The ShibaSwap decentralized exchange (DEX) has expanded to the Shibarium blockchain, offering users the ability to create new liquidity pools and earn fees from providing liquidity. This move is expected to increase transactions on the Shibarium blockchain, consequently leading to a higher burn rate for the SHIB token and reducing its circulating supply.
ShibaSwap announced its integration with the Shibarium blockchain, an Ethereum layer 2 solution developed by the SHIB token team. The developers anticipate that the growing usage of Shibarium for transactions will result in a greater burn rate for SHIB tokens, thus impacting the token’s supply. Over the past 24 hours, the SHIB price has surged by 8.8%, aligning with a broader market upswing reflected in the CoinDesk 20 Index (CD20), which has seen a nearly 7% rally.
With the launch on Shibarium, users now have the ability to establish new liquidity pools (LPs), enabling token swaps on the network and earning a portion of trading fees for providing liquidity. ShibaSwap has reported over $25 million in locked tokens as of the latest data, with $1.7 million in trading volumes recorded in the past 24 hours.
The protocol’s developers have emphasized that the increased transaction activity on the Shibarium blockchain will lead to the burning of base gas fees, ultimately impacting the overall burn rate of the SHIB token. Burns involve the permanent removal of tokens from circulation by sending them to an address that is not controlled by any party.
Each swap and stake conducted on ShibaSwap contributes to the ecosystem’s growth, as heightened trading volumes generate higher fees for stakers and LP providers, according to developers’ statements shared in an X post.
