As a researcher with a background in blockchain technology and cryptocurrencies, I find the ongoing discussion around methods to reduce Shiba Inu’s (SHIB) circulating supply through transactions on Shibarium particularly intriguing. The potential impact of such actions on the token’s price dynamics is an essential aspect to explore.
One SHIB supporter responded to a query on an X forum about how users engage with Shiba Inu‘s scaling solution, Shibarium, by outlining several methods for reducing the current circulating supply of the canine-themed meme token, SHIB.
Performing Transactions to Facilitate Shiba Inu Supply Crunch
@dhelzkiie7, an advocate for SHIB and recognized figure on X, proposed token swapping as the initial method for reducing the supply. Token swapping entails exchanging one type of token for another within designated Decentralized Exchanges (DEXs) in the ecosystem. These swaps can be integral to a migration process transferring assets to a new blockchain or adopting an upgraded token standard.
In this scenario, the existing tokens are exchanged for fresh ones, after which the previous tokens lose their value or become obsolete. This process is commonly employed when projects undergo technological upgrades or transitions to more efficient or secure blockchains. Furthermore, token swaps play a crucial role in Decentralized Finance (DeFi) by enabling liquidity contributions.
When tokens are exchanged into liquidity pools, they get locked in for a specific duration, thus decreasing the amount of these tokens that are actively circulating in the market.
Another approach He proposed involves creating Non-fungible tokens (NFTs) as an additional method for shrinking SHIB‘s circulating supply. NFTs can be bought, sold, or traded, and these transactions necessitate SHIB due to their origination on the SHIB platform. Fees associated with these transactions may be burned or contribute to a token burn mechanism, thereby gradually decreasing the total quantity of SHIB in circulation over time.
One way to put it: Staking NFTs or transferring them between wallets are two effective ways to decrease the SHIB supply. When tokens or NFTs are set aside for staking, they become unavailable in circulation for a while, leading to a reduction in the total amount circulating. Another method suggested by a SHIB supporter is claiming rewards from staking and utilizing re-rolls DN404.
The rationale behind these procedures is that users engage in transactions on Shibarium, which in turn cause the dog-themed memecoin to be destroyed and decrease its overall circulation. It’s commonly held that the oversupply of this memecoin in the market is a significant factor contributing to its lackluster performance.
SHIB Burn Rate Impacts on Price
As a crypto investor following Shibburn’s updates closely, I’m thrilled to share that the Shiba Inu token experienced an extraordinary 4000% increase in burns on May 6th.
Approximately 81.64 million SHIB were eliminated from circulation in the last 24 hours, fueling anticipation regarding potential price developments and market shifts for this token. The principles of economics suggest that as supply decreases while demand remains robust, the value of the token may increase over a prolonged period.
The rising cost of maintaining Shiba Inu is adding to other factors, influencing the coin’s current value. At this moment, Shiba Inu has risen by 2.62% and is being bought and sold at $0.00002549. The SHIB token had earlier lost a significant support point at $0.00003, but it seems to be making progress toward reclaiming that level.
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2024-05-06 13:24