- The burning of SRC-20 tokens can influence their market value, positioning them as potential deflationary assets.
- Similar development to BRC-20 tokens in Bitcoin, gaining relevance with market valuation above $3.5 billion.
In the memecoin sector, a recent development is gaining attention: the SRC-20 tokens on Shiba Inu’s Shibarium network now have the ability to be burned. This update, announced by WoofSwap, a platform linked to Shiba Inu, is an important step for users of the network.
Token burning is a process in which tokens are sent to an inactive address, effectively reducing their circulating supply. This strategy can positively impact the value of remaining tokens by creating greater scarcity. WoofSwap’s announcement specifies that this functionality is now available for SRC-20 tokens on Shibarium.
src-20 now supports burning.
Transfer to the burning address:
0x000000000000000000000000000000000000dEaD
— WOOF | src-20 on Shibarium (@woofswap) December 26, 2023
SRC-20 tokens are a fundamental part of the Shibarium network, allowing users to create varied inscriptions such as images, text or HTML. Currently, there are more than 50 SRC-20 tokens on Shibarium, each with its own market value. For example, the “shibs” token on Shibarium has a market capitalization of approximately $4 million and more than 22,000 holders.
Other SRC-20 tokens on Shibarium, such as ‘bones’, ‘woof’, ‘SPUK’, ‘punk’ and ‘Pepe’, are also present in the market with their own valuations. The burning capability now offers holders of these tokens a tool to influence their market value and position themselves as deflationary assets.
This update comes against a backdrop where early adopters of tokens in emerging networks, as was the case with Shiba Inu in 2020, have seen significant returns. SRC-20 tokens in Shibarium could offer similar opportunities, according to some market analysts.
It is important to note that this trend is not unique to Shibarium
On the Bitcoin blockchain, BRC-20 tokens have gained prominence this year, reaching a market valuation in excess of $3.5 billion. Some of these tokens have even managed to be listed on reputable trading platforms.
The ability to burn SRC-20 tokens represents a major breakthrough for the Shibarium network and the Shiba Inu community. Not only does it introduce a new dynamic to the token market, but it also underscores the continued evolution and adaptation of blockchain networks to meet the needs of their users.
The token SRC-20 tokens on Shibarium not only offers a new market strategy for investors but also opens up a range of possibilities for the future of these tokens and, by extension, the entire Shiba Inu blockchain.
Will these tokens be the next players on the crypto scene? Only time will tell, but one thing is for sure: the Shiba Inu community is ready to make its mark in the world of digital finance.
