Shiba Inu (SHIB) enthusiasts are experiencing a surge in excitement as ShibaSwap, the decentralized exchange (DEX) associated with the SHIB cryptocurrency, has announced its expansion to the Shibarium blockchain. Shibarium is an Ethereum layer 2 solution developed by the SHIB token team.
The developers behind this move have stressed the significance of increased utilization of the Shibarium blockchain for transactions, as it will result in a faster burn rate for the SHIB token. This, in turn, will decrease its circulating supply, making it more scarce.
Following this announcement, the price of SHIB has seen an 8.8% increase in the last 24 hours, aligning with a broader market rally.
ShibaSwap, which was launched on Shibarium, allows users to create new liquidity pools (LPs), enabling investors to swap tokens on the network and receive a share of transaction fees by providing liquidity.
According to the latest data, ShibaSwap currently has over $25 million in tokens locked, with a total transaction volume of $1.7 million in the last 24 hours.
“The more transactions occur on the Shibarium blockchain, the more base gas fees the protocol will burn, which will affect the overall burn rate of SHIB,” stated the developers, emphasizing the importance of increased activity on the blockchain.
Burning, which refers to the permanent removal of tokens from the circulating supply by sending them to an uncontrolled address, plays a crucial role in regulating token scarcity and influencing market dynamics.
As of the time of writing, the SHIB token is being traded at $0.0000256.
*Please note that this article does not provide investment advice.
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