Fourth try to post this.The reason Ether holders should be thrilled that SHIB has high trading volume is that SHIB is built on Ethereum as an ERC-20 token.Since August, Ethereum devs implemented EIP-1559 which introduced the "burn" mechanism for Ethereum. In a nutshell, every time Ethereum processes a transaction, a part of the fee is burned.This drastically reduces the supply of Ethereum(and will even further reduce it once Eth 2.0 comes out).So, every SHIB traded back and forth means more Ethereum burned. Actually, according to ultrasound.money, SHIB is one of the top burners of Ethereum in the last month.Once Ethereum becomes a Proof of Stake chain(2.0), Ether issuance will plummet to about half a percent per year. That combined with the burn mechanism will make Ether a deflationary asset.The more Ether that's burned today, the less there will be come time for the merge to Proof of Stake.Supply and demand.SHIB traders, do your thing. We'll see you on the moon.
Submitted October 30, 2021 at 10:01AM
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