The Shiba Inu (SHIB) burn rate has skyrocketed by an astonishing 2,085%, according to a recent tweet from Shibburn. Over the past week, 1.13 billion SHIB tokens have been permanently removed from circulation, significantly reducing the overall supply.
HOURLY SHIB UPDATE$SHIB Price: $0.00001909 (1hr 0.01% ▲ | 24hr 1.52% ▲ )
Market Cap: $11,241,166,223 (1.49% ▲)
Total Supply: 589,255,699,526,690TOKENS BURNT
Past 24Hrs: 3,273,853 (-99.7% ▼)
Past 7 Days: 1,138,148,465 (2085.71% ▲)— Shibburn (@shibburn) February 1, 2025
This massive burn was largely driven by a single transaction, in which the SHIB team incinerated 1 billion tokens. SHIB’s lead developer, Kaal Dhairya, announced this move on X (formerly Twitter), aligning it with the launch of ShibTorch V2—an upgraded burning system designed for greater efficiency and community involvement.
ShibTorch V2: A Game-Changer for SHIB Burns
The latest burn was part of a broader update to Shibarium’s transaction fee system. A portion of BONE tokens, used as gas fees on the Shibarium network, was converted to SHIB and burned.
With ShibTorch V2, this BONE-to-SHIB conversion process has been automated, ensuring a faster and more consistent burn mechanism. Additionally, other blockchain applications beyond Shibarium can now participate in SHIB burns, potentially increasing the burn rate further in the coming months.
SHIB Price Reacts Unexpectedly
Despite this significant burn event, SHIB’s price dropped by over 4% in the past 24 hours. After peaking at $0.00001968, the token fell to $0.00001858, before seeing a slight recovery to $0.00001866.
This decline comes right after SHIB posted an impressive 5.91% rally on January 31. However, its downturn mirrored that of Bitcoin (BTC), which also took a hit due to external economic factors.
Bitcoin’s Fall Influences SHIB
Bitcoin, the leading cryptocurrency, dropped 4.20%, falling below the $106,000 mark and currently trading at $101,700. This decline followed the announcement by the U.S. administration confirming higher trade tariffs on Canada, Mexico, and China. As a result, the stock market tumbled, dragging BTC and the broader crypto market—including SHIB—down with it.
What’s Next for SHIB?
The long-term impact of ShibTorch V2 remains to be seen, but a faster and more efficient burn mechanism could help SHIB’s supply shrink over time. However, macro-economic factors and Bitcoin’s performance will likely continue to influence its short-term price movements.
Despite the recent dip, SHIB’s growing burn rate and ongoing development efforts suggest that the meme coin still holds strong potential for long-term investors.
