The Uniswap-cloned protocol’s activities have negatively affected Ethereum gas fees.
The Origin of High Fees?
Presently, Ethereum gas fees are raking in high numbers on the cryptomarket. These wild fees can be attributed to ShibaSwap. How so one might ask?
The protocol Tweeted on the 7th of July about an incredible accomplishment in the Decentralized Finance (DeFi) space. According to the report, ShibaSwap recorded 1 billion dollars in Total Value Locked (TVL) in a single day. The statistic proposes that the Uniswap-cloned protocol is the primary cause of the latest surge in Ethereum gas fees.
ShibaSwap a Major Player in Ethereum Gas Fee
The protocol’s native token — $SHIB, has seen a significant turnaround in value with the launch of the new swap protocol on the 6th of July. While most tokens that hit an All-Time High (ATH) crash and lose value in no time, the $SHIB token has kept its place in the spotlight. ShibaSwap increased the adoption of the meme coin and sent gas fees through the roof.
Some new incentives are coming to the protocol, and one can only expect gas fees to pump even more. The protocol took to Twitter to announce its full Certik audit on the 10th of July, representing fantastic work by the development team after just recently launching.
When the protocol was launched, the average gas fee almost tripled due to its usage. According to Etherscan, gas prices increased from 20 Gwei on 5th July to 55 Gwei on July 6th, moments after ShibaSwap’s launch.
Simultaneously, the ShibaSwap contract became the number one gas consumer on the Ethereum ecosystem the same day, its $SHIB token was ranked third. At the same time, the SHIBA migrator stayed at number four.
Final Thoughts
Within 48 hours of its launch on the 6th of July, ShibaSwap recorded 1.4Billion TVL, roughly half of Sushiswap’s 2.8 Billion TVL. This extraordinary statistical reference is enormous for the Ethereum network as it does not help tackle gas fees. Yes, ShibaSwap is one of the hottest projects on the DeFi market, but as the case may be, its progress has sent Ethereum gas fees through the roof.
What Is ShibaSwap?
ShibaSwap is another clone of popular Ethereum Swapping protocols, SushiSwap and Uniswap. The protocol has similar features, giving users the ability to DIG (provide liquidity), BURY (stake), and SWAP tokens to gain WOOF returns through its sophisticated and innovative passive income reward system. In addition, the protocol also gives users access to upcoming Non-fungible tokens (NFTs) and tools like portfolio trackers, ensuring that crypto navigation is easy.
Source : bsc.news
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