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SHIB to Get More Scarce as Key Exchange Expands to Shibarium

May 15, 2024
    ShibaSwap expanded to the Shibarium blockchain, allowing users to create new liquidity pools and earn fees from providing liquidity.Increased transactions on the Shibarium blockchain will lead to a higher burn rate for the SHIB token, reducing its circulating supply.
As a seasoned crypto investor with a deep understanding of the SHIB token and its associated ecosystem, I’m thrilled to hear about ShibaSwap expanding to the Shibarium blockchain. This development opens up new opportunities for users to create liquidity pools and earn fees, driving more transactions on the network.The ShibaSwap decentralized exchange (DEX), linked to the Shiba Inu (SHIB) cryptocurrency, announced on Thursday that it has gone live on the Shibarium blockchain, a layer 2 solution on Ethereum developed by the SHIB team.
As a researcher studying the cryptocurrency market, I’ve come across an intriguing development regarding Shibarium and the SHIB token. The developers have announced that the heightened adoption of Shibarium for transactions will inevitably lead to a faster burn rate for SHIB tokens, subsequently decreasing the token supply in circulation. Simultaneously, the broader market has experienced a surge, with the SHIB price soaring by 8.8% over the past 24 hours, and the CoinDesk 20 Index (CD20) rallying almost 7%.

As a crypto investor, I’m excited to share that I can now create new liquidity pools (LPs) on Shibarium myself. This means traders can swap tokens seamlessly on this network, and I get to earn a portion of the trading fees by providing liquidity. The data reveals that over $25 million worth of tokens are currently locked in ShibaSwap, with approximately $1.7 million in trading volumes recorded within the last 24 hours.

“As the number of transactions processed on the Shibarium blockchain increases, so does the amount of base gas fees the protocol must handle. This, in turn, impacts the total gas fee burn rate for SHIB.”

As a crypto investor, I would describe this process as permanently taking tokens out of circulation by transferring them to an unreachable address that isn’t under anyone’s control. This action effectively reduces the total amount of tokens available in the market.

As a analyst, I would explain it this way: Each trade and stake transaction on ShibaSwap plays a crucial role in boosting our ecosystem. The surge in trading volumes results in greater fees for stakers and liquidity providers, creating a win-win situation. This dynamic not only fosters growth but also ensures the long-term sustainability of our platform.

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2024-05-16 10:40