The Shiba Inu (SHIB) community witnessed a dramatic surge in token burns over the past week, with an impressive 2,085% increase. However, despite the reduced supply, SHIB’s price took an unexpected hit, mirroring Bitcoin’s market movement.

SHIB Burns Soar Over 2,000%

According to data from Shibburn, more than 1.13 billion SHIB tokens were removed from circulation in the past seven days. The majority of this burn—1 billion SHIB—was executed in a single transaction by a SHIB team member, as confirmed by developer Kaal Dhairya on X (formerly Twitter).

HOURLY SHIB UPDATE$SHIB Price: $0.00001909 (1hr 0.01% ▲ | 24hr 1.52% ▲ )
Market Cap: $11,241,166,223 (1.49% ▲)
Total Supply: 589,255,699,526,690

TOKENS BURNT
Past 24Hrs: 3,273,853 (-99.7% ▼)
Past 7 Days: 1,138,148,465 (2085.71% ▲)

— Shibburn (@shibburn) February 1, 2025

This significant burn coincided with the launch of ShibTorch V2, an enhanced burn mechanism designed to improve efficiency, accessibility, and community participation. The update also automates the conversion of BONE tokens into SHIB for burning, further streamlining the process.

Shibarium’s Role in the Burn

The latest burn was tied to Shibarium, SHIB’s Layer-2 scaling solution. The ShibTorch V2 upgrade ensures that a portion of transaction fees converted from BONE to SHIB are regularly burned. Additionally, other entities, beyond Shibarium itself, can now participate in these burns, potentially increasing future burn rates.

SHIB Price Falls Despite Burn Surge

Despite the massive burn, SHIB’s price failed to react positively. Instead, it dropped by over 4%, falling from $0.00001968 to $0.00001858 before slightly recovering. This decline followed an earlier 5.91% rally on January 31.

The drop was largely influenced by Bitcoin’s downward trajectory. BTC fell 4.20%, slipping below $106,000 to trade at $101,700, following the U.S. administration’s announcement of higher trade tariffs for Canada, Mexico, and China. As Bitcoin remains the market’s dominant force, its movements often impact meme coins like SHIB.

What’s Next for SHIB?

While SHIB burns continue to gain momentum, their immediate impact on price remains uncertain. However, with ShibTorch V2 streamlining burn processes, future burns could further reduce supply, potentially benefiting SHIB’s long-term value.

For now, SHIB traders will likely keep an eye on Bitcoin’s movements, as the broader crypto market remains highly correlated with its price action.