September 27, 2023 at 15:24 GMTModified date: September 27, 2023 at 15:24 GMT
September 27, 2023 at 15:24 GMT

Shiba Inu’s BONE surges after token renunciation

$BONE, a governance token part of the Shiba Inu (SHIB) ecosystem, has stood out from the crypto market after recording a 12% price in the past day.

Shiba Inu’s BONE surges after token renunciation

Bone ($BONE), a governance token part of the Shiba Inu (SHIB) ecosystem, has stood out from the crypto market after recording a 12% price surge in the past day.

A potential catalyst behind this price spike could be in the decision to fully renounce the deployer contract for the Bone tokens. 

Renouncing a smart contract is when the contract’s creator surrenders control over it. This move aims to instil confidence among investors as the contract can no longer be changed or manipulated by its creator.

This decision by the Bone developers appears to have resonated with traders and the community. There has been a substantial increase in trading volumes, which are now $3million higher compared to levels just a day ago.

The creation and rise of CAL

Bone developers created the Calcium (CAL) token to make the renunciation possible. While it was not designed as an investment instrument or with any other utility in mind, CAL quickly found a community among activist investors.

Notably, more than 50% of CAL’s supply was promptly acquired by a bot shortly after launch, which made these tokens tradable on the decentralised exchange ShibaSwap. 

Meanwhile, other community members utilised their CAL holdings to establish a new trading pair on Uniswap. This move garnered over 1,400 holders who voiced their discontent with Shiba Inu’s promises, and expressed an intention to transform Calcium into a legitimate project.

At the time of writing, CAL has experienced an impressive 238% surge since its launch just last week, boasting a 24-hour trading volume of $7m and a market cap of $13m.

However, some Shiba Inu community members have cautioned against acquiring CAL tokens, emphasizing that they were not originally designed as investable assets.

Bone experiences similar price surge

Along with CAL, Bone also witnessed a noteworthy price surge following the contract renunciation. Bone’s value surged from $0.82 on 26 September to reach a peak of $0.92 the following day, marking a significant 12% increase.

Bone’s 24-hour trading volume saw a 50% increase, reaching $8.4m. Meanwhile, the token’s market capitalisation has grown by almost 4%, positioning it at the 127th rank among all cryptocurrencies.

At the time of writing, Bone has retraced slightly from its peak and is trading at $0.88.

Shibarium’s rocky launch

This renunciation of the Bone contract coincides with the recent launch of the Shiba Inu ecosystem’s native blockchain, Shibarium, which went live in August.

The blockchain has faced initial challenges, including temporary shutdowns due to unexpectedly high traffic following the mainnet launch. However, Shibarium is beginning to display resilience and potential.

Notably, the layer-2 network has processed over three million transactions in less than a month, indicating substantial adoption within the crypto community. 

However, the network has recently experienced a slight dip in the transaction volume and the total volume locked (TVL) into the blockchain. The TVL dropped from $1.4m at the end of August to $677,000 as of 27 September. 

The dip in TVL follows a similar price decline in Shiba Inu, the blockchain’s main token. It has fallen by 11% over the past month.