ShibaSwap, the decentralized exchange linked to the Shiba Inu cryptocurrency, announced on Thursday its launch on the Shibarium blockchain, a layer 2 solution developed by the SHIB token team on Ethereum.
According to the developers, as more transactions occur on the Shibarium blockchain, the rate at which SHIB tokens are burned will increase, thereby reducing the token’s circulating supply. Over the past 24 hours, the price of SHIB has surged by 8.8%, reflecting a broader market trend.
With Shibarium now operational, users have the opportunity to create new liquidity pools (LPs), enabling token swapping within the network and earning a portion of trading fees for providing liquidity. As of Thursday, ShibaSwap had over $25 million worth of tokens locked up, with $1.7 million in trading volume within the past day.
The developers emphasized that the more transactions executed on the Shibarium blockchain, the more significant the impact on the burn rate of SHIB tokens due to the protocol’s burning of base gas fees. This burning process involves permanently removing tokens from circulation by sending them to an uncontrolled address.
Furthermore, each swap and stake conducted on ShibaSwap contributes to the ecosystem’s expansion, as heightened trading activity results in increased fees for stakeholders and LP providers, as outlined in a post by the developers.
