Bitcoin Has Best Day in 2 Months as SHIB to Get More Scarce with Shibarium

Bitcoin experienced its largest single-day rise in nearly two months, while ShibaSwap’s expansion to Shibarium is set to increase SHIB’s scarcity by boosting its burn rate.

ShibaSwap Launches on Shibarium, Increasing SHIB Token Use and Boosting Burn Rate for Scarcity

According to CoinDesk, ShibaSwap, the decentralized exchange (DEX) linked with the Shiba Inu (SHIB) cryptocurrency, announced on May 16 that it had gone live on the Shibarium blockchain. This is a significant development as Shibarium is an Ethereum layer two constructed by the SHIB token team, and its launch is expected to increase the use of the SHIB token.

The developers stated that the growing use of the Shibarium blockchain for transactions would result in a higher burn rate for the SHIB token, diminishing supply. The SHIB price has climbed 8.8% in the last 24 hours, coinciding with a more significant market rally. The CoinDesk 20 Index (CD20), a measure of the overall cryptocurrency market, has risen nearly 7%.

Excitingly, users now can create new liquidity pools (LPs) on Shibarium, a feature that enables traders to swap tokens on the network and earn a portion of trading fees for providing liquidity. This user-friendly interface is designed to enhance your trading experience and maximize your potential earnings.

“Rest assured, the more transactions that run on the Shibarium blockchain, the more the protocol will burn base gas fees. This will have a positive impact on the overall burn rate of $SHIB,” they said, reassuring the audience about the token's future.

Burning is permanently removing tokens from the circulating supply by sending them to an address no one controls.

As developers have emphasized in an X post, every swap and stake on ShibaSwap plays a crucial role in expanding the ecosystem. Your participation in increasing trade volumes not only results in higher payments for stakes and LP suppliers but also contributes significantly to the overall growth of the cryptocurrency market.

Bitcoin Rallies on May 15 as Markets Anticipate Global Central Banks' Shift to Rate Cuts

Bitcoin (BTC) experienced its most significant single-day rise in nearly two months on May 15 driven by dismal U.S. economic data that increased the likelihood of the Federal Reserve (Fed) joining other advanced-nation central banks in easing monetary policy with rate cuts during the summer.

According to data providers TradingView and CoinDesk, the top cryptocurrency by market value surged more than 7.5% to $66,250, marking the highest percentage gain since March 20. BTC, like other risk assets, is sensitive to anticipated changes in major central banks' monetary policy stances, rallying when the cost of borrowing fiat money is expected to decrease.

Data released by the U.S. Labor Department showed that the consumer price index (CPI) rose less than expected in April, indicating a renewed downward trend in the cost of living in the world's largest economy. The headline CPI increased by 0.3% last month, following 0.4% gains in March and February. The core CPI, which excludes food and energy costs, also rose by 0.3% in April after a 0.4% increase in March.

Additionally, headline retail sales growth stagnated in April, with sales in the "control group" category, used to calculate GDP, falling 0.3% month on month.

As a result, rate-cut expectations shifted dramatically. Fed funds futures indicate that traders now anticipate the Fed's first 25 basis point rate cut to occur in September. The Fed has also signaled a reduction in the pace of quantitative tightening, a liquidity-tightening measure, beginning in June.

The Fed is not alone in this approach. The Bank of England (BOE) and the European Central Bank (ECB) are expected to cut interest rates in June. Meanwhile, the Swiss National Bank (SNB) and Sweden's Riksbank have already lowered their benchmark borrowing rates.

Central banks globally are moving towards renewed monetary or liquidity easing, which bodes well for risk assets, including cryptocurrencies. Data from the tracking website MacroMicro shows that the percentage of global central banks last raising interest rates is rapidly declining, while the percentage last reducing rates is increasing.

"The higher the proportion goes, the more central banks are cutting rates, which could help improve market liquidity. The lower the proportion, the less liquidity there is in the market," MacroMicro explained.

The prospect of liquidity easing during the summer is expected to benefit equities, giving investors sufficient confidence "to remain further out on the risk curve," according to brokerage firm Pepperstone.

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