Shiba Inu (SHIB) token is now the third-largest consumer of gas on the Ethereum network due to the launch of ShibaSwap earlier today. The current network activity and consumption of gas surrounding Shiba Inu (SHIB) has been captured by Etherscan as highlighted in the following screenshot courtesy of the tracking website.
SHIB Becomes ETH’s 3rd Largest Consumer of Gas as ShibaSwap Goes Live 17
ShibaSwap Goes Live
As earlier mentioned, the high consumption of Ethereum gas fees by transactions in the Shiba Inu ecosystem is due to the launch of ShibaSwap earlier today. The team behind the Shiba Inu project announced the launch of ShibaSwap through the following tweet.
Three Tokens at the Core of ShibaSwap: SHIB, LEASH and BONE
According to the Shiba Inu Whitepaper, ShibaSwap ‘is a decentralized ecosystem enriched by its own decentralized exchange’.
At the core of ShibaSwap are the three tokens of SHIB, LEASH and BONE. Each of these tokens can be staked (BURIED) to earn xSHIB, xLEASH and tBONE respectively. Holders of the three tokens can also provide liquidity (DIGGING) to receive SSLP tokens.
A quick glance at the ShibaSwap website reveals that the protocol already has $221.39 million in total value locked. Additionally, the value of SHIB, LEASH and BONE currently stands at $0.000008844251, $2,465 and $18.84 as highlighted in the following screenshot.
SHIB Becomes ETH’s 3rd Largest Consumer of Gas as ShibaSwap Goes Live 18
Also from the above screenshot, it can be observed that ShibaSwap has a total of six functions as explained below.
DIG – Providing liquidity to earn BONE
FETCH – Migrating UNI V2-LP or SLP tokens to earn BONE
BURY – staking tokens to earn returns
SWAP – exchange Ethereum tokens through ShibaSwap
BONEFOLIO – a way to track your individual portfolio in the Shiba Inu ecosystem
WOOF – yield farming involving various Ethereum based tokens
Ethereum’s maximum price could lie between $75k and $175k
This peak value could be reached in the next 15 to 20 years
The analysis of Ethereum’s maximum value and timeframe assumes that ETH is a technology that follows a diffusion function represented by a Gompertz Curve
As with all models, the price of Ethereum may be affected by unpredictable events in the future
The number two digital asset of Ethereum (ETH) could reach a maximum price within the range of $75,000 and $175,000. This is according to a research note shared by Timothy Peterson of Cane Island Alternative Advisors where he also pointed out that such a peak value could occur in the next 15 to 20 years.
Methodology Used to Estimate Ethereum’s Peak Value of $75k to $175k
In the research note, Mr. Peterson goes on to explain that the aforementioned peak value of Ethereum is calculated on the assumption that ETH ‘is a technology that follows a diffusion function represented by a Gompertz curve’. He goes on to provide the following equation and parameters for the estimated Gompertz Curve for Ethereum.
Source, Cane Island Alternative Advisors
A Wide ETH Estimate of $75k to $175k is Due to A Large Margin of Error
Mr. Peterson also points out that his methodology has a large margin of error hence the wide range of $75k to $175k within a fifteen to twenty-year period. He explains this fact through the following statement and accompanying chart.
The margin of error is quite large and so the estimated saturation value for Ethereum ranges between $75,000- $175,000 in about 15-20 years (Figure 3 below).
Based on an initial price of $2,000 and a 15-20-year horizon, Ethereum’s average annual rate of return would range between 20% and 35%. It should be noted these are conservative estimates.