Key Insights:
Bone ShibaSwap (BONE) has been on an upward trajectory recently. The token has been steadily surging on the charts, securing a spot as the 91st-largest token by market cap.
The rise of BONE has been remarkable on all levels. In the past 24 hours, it has pumped 3% and 24% in the last seven days — making it among the top three largest daily gainers.
What is the fuss concerning BONE? Why has it been increasing, and how far can it get? Let's see what we can find out.
BONE is the token of the ShibaSwap DEX. BONE has grown in leaps and bounds as a beneficiary of the Shiba Inu ecosystem.
The token enables the DEX to function appropriately by providing liquidity (as a liquidity pool). It can be staked, used as a reward, bought, and sold on its native exchange and other exchanges, respectively.
Shibarium, Shiba Inu's layer 2 blockchain, will soon be launched. This was announced by the company's co-founder Shytoshi Kusama.
He further mentioned how the token would play an essential role in the new system, performing as a "passport" for users.
First and foremost, it is the token that delegators and validators "burn" to earn part of their rewards. Also, it will serve as the "gas" token for Shibarium, enabling transactions within the system. Finally, it will facilitate technology "governance" within the new platform, allowing holders to impact the future developments of the system.
Before the launch, the team intends to mint the entirety of BONE and renounce the contract afterward. This is a surefire method to increase its value further.
About 230 million tokens have been minted out of 250 million in circulation. The remaining 20 million tokens would reward delegators and validators for their contributions to the platform.
Kusama said,
"This is a necessary step to starting our blockchain."
After the announcement, the token's value increased by more than 3%. It also performed favorably on social media with 2.8 million mentions, ranking highly in positive sentiment.
Shiba Inu was included in this, as its burn rate doubled within 24 hours. This has increased the possibility of a price rally after a successful breakout of an ascending triangle formation.
On-chain data indicates that almost 88% of addresses are profitable, with the remaining 12% at the break-even point. This suggests that most investors bought the token at a lower price than its current trading price.
Since it hit its ATH of $41.67 in September 2021, the token has fallen and risen in equal measure. However, the former has been more profound, reaching $0.85 as the end-of-the-year price in 2022.
So far, in 2023, it has performed well. It surged to $2 in February before plummeting — a casualty of the SEC suing Binance and Coinbase.
When Crypto.com suspended its US institutional operations in June, it dropped to $0.67. Since then, it has jumped by more than 140% and, by August 2, was worth $1.65.
Different analysts have made their predictions for the token.
CoinCodex said it would drop to $1.56 by August 7 before recovering to $1.86 in early September.
Generally, the predictions seem primarily positive, and rightfully so, due to Shiba Inu's new blockchain layer update. BONE's upcoming role in the blockchain would make it a token to be on the watch for.
Yet, we can't say how its future will pan out. Therefore it is essential you DYOR.
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