The launch of ShibaSwap on the Shibarium network will increase the Shiba Inu burn rate, thus increasing the asset’s scarcity.
Shiba Inu (SHIB), the largest meme coin ecosystem on the Ethereum (ETH) network, rallied more than 5 percent in the last 24 hours to trade around $0.000025 on Thursday during the London session.
The large-cap altcoin, with a fully diluted valuation of about $25 billion and daily average traded volume of around $945 million, has significantly benefited from the heightened meme coin demand.
Moreover, the recent spike in GameStop Corp-inspired crypto projects has triggered a notable rise in the meme coin industry.
Shiba Inu Benefits from Shibarium Adoption
As Coinspeaker previously reported, the Shiba Inu project has gradually shifted from a speculative-oriented meme coin to a utility-based cryptocurrency through its Shaibarium layer two scaling solution. As of this writing, the Shibarium network had a total value locked (TVL) of about $2.3 million, with most of the decentralized financial (DeFi) projects oriented toward DEX operations.
Some of the top-performing DeFi projects on the Shibarium network include WoofSwap DEX, CheeySwap, MARSWAP, and DogSwap, among others. In the latest Shibarium network integration, the ShibaSwap, the native Shiba Inu decentralized exchange, is now live.
As a result, ShibArmy can now benefit from the ShibaSwap integration with the Shibarium network through the creation of liquidity pools through smart contracts.
ShibaSwap now enables the creation of new liquidity pools on Shibarium (LPs).
Now, seamlessly swap your favorite tokens across both Ethereum and Shibarium, leveraging the best each has to offer. Anyone can add their favorite tokens on ShibaSwap by creating a liquidity pool for…
— Shib (@Shibtoken) May 15, 2024
The integration of the ShibaSwap into the Shibarium network will ultimately increase the on-chain activity, which will aid in speeding up SHIB token burns. According to on-chain data, more than 41 percent of the Shiba Inu total supply has already been incinerated.
“Every swap and every stake on ShibaSwap fuels our ecosystem. Increased trading volumes bring more fees for stakers and LP providers, cementing ShibaSwap as the go-to hub for community tokens. In addition, the more transactions will run on the Shibarium blockchain, the more the protocol will burn base gas fees which will impact the overall burn rate of $SHIB,” the Shiba Inu team noted.
Market Picture
The integration of ShibaSwap to the Shibarium network also significantly benefited the Bone ShibaSwap (BONE) token. According to the latest market data, BONE price trades around 62 cents, up approximately 10 percent in the past 24 hours.
Ultimately, Shiba Inu and its related tokens will be readily available to mainstream investors due to reduced fees. Moreover, the recent Ethereum’s Dencun upgrade dramatically reduced transaction fees for all layer two projects, despite impacting its deflationary status.
The Shiba Inu meme coin has remained competitive among its meme coin peers fueled by its deep liquidity. Some of the top institutional investors invested in Shiba Inu include Crypto.com, Robinhood Markets Inc (NASDAQ: HOOD), and Binance Holdings Ltd, among others.
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