Shiba Inu Shibarium Burn and Its Impact

The Shibarium burn is a significant event in the Shiba Inu ecosystem, where a large amount of SHIB tokens are being destroyed to reduce the overall supply.

Shibarium is a layer-2 scaling solution for the Shiba Inu network, designed to increase transaction speed and reduce fees. This burn event is a key part of the Shibarium launch plan.

The burn event is expected to have a positive impact on the Shiba Inu price, as the reduced supply will increase the token's scarcity and value.

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Shibarium is a Layer-2 network to the Ethereum network, designed to make more use of the three tokens of the Shiba Inu ecosystem.

It connects SHIB, BONE, and LEASH into a more closely-knit system, promising better scalability and utility for metaverse, gaming, Web3, NFTs, and DeFi projects.

Shibarium aims to improve the functionality of these projects, making them more efficient and user-friendly.

ShibaSwap is one of the first dApps on Shibarium, turning BONE into the native token of the network.

SHIB plays a significant role in this ecosystem, contributing to SHIB burns.

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Shibarium's low transaction fees are a deliberate design choice, keeping the entry barrier low to encourage higher network activity.

The network's base fees are split, with 70% going towards buying back and burning SHIB, a mechanism meant to reduce the token's supply.

This approach aims to make up for the relatively small individual burn fees by increasing the overall number of transactions on the network.

Shibarium's gas fees are paid in BONE, but transactions on this network incur an implicit burn on SHIB, funded by 70% of all base fees.

The burn tracker, however, is not implemented as of 2023, which raises questions about the effectiveness of this approach.

Transaction fees on Shibarium are intentionally kept low, with the goal of keeping the entry barrier low and making up for the minuscule individual burn fees with higher network activity.

This approach is a deliberate choice to prioritize network activity over high commissions.

Reducing the circulating supply of SHIB is supposed to increase its value, but community members argue that it's not that simple.

Even with massive burns, the price of SHIB doesn't necessarily move because its liquidity, demand, and perceived value remain relatively unchanged.

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Shibarium's L2 Testnet is a game-changer, leveraging the Sepolia Network to enhance scalability and reduce transaction costs.

This move is not just a transition but an upgrade, focusing on creating a more efficient and user-friendly environment for the burgeoning demands of the blockchain community.

By utilizing the Sepolia Network, Shibarium's L2 Testnet aims to improve transaction speeds, catering to the needs of areas like DeFi and NFTs.

Shibarium's focus on scalability, reduced transaction costs, and improved transaction speeds will undoubtedly benefit users, making it a more attractive option for the blockchain community.

Transaction volume and gas fees play a crucial role in the burn mechanism's success. The more transactions and higher gas fees on Shibarium, the more SHIB tokens are burned.

A significant rise in gas fees, as much as 1000%, on Shibarium can lead to exponential growth in token burning. This is a key correlation that contributes to the network's self-sustaining cycle of growth and value appreciation.

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The developers intentionally kept transaction fees on Shibarium low to encourage network activity, making up for the minuscule individual burn fees with higher network activity. This approach aims to increase the number of transactions and adoption rate.

As Shibarium experiences an increase in transactions, the token burning also grows exponentially. This creates a positive feedback loop that contributes to the network's growth and value appreciation.

The transactions on Shibarium incur an implicit burn on SHIB, according to official sources.

This burn is implemented as a buyback and burn funded by 70% of all the Shibarium network base fees.

70% might sound like a lot, but keep in mind that transaction fees on Shibarium are intentionally kept low.

The developers opted to keep the entry barrier low and make up for the minuscule individual burn fees with higher network activity.

However, the burn tracker does not seem to be implemented as of 2023.

Reducing the circulating supply of SHIB is not enough to increase its value, as there is also demand in the equation.

The price of SHIB does not move much even with massive burns, because SHIB's liquidity, demand, and perceived value do not change much.

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The current circulating supply of Shiba Inu is 589.2 trillion tokens.

Shiba Inu's market price has dipped a marginal 0.5% over the previous day, rendering the cost at a moderate $0.00002325.

This decrease points to a wider dip, with SHIB witnessing a near 6% fall over the previous week.

To reach the coveted $0.01 target, Shiba Inu will have to burn 94.4% of its current supply, shrinking it to 0.04% of the total supply.

The burn rate of Shiba Inu has skyrocketed by over 68,000% within the span of just 24 hours, with seven wallet addresses jointly leading to the burning of 7.6 million SHIB tokens.

One wallet, known simply as ‘0x60’, single-handedly led to the burn of a staggering 4.3 million SHIB tokens, while another wallet, identified as ‘0xc6’, eliminated 1.5 million SHIB tokens from circulation.

The total number of Shiba Inu taken out of circulation now stands at a grand 410.7 trillion tokens.

Discover more: Shiba Inu Burn Wallet