The Importance of SHIB Token Burning for the Shiba Inu Community
The Shiba Inu community recognizes the significance of burning SHIB tokens as a means to reduce the token supply. Community members send tokens to a designated ‘burn’ address on a weekly basis. This burning process has now extended to the Shibarium Layer 2 network, which is a positive development for the community.
Lead Developer Announces Shiba Inu Burn Portal
In an eagerly awaited announcement, Shiba Inu’s lead marketer, LUCIE, shared on X that a burn portal for Shibarium was under development. This follows repeated calls for an automatic burn mechanism as the Shibarium blockchain expands. However, the developer emphasized that burns alone are not the ultimate solution. Instead, the focus should be on blockchain adoption.
The developer’s viewpoint aligns with a previous statement made by LUCIE. SHIB tokens will only be burned when the blockchain is actively used, as token burns are dependent on transaction fees. Therefore, the emphasis should be on promoting adoption of Shibarium rather than solely relying on burns.
Will a Shibarium Burn Portal Lead to a New All-Time High?
The community’s emphasis on a burn mechanism stems from the belief that reducing token supply leads to higher prices. While this is true in the digital asset space, other factors contribute to a token reaching new all-time high prices.
It is important to consider the current crypto market trend, which is currently experiencing a bear market. Therefore, even if a Shiba Inu burn portal were introduced today, it would not guarantee an immediate new all-time high. However, it could lead to a temporary surge in price. Therefore, focusing on adoption rather than just burns adds long-lasting value to SHIB tokens.
Currently, SHIB is trading at $0.000007549, with a 2.40% decrease in the last day and a 6.91% decrease in the last week. It holds the 16th position in terms of market capitalization, with a value of $4.44 billion.
Hot Take:
The introduction of a burn portal for Shibarium is a positive step for the Shiba Inu community. However, focusing solely on token burns may not guarantee a new all-time high for SHIB. Instead, directing efforts towards blockchain adoption will provide more sustainable value in the long run.
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