- K9 Finance's liquid staking platform launches on September 19, enabling BONE token staking on Shibarium to boost SHIB burn rates.
- Increased SHIB burns, driven by higher total value locked (TVL) and transaction volume, could reduce token supply and support price growth.
- Liquid staking could enhance Shibarium’s network security and attract more investors, potentially leading to higher SHIB price recovery.
On September 19, K9 Finance plans to officially introduce its Shibarium liquid staking platform. Users will be able to stake BONE tokens on the new platform, which will expand the Shiba Inu ecosystem.
Notably, since this launch will increase the total value locked (TVL) and transaction volume within the Shibarium network, it is anticipated that SHIB's burn rate will be significantly impacted.
Impact on SHIB Burn Rate and Total Supply
Additionally, burning SHIB tokens is one of the main mechanisms in the Shiba Inu ecosystem. The only way to possibly raise the token's value is to decrease its supply. By drawing more investors to the platform, the liquid staking feature may hasten these burn events by increasing TVL and transaction activity.
Moreover, SHIB's burn rate increased recently by 3,348%, eradicating 7.8 million tokens in a single day. The Shiba Inu community viewed this rise in burn activity favorably, as it lessened the pressure of inflation on the meme-based cryptocurrency.
Furthermore, Liquid staking is anticipated to improve the Shibarium network's general security. The TVL rises with more users staking their BONE tokens, which directly improves network security by reducing vulnerability.
Hence, the increased involvement may also increase investor trust in the ecosystem. The SHIB burn rate may rise in response to an increase in Shibarium transaction volume, which would put additional deflationary pressure on the token.
Future Potential for SHIB Price Growth
However, the price of SHIB has somewhat decreased as a result of recent burn events. A decline in sell-offs and an increase in staking activity indicate that a recovery in the token's value may be imminent.
Therefore, a stronger price rally for SHIB might be fueled by the burn events that ensue if liquid staking becomes widely adopted. In order to sustain momentum toward its deflationary objectives, the Shiba Inu ecosystem must act quickly with the launch of K9 Finance's liquid staking platform.
The post K9 Finance Unveils Liquid Staking on Shibarium, Enhancing SHIB Burn Rates appeared first on Crypto News Land.