- Shiba Inu (SHIB) reaches a six-month high but quickly retraces the gains.
- The second on-chain Shibarium incineration burns $87,000 worth of SHIB.
- Shibarium lead dev Shytoshi Kusama reveals the key to impactful burns.
The developers behind Shibarium Layer-2 conducted the second on-chain burn, which resulted in a whopping 8,615,169,427 SHIB tokens set ablaze in a single transaction. Carried out on December 16, 2023, the Shibarium Burn transaction encompasses trading fees collected with $BONE, the official gas fee token of Shibarium L2.
The huge transaction equaled $87K at stamped transaction time and instantaneously catapulted Shiba Inu to a new half-year high of $0.00001165 in the early hours of Saturday, December 17, 2023. However, the bullish breakout was erased on Monday, as SHIB retraced back to $0.00000960 support levels.
Successfully retesting this barrier, SHIB dropped the zero once again to trade at $0.00001002 at the time of publication. This price roller coaster for Shiba Inu touches upon a sensitive multi-trillion token resistance barricade at $0.00001, pouring pressure into the markets as many investors decide to take profits at this price range.
Kusama Unfolds Key to Impactful Burns
The Shiba Inu community, popularly known as SHIB Army, had requested assistance from the developers to assemble a consistent SHIB burning system. A month ago, Shibarium dev Kaal Dhairya introduced the dual Shibarium burning mechanism, which now encompasses 18.8 billion tokens taken out of circulation.
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While a lot of accumulated fees in BONE to perform the two whopping cumulative burns were linked to ‘Puppynet’s’ switch to Sepolia Network from Goerli, global adoption is another driving factor for increased burns. Shibarium’s lead developer, Shytoshi Kusama, pointed out that these “prepared for roasting” transactions are “worth of toasting,” but the breakthrough will happen along with global adoption by influential figures.
The growing adoption rates are evident in the 136 million transactions on Shibarium, recently adopted by the boxing champion Manny Pacquaio’s charity. Finally, the lead developer alluded to next week’s major announcement, likely related to another gigantic on-chain burn on Shibarium, Shiba Inu’s own Layer-2 blockchain.
On the Flipside
- Some SHIB Army members argue that the burning happened at the wrong time due to Bitcoin’s drop in market value, as SHIB has a 0.87 price correlation with Bitcoin (BTC).
Why This Matters
Cryptocurrency burning maintains a coin’s scarcity and alters circulation dynamics.
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