ShibaSwap, Shiba Inu’s DEX is integrating with Shibarium in SHIB’s most recent announcement.
This integration is expected to increase transaction volume, burn more $SHIB tokens, and even drive the price up.
ShibaSwap users can now create liquidity pools on Shibarium, allowing easier token swaps and earning opportunities.
Shibarium's burning mechanism will collect fees from transactions on ShibaSwap, further reducing the circulating supply of $SHIB.
Analysis shows a possible 75% price increase for $SHIB after this development.
Shiba Inu is at the cusp of another step in the path towards growth.
According to recent reports, ShibaSwap, the DEX linked to the $SHIB cryptocurrency has announced an integration to the Shiba Inu Layer 2 scaling solution, Shibarium.
This strategic expansion is set to introduce new levels of growth on $SHIB from improving scarcity, increasing burn rates and ultimately pushing its price further upwards.
Shibarium by nature, was created to make transactions faster and more efficient, compared to using the Ethereum network itself to send and receive SHIB.
However, recent reports have indicated that ShibaSwap is set to tap into these advantages that Shibarium offers, by expanding to the L2 network.
This expansion promises an uptick in transaction volume, a drive-up in Shiba Inu's burn rates and a lower circulating supply for Shiba Inu overall.
The ShibaSwap announcement
The official Shiba Inu account made the announcement this week, causing an almost immediate reaction from the market.
The price of SHIB, for example, has skyrocketed by around 7% within the last 24 hours since writing, along with Bitcoin and the rest of the market.
This shows the Shiba Inu community's optimism about this new expansion, and its impact on the price of Shiba Inu.
According to the announcement, ShibaSwap users will now be able to create new liquidity pools (also known as LPs) on the Shibarium network.
By so doing, users will be able to swap tokens more easily and quickly, and also earn a share of the fees collected as commission for providing said liquidity.
ShibaSwap ata from Defillama
In fact, according to DefiLlama, ShibaSwap currently boasts of over $25 million worth of locked tokens, with a trading volume of around $1.7 million recorded over the last 24 hours before writing.
This shows a great deal of enthusiasm in the ShibaSwap development, and plenty of opportunities for everyone.
The Shiba Inu Official announcement also highlighted how the Shibarium protocol was initially designed to collect, and then burn gas fees from each transaction.
A larger burn rate on SHIB
ShibaSwap joining the fray is set to help the Shibarium network collect more fees, which can then be burned at a higher rate to reduce the supply of SHIB over time.
Moreover, these token swaps on the ShibaSwap ecosystem is also set to generate more commission for stakers and liquidity providers, creating a relationship of sorts between users, liquidity providers and the platform.
Shiba Inu's price outlook
Overall, the most recent development in the Shiba Inu ecosystem is set to be a big deal for Shiba Inu, considering the most recent breakout from the descending triangle shown above
Shiba Inu might consolidate between $0.000024 and $0.00002632 for a while. However, ultimately, the door is now open for a 75% rally further up to $0.00004567 or even higher.
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