Gushiken Yona
Bone ShibaSwap (BONE) is poised for a potential price surge as a looming token scarcity grips the market.
A significant portion of BONE tokens, amounting to around 22% of the circulating supply, is currently locked up, creating a perfect storm for investors. According to data from blockchain analytics platform Arkham Intelligence, around 51 million Bone ShibaSwap (BONE) is currently locked up.
When compared to the total circulating supply of roughly 230 million BONE, this represents a substantial 22.17% of the tokens. Consequently, only around 77.83% or approximately 179 million BONE are freely circulating in the market.
What does this mean?
This development, coupled with the increasing demand for BONE on the Shibarium network, where it serves as the official gas fee token of the network, has ignited speculation about a potential price surge that could reshape the Shiba Inu ecosystem.
This scarcity of circulating BONE tokens can exert upward pressure on prices, as basic economic principles dictate. With fewer tokens available for trading, each BONE token becomes relatively more valuable.
This scarcity is a phenomenon often referred to as a “supply crunch,” which typically exerts upward pressure on prices.
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However, it’s essential to note that a supply crunch can also lead to increased price volatility. When the supply of a token is limited, even relatively small changes in buying or selling pressure can cause significant price fluctuations. This heightened volatility can create both opportunities and risks for investors.
Moreover, while a supply crunch often correlates with price increases, other market factors, such as overall market sentiment, regulatory changes, and project developments, also influence token prices. Therefore, while the current situation suggests potential upside for BONE, it’s crucial to consider these additional factors when making investment decisions.
Ultimately, the impact of the BONE supply crunch on its price will depend on a combination of factors, including the severity of the crunch, the overall market conditions, and investor sentiment.
Bone ShibaSwap (BONE) is facing a challenging period, as its price has been on a downward trajectory. As of 5:30 a.m. ET on Wednesday, BONE was trading at $0.4628, marking a 3.63% decline for the day.
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This downturn is part of a broader week-long slump, with the token shedding 10.04% of its value in the past seven days. The bearish trend extends even further, as BONE has plummeted by 6.79% over the past month.
Despite the price decline, trading volume has shown some resilience, increasing by 1.26% over the past 24 hours to $5,191,013. However, this uptick in volume has failed to prevent the price from falling.
With a current circulating supply of 229,923,351 BONE, the cryptocurrency’s market capitalization stands at $106,478,618, based on data from CoinMarketCap.
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YONA GUSHIKEN
Yona brings a decade of experience covering gaming, tech, and blockchain news. As one of the few women in crypto journalism, her mission is to demystify complex technical subjects for a wider audience. Her work blends professional insight with engaging narratives, aiming to educate and entertain.
