Shibarium Update Boosts SHIB Burns

The Shiba Inu (SHIB) community saw a significant rise in token burns after a major Shibarium update.

Shiba Inu (SHIB) experienced a substantial rise in token burns following a major Shibarium update.

According to Shibburn data, SHIB burn rates increased by 150% thanks to a new Shibarium update. The update reduced the bridging time from seven days to approximately 45 minutes. This significant improvement has sparked excitement within the community and led to a significant jump in token burns.

Shibarium Update Boosts SHIB Burns

Shibburn tracker revealed that over 8 million tokens were burned, being removed permanently from circulation and sent to unspendable wallets. This occurred within 24 hours.

One of the key contributors was a wallet address 0xa9d1, which moved 4.91 million SHIB to a dead wallet through two large transactions carried out 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 refers to the process of permanently removing tokens from circulation by sending them to an unspendable address. This effectively reduces the total supply. Burning creates scarcity, which can potentially drive up the token’s price if demand remains steady or increases.

The latest Shiba Inu burn rate jump is also connected to a recent update. Previously, transferring tokens from Shibarium to Ethereum took up to seven days. Now, users can expect the transfer to complete in about 45 minutes, allowing them to manage their assets faster and adapt to market changes more efficiently.

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The initial seven-day waiting period was implemented 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, which results 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,” stated the Shibarium team.

ShibaSwap’s recent launch on Shibarium is also expected to accelerate the token burn rate further. Moreover, the project’s team raised $12 million in April to develop a new Layer-3 blockchain. Prominent investors like Polygon Ventures, Mechanism Capital, and Animoca Brands contributed to this fundraising effort.

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The recent Shibarium update has had a significant impact on the SHIB burn rate, showcasing the community's continuous efforts to increase the token value through supply reduction. Despite this, 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.