Shiba Inu community celebrated the completion of the first SHIB burn transaction by the project, which was carried out based on Shibarium usage. This transaction has fueled rumors about the future of SHIB, leading to intriguing discussions about potential large token burns that could take place in the future.
A burn of 8.24 billion SHIB, valued at $75,412, was carried out in this first burn transaction linked to Shibarium. The burn came right after a significant increase in the transaction volume of over 5 million since 1st December. The network experienced a peak of 7.84 million transactions on 3rd December, just before the burn.
First SHIB Burn Supported by Shibarium
The significance of this burn was not only due to its size but also the timing. The team had planned to accumulate 25,000 dollars worth of BONE as the target fee before the first burn supported by Shibarium.
However, the sharp rise in transaction volume allowed the network to meet these conditions faster, indicating an increasing adoption of Shibarium.
The Future Importance of Shibarium
The Shiba Inu team envisions Shibarium as a significant catalyst for future SHIB burns. Potential increases in network transaction volume result in the use of more BONE tokens as gas fees for SRC-20 minting. While transaction fees are currently negligible, they contribute to burning SHIB. Consequently, they support the accumulation of funds, which are then allocated to reduce the circulating supply effectively.
The commitment to burn SHIB tokens using fees linked to Shibarium transactions is also documented in Shibarium’s documentation. 70% of the fees used support the repurchase of SHIB and are then allocated to be burned, effectively reducing the circulating supply.
Potential Impact and Future Speculations
The burn method used by Shibarium highlights a crucial aspect of the project. The team aims to reduce the circulating supply of SHIB and raise the value of the remaining tokens. This approach is supported and verified in the cryptocurrency industry, as many projects have implemented burn mechanisms to increase the value of their tokens.
In the case of SHIB, Shibarium-supported burns can have a significant impact. Experts predict that the network can facilitate the burning of 5 to 20 trillion SHIB tokens per month.
If these predictions come true, a substantial decrease in the circulating supply of Shiba Inu (SHIB) could occur, positively affecting the market value.