The Shiba Inu (SHIB) community saw a significant rise in token burns after a major Shibarium update.
Shibburn data shows that SHIB burn rates increased by 150% due to a new Shibarium update that reduced bridging time from seven days to about 45 minutes. This substantial improvement has excited the community and sparked a significant jump in token burns.
Shibarium’s Update Boosts SHIB Burns
According to the Shibburn tracker, over 8 million tokens were removed from circulation and sent to unspendable wallets within 24 hours. One of the key contributors was the wallet address 0xa9d1, which moved 4.91 million SHIB to a dead wallet through two significant transactions conducted a few hours apart. Initially, the holder burned 2 million SHIB coins. Later, the owner transferred another 2.91 million tokens to the dead wallet.
Burning is the process of permanently removing tokens from circulation. It can be done by sending them to an unspendable address, effectively reducing the total supply. Burning creates scarcity, potentially driving up the token’s price if demand remains steady or increases.
The latest Shiba Inu burn rate jump is associated with the recent update. Previously, transferring tokens from Shibarium to Ethereum took up to seven days. The upgrade reduced this time to about 45 minutes, allowing users to manage assets faster and adapt to market changes more efficiently.
Read more: Shiba Inu — A Beginner’s Guide
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 team also noted that the new system utilizes a checkpoint mechanism for token withdrawals, resulting in faster processing of exit transactions.
“This reduction in bridge time is a game-changer — develop and deploy time-sensitive applications faster than ever before,” the Shibarium team stated.
ShibaSwap’s recent launch on Shibarium is also expected to accelerate the token burn rate further. Additionally, the project’s team raised $12 million in April to develop a new Layer-3 blockchain. This fundraising effort attracted contributions from prominent investors such as Polygon Ventures, Mechanism Capital, and Animoca Brands.
Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
The recent Shibarium update has significantly accelerated the SHIB burn rate, demonstrating the community’s ongoing efforts to increase the token value through supply reduction. Despite that, the immediate price impact on SHIB has been minimal. According to BeInCrypto, it currently trades at $0,00002583, losing 1,46% in the last 24 hours.
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