- In an aim to reduce the circulating supply of SHIB, the Shiba Inu team has confirmed that Shibarium will begin burning tokens in January 2024.
- The burning function will be fully implemented starting this month after the layer-2 network launch in August of 2023.
In an official blog post, the Shiba Inu development team has confirmed that the Shibarium network will begin burning SHIB tokens this month. This is great news for the SHIB community which has been highly anticipating this development. Shibarium will be able to burn trillions of tokens by sending them to dead wallets and permanently destroying them. Ideally, by reducing the circulating supply, the move will drive demand and influence prices. Past burns have led to price increases but due to the low volume, the changes have remained relatively insignificant.
Launched in August 2023, the Shibarium network has largely been a success based on its posted figures. As CNF reported last month, the network has surpassed over 100 million transactions. From recording around 15,000 transactions per day after its launch, the network has experienced extraordinary growth to record daily transactions of over 7 million at the end of last year.
Shibarium Burn Event a Catalyst for SHIB Rally
The team reveals that 70% of the base fees will be used to permanently remove SHIB tokens from circulation while the other 30% will be used to maintain the network. According to the team, the network will initiate burns once it has collected $25,000 from users in transaction fees. Once this threshold is met, some SHIB will be sent to the dead wallets. The number of SHIB tokens to be burnt remains unclear, with the team promising to reveal further details soon. However, it is clear to the community that the higher the number of tokens taken out of circulation, the more likely it will influence prices positively.
SHIB remains one of the most attractive tokens for investors headed to the next bull run. Ultimately, investors expect the token to reach the $0.01 milestone. This makes it an ideal investment at current prices. At the time of press, SHIB is trading at $0.00001075 after a 4% surge in the last 24 hours. With a total market cap of $6.3 billion, the memecoin is emerging as a fan favorite ahead of its bigger brother Dogecoin (DOGE) which has a market cap of $13.2 billion.
Some analysts foresee Shiba Inu rising to surpass Dogecoin due to its progressive improvements. While Dogecoin (DOGE) still enjoys greater popularity thanks to influential people such as Elon Musk and Mark Cuban taking a liking to it, the Shiba Inu team has shown great dedication in continually improving and developing the Shiba Inu and Shibarium network for the long-term success of SHIB. As history has shown, developers and users are attracted by dynamic networks. As their numbers grow, token investors buy into the project.
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