As a seasoned crypto investor with a keen interest in meme coins, I’ve been closely monitoring the developments around Shiba Inu (SHIB) and its ecosystem. The recent surge in SHIB’s price, up more than 5 percent in the last 24 hours, is an exciting development that I believe is driven by several factors.
The largest meme coin, Shiba Inu (SHIB), experienced a surge of over 5% in the past 24 hours and was trading near $0.000025 during the London trading session on Thursday.
As a seasoned crypto investor, I’ve noticed that the large-altcoin with a market capitalization of approximately $25 billion and an average daily trading volume of around $945 million, has experienced substantial growth due to the surge in popularity and demand for meme coins.
As a crypto investor, I’ve observed an intriguing development in the world of digital currencies. The buzz surrounding GameStop Corp and its impact on the stock market has inadvertently given birth to a surge of new cryptocurrency projects that can be categorized as meme coins. This trendy subsegment of the crypto market has witnessed a significant upswing as a result, making it an exciting area to keep an eye on.
Shiba Inu Benefits from Shibarium Adoption
I’ve analyzed the developments in the Shiba Inu project and found that it has transitioned from being primarily focused on speculation as a meme coin to offering utility through its Shaibarium layer two scaling solution. At present, the TVL (Total Value Locked) within the Shibarium network amounts to approximately $2.3 million. The majority of DeFi (Decentralized Finance) projects integrated in this network are geared towards DEX (Decentralized Exchange) operations.
Among the DeFi projects thriving on the Shibarium network are WoofSwap DEX, CheeySwap, MARSWAP, DogSwap, and others. The latest integration of the Shibarium network has brought to life ShibaSwap, the native decentralized exchange of Shiba Inu, making it part of this vibrant DeFi community.
I, as an analyst, can explain that the Shibarium network’s integration with ShibaSwap now allows ShibArmy to create liquidity pools using smart contracts. This means that ShibArmy members can take advantage of this new feature and contribute to the decentralized finance (DeFi) aspect of the Shiba Inu ecosystem.
ShibaSwap now enables the creation of new liquidity pools on Shibarium (LPs).
Effortlessly exchange your preferred tokens between Ethereum and Shibarium, taking advantage of the unique benefits each platform provides. It’s simple to include your favorite tokens in ShibaSwap by setting up a liquidity pool.
— Shib (@Shibtoken) May 15, 2024
The incorporation of ShibaSwap into Shibarium’s network will lead to a significant uptick in on-chain transactions. This increase in activity is expected to boost the rate at which SHIB tokens are burned. As per available on-chain statistics, over 41% of the entire Shiba Inu token stockpile has already been destroyed through burning.
Each transaction executed on ShibaSwap, be it a swap or a stake, contributes significantly to our ecosystem. The surge in trading volumes leads to higher fees for stakers and liquidity providers, making ShibaSwap a preferred platform for community tokens. Moreover, the increasing number of transactions processed on the Shibarium blockchain results in an increased burn rate of base gas fees, ultimately influencing the overall $SHIB burn rate.
Market Picture
The addition of ShibaSwap to the Shibarium network has positively impacted the value of the Bone ShibaSwap token. As per current market statistics, the BONE token is priced around 62 cents, marking a nearly 10 percent increase in value over the past day.
As a market analyst, I can tell you that Shiba Inu and associated tokens are poised to become more accessible to mainstream investors as transaction fees decrease. The recent Ethereum network upgrade, known as Denver, has brought about reduced fees for all layer two projects, including Shiba Inu. While this development may slightly affect Ethereum’s deflationary status, the overall cost savings for users is a significant advantage in attracting more investors to these tokens.
The Shiba Inu meme token continues to hold its own against other meme coins due to its substantial liquidity. Notable institutional investors, such as Crypto.com, Robinhood Markets Inc (NASDAQ: HOOD), and Binance Holdings Ltd, have added their support by investing in Shiba Inu.
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2024-05-16 14:54