Shiba Inu Burn Momentum Surges, but Daily Activity Signals Caution

Momentum around Shiba Inu (SHIB) intensified this year after community-led initiatives removed a significant volume of tokens from circulation. On-chain data shows a sharp increase in burn activity over the past week, lifting key deflationary metrics even as short-term participation softened.

According to data from Shibburn, SHIB holders collectively burned 194,735,741 tokens over the last seven days, pushing the weekly burn rate up by 534.94%. The spike was driven largely by a small number of coordinated, high-volume burn transactions, underscoring continued engagement from committed segments of the community.

Daily Burn Activity Slows Sharply

Despite the strong weekly figures, more recent data painted a less consistent picture. Over the past 24 hours, only 4,243,506 SHIB were burned, resulting in a 22.37% decline in the daily burn rate.

The divergence between weekly and daily data suggests that burn momentum remains uneven, relying heavily on sporadic large burns rather than sustained, broad participation. Analysts noted that without consistent daily contributions, burn-driven narratives may struggle to maintain influence over market sentiment.

SHIB Price Follows Broader Meme Coin Trends

Price action for SHIB has largely mirrored broader movements across the meme coin sector. Since December 31, SHIB gained approximately 36%, before momentum began to weaken.

Over the past day, the token fell 7.9%, trading near $0.00000863, despite the surge in weekly burn activity. This disconnect highlights a recurring theme in meme markets: burn data often supports sentiment but does not guarantee immediate price appreciation.

Burn Activity Rekindles Deflation Narrative

The scale of recent burns revived discussion around SHIB’s long-term deflationary strategy. Many community members continue to view token burns as a gradual supply-reduction mechanism designed to support value over time.

However, analysts emphasized perspective. Even burns approaching 200 million tokens represent only a small fraction of SHIB’s massive circulating supply. While the activity reinforces confidence among long-term holders, its direct impact on supply dynamics remains limited in the short term.

Analysts Point to Broader Meme Coin Signals

Beyond SHIB-specific metrics, analysts are also tracking wider meme coin indicators. A recent CryptoQuant analysis noted that meme coin dominance has fallen to historical lows, a condition that has preceded speculative rebounds in past market cycles.

The analysis highlighted early signs of recovery in the ratio between major meme coins and leading altcoins, suggesting potential capital rotation back into higher-risk assets. Still, analysts cautioned that confirmation will depend on sustained trading volume and supportive liquidity conditions.

Market Context Remains Key

While SHIB’s 535% weekly burn increase brought renewed attention to the token, softer daily figures underscored the fragility of burn-driven momentum without consistency. Analysts continue to stress that broader market conditions remain the dominant factor influencing meme coin performance.

For now, SHIB’s burn activity appears to function more as a sentiment signal than a standalone catalyst, reinforcing interest during transitional phases rather than driving price action on its own.