ShibaSwap expanded to the Shibarium blockchain, allowing users to create new liquidity pools and earn fees from providing liquidity.
Increased transactions on the Shibarium blockchain will lead to a higher burn rate for the SHIB token, reducing its circulating supply.
ShibaSwap, the decentralized exchange (DEX) associated with the Shiba Inu {{SHIB}} cryptocurrency, said Thursday it was live on the Shibarium blockchain, an Ethereum layer 2 built by the SHIB token team.
The developers said the increased use of the Shibarium blockchain for transactions will result in a higher burn rate for the SHIB token, reducing supply. The SHIB price has risen 8.8% in the past 24 hours, in line with a broader market jump. The CoinDesk 20 Index (CD20), a measure of the wider crypto market, has rallied almost 7%.
Users can now float new liquidity pools (LPs) on Shibarium, allowing traders to swap tokens on the network and earn a cut of trading fees for providing liquidity. ShibaSwap held over $25 million in locked tokens as of Thursday, data shows, with $1.7 million in trading volumes in the past 24 hours.
“The more transactions will run on Shibarium blockchain, the more the protocol will burn base gas fees which will impact the overall burn rate of $SHIB,” they said.
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.⁰In addition, the more transactions will run on Shibarium blockchain, the more the…
— Shib (@Shibtoken) May 15, 2024
Burns refer to the permanent removal of tokens from circulating supply by sending them to an address that no one controls.
Every swap and stake on ShibaSwap contributes to the ecosystem's growth as increased trading volumes bring higher fees for stakers and LP providers, developers said in an X post.