Shiba Inu (SHIB) enthusiasts are on the rise today as ShibaSwap, the decentralized exchange (DEX) associated with the SHIB cryptocurrency, announced that it has expanded to the Shibarium blockchain, an Ethereum layer 2 solution developed by the SHIB token team.
SHIB Becomes More Scarce as Shibarium Blockchain Expands
The developers behind this move emphasized that increased use of the Shibarium blockchain for transactions will result in a faster burn rate for the SHIB token, ultimately reducing its circulating supply.
As a result of this announcement, the SHIB price has increased by 8.8% over the last 24 hours, aligning with a broader market rally.
With ShibaSwap, launched on Shibarium, users create new liquidity pools (LPs), allowing investors to swap tokens on the network and receive a share of transaction fees by providing liquidity.
According to the latest data, ShibaSwap has over $25 million in tokens locked as of today, 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,” said the developers, underlining the importance of increased activity on the blockchain.
Burning, a term that 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 therefore affecting market dynamics.
At the time of writing this article, SHIB token was traded at $0.0000256.
*This is not investment advice.