operations last year. On-chain explorers confirm the sustained drop-off, pointing to weak developer and user engagement on a network positioned as SHIB’s core utility thesis.

Sentiment has followed price and usage lower. Trader James Wynn recently described the token as old, dead and boring, suggesting any meaningful revival — if it comes — is more likely to be driven by nostalgia than fundamentals, and could be five to ten years out.

Paused projects show signs of life

Not every signal points downward. Mazrael, an advisor to the ecosystem’s flagship game and a longtime community figure, indicated that updates are coming for two paused projects: the Shiba Eternity card game and Shib: The Metaverse. Both were described as temporarily on hold while background development continues toward an eventual relaunch, though no firm timeline was given.

Shiba Eternity originally launched in October 2022 as a free-to-play mobile card game before the team began building a Play-to-Earn Web3 version on Shibarium, with closed beta testing progressing toward late 2024. Mazrael also noted that Shib: The Metaverse will be accessible through the Shib.io website rather than a standalone domain once it returns, following the deprecation of legacy SHIB domain infrastructure.

Read more: SHIB Metaverse Domain Lapses, Opening a Phishing Vector for the Ecosystem