The official marketing manager of the Shiba Inu team, known as Lucie on social media, has disclosed figures related to the fourth SHIB token burn event. Continuing their practice of removing a significant amount of SHIB from circulation, the team has burned tokens in an effort to reduce supply and potentially increase value.
Lucie announced that this month, 8.47 billion SHIB tokens, valued at approximately $90,857, were transferred to an inaccessible wallet address, effectively removing them from circulation. This burn is part of a series of transfers aiming to decrease the available supply of SHIB tokens.
According to data from Shibburn, a platform tracking SHIB token burns, a total of 25.72 billion SHIB tokens have been burned since December, with the burn rate surging by an astonishing 13,983% last week. The Shiba Inu team has burned approximately 33.6 billion SHIB tokens worth around $363,600 in their last four burn events.
Token burns are a strategy where a portion of a cryptocurrency‘s circulating supply is sent to unusable wallet addresses, effectively reducing the supply. The Shiba Inu team’s burns have been facilitated using funds earned from transaction fees on the Layer 2 network Shibarium. These fees are collected in BONE tokens, with a portion retained and the rest converted to SHIB and burned.
Over the past weekend, Shiba Inu’s anonymous developer Shytoshi Kusama emphasized the need for Shiba Inu and Shibarium to move beyond memes to achieve global adoption and usage, which would lead to more transaction fees and consequently, increased SHIB burns. Kusama highlighted that the more investors, developers, and users that engage with the Shibarium network, the more transaction fees will be generated, fueling further burns.
The Shibarium network has seen a doubling in transaction volume over the past two weeks. Daily transactions have skyrocketed from 60 million to 150 million, with current data indicating that the total number of transactions on the Shibarium network is at 169.57 million and is expected to soon reach a new milestone of 170 million.
