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Since Shibarium’s mainnet launch in August 2023, many Shiba Inu community members have questioned its direct impact on SHIB. Despite being designed to enhance ecosystem growth, reduce transaction fees, and improve scalability, some users believe these features have yet to produce visible benefits for SHIB. Marketing expert Lucie recently addressed these concerns in an X post, emphasizing the contribution of Shibarium to SHIB’s burn process. According to Lucie, the Layer-2 blockchain has burned over $1.5 million worth of SHIB tokens. This burn initiative reduces SHIB’s circulating supply, creating potential scarcity that could increase the token’s value.
Fee Structure and Token Burns
Shibarium’s fee system plays a crucial role in SHIB’s burn mechanism. The fees consist of priority and base fees. While validators on the network receive the priority fees, 70% of the base fees—originally paid in BONE—are converted into SHIB and sent to a dead wallet. Before launching the burn portal, the team manually incinerated 56 billion SHIB tokens. Since the portal’s introduction, over 300 million tokens have been permanently removed from circulation.
Related article: Shibarium Unlocks New Milestones with Bitget Wallet Integration
Shibarium’s low-cost transactions make SHIB more accessible for everyday use. This accessibility could increase adoption and drive further activity within the Shiba Inu ecosystem. Lucie also highlighted that Shibarium supports the development of future utilities like staking and decentralized governance, solidifying SHIB’s role in the broader crypto space.
Market Recognition and Growing Usage
Lucie pointed out that Shibarium’s influence has boosted SHIB’s reputation, with Forbes recognizing Shiba Inu’s growth as evidence of this impact. Additionally, Shibarium’s user activity remains robust, with daily transaction volumes consistently surpassing 4 million. To date, the platform has processed 673.35 million transactions, with a daily volume of 4.72 million.
Related article: Shiba Inu Sees Drop in Trading Volume: What’s Next for SHIB?
Data from Shibburn reveals that 410.74 trillion SHIB tokens have been permanently removed from circulation. Over the past day, 6.08 million tokens were burned, reflecting ongoing efforts to reduce the supply. Shibarium’s network metrics show 2.01 million wallet addresses, 8.47 million total blocks, and a fast average block time of 5.0 seconds.
Shibarium’s role in SHIB’s ecosystem continues to evolve. Through token burns, low-cost transactions, and support for future utilities, it strengthens SHIB’s position in the crypto market. Community activity, transaction volume, and network engagement indicate sustained growth, suggesting that Shibarium’s impact on SHIB will become even more evident over time.
The post Shibarium Drives SHIB Scarcity: Token Burns and Network Growth appeared first on FXcrypto News.
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