SHIB to Become Scarcer as Key Exchange Expands to Shibarium

ShibaSwap, the decentralized exchange (DEX) associated with the Shiba Inu (SHIB) cryptocurrency, has announced its expansion to the Shibarium blockchain. This Ethereum layer 2 solution, developed by the SHIB token team, is expected to significantly impact the SHIB ecosystem by increasing the token burn rate and reducing its circulating supply.

ShibaSwap Goes Live on Shibarium

On Thursday, ShibaSwap revealed that it is now live on the Shibarium blockchain. This integration allows users to create new liquidity pools (LPs), enabling token swaps on the network and earning a portion of the trading fees for providing liquidity. According to data, ShibaSwap held over $25 million in locked tokens as of Thursday, with trading volumes reaching $1.7 million in the past 24 hours.

Impact on SHIB Token Burn Rate

The developers highlighted that the increased use of the Shibarium blockchain for transactions will result in a higher burn rate for the SHIB token. Token burning refers to the permanent removal of tokens from the circulating supply by sending them to an address that no one controls. “The more transactions that run on the Shibarium blockchain, the more the protocol will burn base gas fees, which will impact the overall burn rate of $SHIB,” the developers stated.

SHIB Price Reaction

The SHIB token has responded positively to these developments, with its price rising 8.8% in the past 24 hours. This price increase aligns with a broader market uptrend. The expectation is that as more transactions occur on Shibarium, the increased burning of base gas fees will further reduce the circulating supply of SHIB, potentially driving the token’s value higher.

Ecosystem Growth

ShibaSwap’s expansion to Shibarium is seen as a significant step for the SHIB ecosystem. Every swap and stake on ShibaSwap contributes to the ecosystem’s growth, with increased trading volumes generating higher fees for stakers and LP providers. “Every transaction on ShibaSwap will contribute to the ecosystem’s growth, bringing higher fees for stakers and liquidity providers,” the developers noted in a post on X (formerly Twitter).

As ShibaSwap continues to integrate with Shibarium, the anticipated increase in SHIB token burns could have a lasting positive impact on the token’s scarcity and value. For more updates on ShibaSwap and the SHIB ecosystem, stay tuned to our news platform.