The Shiba Inu (SHIB) community is celebrating a major win after a recent Shibarium update significantly boosted the token burn rate. Data from Shibburn, a dedicated tracking platform, reveals a 150% increase in burned SHIB tokens, directly linked to the update’s improved bridging times.
Faster Bridging, Faster Burning
Previously, transferring SHIB tokens between Shibarium and the Ethereum network took a hefty seven days. This extended waiting period, while initially intended to promote price stability, became a hurdle for users seeking faster transaction times. The new Shibarium update cuts that waiting period down to a mere 45 minutes, significantly improving user experience and flexibility.
This newfound agility has sparked a surge in token burning activity. According to Shibburn, over 8 million SHIB tokens were removed from circulation within 24 hours of the update. Notably, a single wallet address, 0xa9d1, played a major role, contributing a staggering 4.91 million burned SHIB through two separate transactions.
Burning tokens essentially removes them from circulation, permanently reducing the total supply. This strategy aims to create scarcity, potentially driving up the price of the remaining tokens – assuming demand stays the same or increases. The recent SHIB burn spree signifies the community’s dedication to increasing the token’s value through supply reduction.
ShibaSwap and Layer-3 on the Horizon
Further boosting the burn rate is the anticipated launch of ShibaSwap on Shibarium. This decentralized exchange could incentivize more token burning activities within the Shiba Inu ecosystem. Additionally, the project’s recent $12 million fundraising effort, backed by prominent investors, fuels development of a new Layer-3 blockchain. These advancements suggest a long-term commitment to the Shiba Inu project’s growth and sustainability.
Price Impact Yet to Be Seen
While the Shibarium update has demonstrably accelerated the SHIB burn rate, its immediate impact on the token’s price remains to be seen. The cryptocurrency market is complex, and several factors can influence price movements.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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