Dogecoin’s “competitor” (DOGE) is increasing its weight in the DeFi, with the launch of decentralized exchange (DEX) ShibaSwap, whose TVL (deposited value) reached 10 figures in just 24 hours. However, the platform has a major flaw, which could put the funds deposited on it at risk.
Shiba Inu accelerates on Ethereum
Ethereum saw a peak in daily transactions at $1.7 million during the month of May this year. That number dropped slightly above $1 million in June, before rising back above $1.35 million in early July. Transaction fees were over $70 in May and were down to $2.33 by the end of June. Today, they average $10.
According to Etherscan data, Uniswap (UNI) and Tether (USDT) are the biggest consumers of gas. The Shiba Migrator contract and the ShibaSwap exchange are in fourth and sixth place respectively in the ranking, at the time of writing this article.
The TVL of the DEX ShibaSwap has thus reached 1 billion dollars, in the space of only one day after its launch.
A DEX under the control of a king
The SHIB token peaked at USD 0.00003791 last May and is currently trading at 0.000006135, 83% below the aforementioned peak. The token had seen a sharp decline in May, after reaching its peak, due to Vitalik Buterin parting with 50% of the total SHIB supply worth approximately $6 billion at the time. As they had been sent to his wallet without his knowledge, he donated them to charity.
Will ShibaSwap be able to maintain or further increase cryptophile interest in Shiba Inu? Former CTO of data provider Santiment, Valentin Mihov, warned investors who would give in to the siren songs of DEX, with the prospects of a potential 4-figure annual return of 5,000%. He pointed to the staking contract that allows a single person to “migrate deposited funds”.
ShibaSwap reacted to this warning. Indeed, developer YFI Banteg reported that the DEX developers had “transferred the ownership role to a 6/9 multisig”.
Will ShibaSwap be as successful as Uniswap? The hype around SHIB-related projects is causing transaction fees on Ethereum to skyrocket. Fortunately, Ethereum’s London update is coming. That should make the gas more bearable for DeFi users!
