- On-chain burns on Shibarium now encompass over 25B SHIB coins.
- The Layer-2 has been sailing in trading activity since early December.
- Shibarium’s total value locked crosses $1 million after a 3-month hiatus.
The developer team behind Shibarium carried out their promise to conduct three massive Shiba Inu (SHIB) burns on SHIB’s native Shibarium L2 blockchain. The latest crypto incineration of 8,533,564,693 SHIB tokens is equivalent to $89,090 and is expected to maintain the scarcity of the popular canine coin.
Following the news, SHIB picked up 1.5% gains, while BONE, the official gas fee token of Shibarium L2, stayed at the status quo, trading at $0.75 at publication. These on-chain burns are performed after the accumulated fees in BONE are swapped to SHIB and taken out of circulation.
Millions of Daily Transfers Hit Red Hot Shibarium
The triple Shiba Inu burning procedure is closely tied to the trading activity on Shibarium. The Layer-2 scaling solution reached its zenith at the beginning of the month, counting up five million daily transactions since December 1, 2023.
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Despite the heavy load on the network, Shibarium continued to operate at a steady rate of five seconds’ average block production time. The 161 million transactions heavily contributed towards gathering record amounts of blazed SHIB coins.
However, the exponential growth of the Shibarium Ecosystem and community interest is also evident in Shibarium’s total value locked (TVL). The Layer-2’s renaissance after months of quiet activity is now highlighted with a $1.12 million TVL, restoring the liquidity levels unseen since September 3, 2023, while Shibburn reported a 161,540% rise in SHIB burns.
On the Flipside
- Besides the officially conducted SHIB on-chain burns by Shibarium developers, other dApps on Shibarium have also created initiatives for burning SHIB.
- To illustrate, Shibarium’s leading decentralized exchange, MARSWAP, has programmed in a condition to automatically burn 2% of the transactions on the DEX.
Why This Matters
Shiba Inu’s on-chain burns have previously been effective on SHIB’s short-term price. The developers and the community are eager to see if more stable burns of a bigger magnitude could have a positive impact on the canine coin’s long-term value.
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