Shiba Inu Burns 1 Billion Tokens 85% Price Surge

The Shiba Inu protocol recently burned over 1 billion tokens in just seven days, marking a significant 1,677% surge in burn activity. This substantial reduction in token supply coincided with an 85% increase in the price of SHIB, drawing considerable attention from analysts and market participants. The burn activity, which totaled 1,052,390,461 tokens, occurred between July 3 and July 10, 2025, and was led by the Shiba Inu community as part of an initiative to reduce the overall token supply.

On July 11, the price of SHIB traded at $0.00001372, reflecting a 10.39% daily increase. However, the price saw a slight decline the following day, trading at $0.00001311. Despite this minor setback, the market capitalization of SHIB remained robust, although it experienced a slight decrease from $8.08 billion to $7.71 billion. In the 24-hour window following the burn, activity dropped by 75.06%, with only 4.6 million tokens removed from circulation.

Analyst Jonathan Carter highlighted a descending channel forming on SHIB’s daily chart, noting that the token held above the midline support and neared the 50-day moving average. According to Carter, a breakout above this line could push SHIB to targets of $0.00001500, $0.00001750, $0.00002050, and $0.00002500. These levels could serve as resistance zones in case of a sustained upward movement.

In addition to the burn activity, the Shiba Inu community has shifted its focus from speculative trading to ecosystem development. Lucie, a prominent voice in the SHIB community, commented on this change, stating that infrastructure-building had taken priority in recent weeks. The Shibarium layer-2 blockchain became operational with new feature additions, introducing real utility and supporting more decentralized applications. BONE remains the main token used across the network, while LEASH and TREAT started getting clearer roles too. These changes point to a push for real use, not just price hype, and indicate that the project might be heading in a more focused and practical direction.

Technical analyst Javon Marks identified a bullish divergence in SHIB’s price chart, with the MACD indicator diverging from price movement. This pattern often points to potential reversals, and based on this signal, Marks projected up to 180% upside, with a price target near $0.000032. However, the forecast remained speculative, and traders continued to monitor the alignment of burn trends and chart indicators. The unpredictable nature of SHIB’s price was highlighted by a trader who once held about 2.1% of all SHIB tokens, with that stash being worth around $882 million at its highest point. Stories like this serve as a reminder of just how unpredictable SHIB’s price can be, and some traders are watching closely as the burn rate rises and a few technical indicators show minor signs of strength.