Shiba Inu (SHIB) is the main consumer of ETH gas amid the recent outbreak of DeFi, HODLers are screaming in response to the launch of the long-awaited decentralized exchange.
While a number of DeFi tokens are increasing in value, the ‘Dogecoin Killer‘ Shiba Inu is at the top of the Ethereum network in terms of gas usage, suggesting a strong connection between the two.
Shiba Swap and the subsequent DeFi wave
Yesterday, SHIB (the official Twitter account for the SHIBA ecosystem) announced that Shiba Swap went live. Shiba Swap is a decentralized exchange developed by the anonymous Shiba Inu team, which also allows traders to wager their SHIB tokens and be rewarded later.
Since then, Shiba’s turnover has skyrocketed, as evidenced by the ethereum gas tracker. Yesterday, the ShibaSwap contract topped the list in terms of transaction fees, followed by Shiba Migrator in 2nd and the real Shib token in 5th. Meanwhile, xSHIB came in at #6 and the token LEASH at #17 – all tokens associated with the Shiba Inu ecosystem.
So you may be asking yourself, what just kicked of #DeFi season?
Look no further than your favorite dog coin, $SHIB.
Shiba Inu coin is currently the number #1, #3, and #4 biggest $ETH gas guzzlers on Ethereum
— Joe McCann ◎ (@joemccann) July 6, 2021
Like many major events within the cryptocurrency market, Shiba is not moving in isolation: a number of other DeFi currencies are rising in price along with the launch of the exchange, possibly due to the excitement surrounding it. While Uni’s swap has recently increased by 11%, Aave and Compound has recently increased by over 20%. The most significant price increase was seen in KuCoin, which rose 42% in just one day.
What is Shiba Inu anyway?
The Shiba Inu quickly gained traction in May, driven by the wave of excitement surrounding Dogecoin’s price rise above $0.7 that same month. Its popularity has spread to some of its successor dog-face meme coins, including Shiba Inu, a coin named directly after the royal breed of the famous “Doge”.
In fact, the Shiba ecosystem consists of three tokens: SHIB, LEASH and BONE. Each token serves a different function related to the newly launched Shiba Swap exchange, with nothing to justify its assessment as a unique digital asset beforehand.
However, Ben Casselin, head of research and strategy at AAX, explained why he doesn’t take the meme token lightly:
“Instead of just dismissing the hype out of hand, it’s important to realize that what we’re seeing is the mass movement of new crypto merchants moving into space.”