ShibaSwap, the decentralized exchange (DEX) affiliated with the Shiba Inu (SHIB) cryptocurrency, announced its launch on Thursday on the Shibarium blockchain, an Ethereum layer 2 solution developed by the SHIB token team.
The developers noted that the growing adoption of the Shibarium blockchain for transactions would lead to a higher burn rate for the SHIB token, ultimately reducing its circulating supply. Over the past 24 hours, the price of SHIB has surged by 8.8%, aligning with a broader market uptrend.
Shibarium now enables users to create new liquidity pools (LPs), allowing traders to swap tokens within the network and earn a portion of trading fees by providing liquidity. Data indicates that ShibaSwap has locked over $25 million worth of tokens as of Thursday, with $1.7 million in trading volumes recorded within the past 24 hours.
According to the developers, the increased usage of the Shibarium blockchain will lead to a higher burn rate of SHIB tokens through the protocol's base gas fees. Burns involve permanently removing tokens from circulation by transferring them to an address that is not under anyone's control.
The developers emphasized that every swap and stake conducted on ShibaSwap contributes to the ecosystem's expansion, as higher trading volumes result in increased fees for stakers and LP providers, as stated in an announcement on X.
May 2024, Cryptoniteuae