Shiba Inu (SHIB) has witnessed an extraordinary spike in its burn rate, soaring by 2,085.71% in just a week. According to Shibburn, over 1.13 billion SHIB tokens have been permanently removed from circulation, significantly reducing the available supply.
This surge was largely driven by a single 1 billion SHIB burn initiated by a core SHIB team member. The transaction, worth around $18,800, was carried out as part of the ShibTorch V2 launch, an upgraded system designed to improve burn efficiency and community participation.
ShibTorch V2 Brings Faster Burns
The ShibTorch V2 upgrade aims to streamline SHIB burns by automating the BONE-to-SHIB conversion process on the Shibarium network. This means that transaction fees converted from BONE tokens to SHIB will be burned at a faster rate.
Additionally, the update allows other entities beyond Shibarium to participate in token burns, further enhancing SHIB’s deflationary mechanism.
SHIB Price Drops Despite Burn News
Despite the significant burn event, SHIB’s price saw an unexpected drop. After reaching a local peak of $0.00001968, the token fell by over 4%, hitting $0.00001858 before rebounding slightly to $0.00001866.
This downturn followed an impressive 5.91% rally on January 31, indicating volatile price action. The decline mirrored Bitcoin’s trajectory, which dropped 4.20% due to global market concerns.
Bitcoin’s Slump Triggers Market-Wide Impact
Bitcoin fell sharply after the U.S. administration confirmed increased trade tariffs on Canada, Mexico, and China, pushing BTC below $106,000 to trade at $101,700. This broader market downturn likely contributed to SHIB’s unexpected price drop, despite the bullish burn activity.
While SHIB burns are a positive long-term strategy for reducing supply and potentially increasing value, short-term price movements remain influenced by macroeconomic factors and overall market sentiment. With ShibTorch V2 now in place, the community will be watching closely to see if continuous burns can eventually drive SHIB’s price higher.
