SHIB Burn Rate Soars After Major Shibarium Enhancement

SHIB Burn Rate Soars After Major Shibarium Enhancement

The Shiba Inu (SHIB) community has significantly increased token burns following a major Shibarium update. Shibburn data indicates a 150% rise in SHIB burn rates, fueled by a new update that shortened bridging time from seven days to about 45 minutes. This improvement has energized the community, leading to a substantial jump in token burns.

According to Shibburn, over 8 million tokens were removed from circulation and sent to unspendable wallets within 24 hours. A key contributor was the wallet address 0xa9d1, which moved 4.91 million SHIB to a dead wallet through two major transactions conducted hours apart. Initially, this holder burned 2 million SHIB coins and later transferred another 2.91 million tokens to the dead wallet.

SHIB Burn Rate. Source: Shibburn

Understanding The Burning Process

Burning permanently removes tokens from circulation by sending them to an unspendable address, thus reducing the total supply. This process creates scarcity, potentially increasing the token’s price if demand remains steady or rises. The recent jump in SHIB burn rates is closely linked to the Shibarium update. 

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Previously, transferring tokens from Shibarium to Ethereum took up to seven days. The upgrade has reduced this time to about 45 minutes, allowing users to manage assets faster and adapt to market changes more efficiently. The initial seven-day waiting period aimed to promote price stability by encouraging users to stay on Layer-2 longer. However, this is no longer necessary. The new system also uses a checkpoint mechanism for token withdrawals, speeding up exit transaction processing.

Future Prospects

The Shibarium team stated, “This reduction in bridge time is a game-changer — develop and deploy time-sensitive applications faster than ever before.” Additionally, ShibaSwap’s recent launch on Shibarium is expected to further accelerate the token burn rate. The project’s team also raised $12 million in April to develop a new Layer-3 blockchain. This fundraising effort attracted investments from prominent entities such as Polygon Ventures, Mechanism Capital, and Animoca Brands.

Related article: Shiba Inu Whales Accumulate 503.9 Billion SHIB in 1 Day

The recent Shibarium update has significantly boosted the SHIB burn rate, reflecting the community’s ongoing efforts to increase the token value through supply reduction. Despite this, the immediate price impact on SHIB has been minimal. According to BeInCrypto, SHIB currently trades at $0.00002583, losing 1.46% in the last 24 hours.

Overall, the Shibarium update has effectively increased SHIB burn rates and promises further developments that could positively impact the Shiba Inu ecosystem.

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Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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