In a significant milestone for the Shiba Inu cryptocurrency, the project’s team executed its first-ever SHIB burn powered by Shibarium, the coin’s Layer 2 (L2) scaling solution. The burn saw 8.24 billion SHIB tokens incinerated, amounting to $75,412 and marking a substantial increase in Shiba Inu’s burn rate, now standing at an impressive 1548111.1%.
The decision to conduct the Shibarium-powered burn followed a notable surge in the network’s daily transactions. Shibarium, Shiba Inu’s L2 scaling solution, has been processing over 5 million transactions daily since December 1. The surge reached a peak on December 3, with a staggering 7.84 million daily transactions, according to data from Shibariumscan. As of the latest update, the daily transaction count reached 7.86 million, contributing to a total network transaction volume of 43.51 million.
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Shiba Inu’s massive burn
Commenting on this development, Shiba Inu noted that it is now approaching a massive burn, driven by the increased transaction volume on Shibarium. The recent surge in transaction volume led to thousands of BONE tokens being spent on transaction fees as part of the SRC-20 minting process.
π πππππππππ ππππππ Click here β¬οΈ https://t.co/I5yUQoxWYNΒ to explore the surge in transactions, now over 38m, due to SRC-20 minting. Thousands of $BONE spent, moving us closer to a massive $SHIB burn, all while keeping transaction fees low #Shibarium pic.twitter.com/r14wJyH77h
— Shib (@Shibtoken) December 5, 2023
Despite maintaining transaction fees at less than a penny, the Shiba Inu team managed to burn over $75,000 worth of SHIB via fees collected from Shibarium-related transactions. The original Shibarium document outlined that 70% of Shibarium fees would be utilized to buy back and burn SHIB. However, the Shibarium-powered SHIB burn was originally slated to occur after the network had accumulated $25,000 worth of BONE in transaction fees.
Shibarium transaction volume
The unexpected spike in Shibarium transaction volume prompted the team to execute the first Shibarium-powered SHIB burn ahead of schedule. Industry experts now speculate that, given the surge in daily transaction volume, the team could burn between 5 trillion and 20 trillion SHIB tokens monthly.
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As of the latest data, a total of 410,671,682,564,412 (410.67 trillion) SHIB tokens have been incinerated from Shiba Inu’s circulating supply. However, it’s important to note that the daily burn rate was down by 99.99% in the hour leading up to the current press time.
The successful implementation of the Shibarium-powered burn and the growing transaction volume on the network have ignited optimism among Shiba Inu investors, with anticipation building for the potential of substantial monthly SHIB burns shortly. Investors and analysts are closely monitoring Shibarium’s performance and Shiba Inu’s burn mechanisms for further insights into the project’s trajectory.
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