JOE’s annual inflation fell to 0.26%. The rewards paid to users in JOE tokens have increased by 47% in the past seven days.
Decentralized Exchange (DEX) Trader Joe [JOE] saw a significant increase in trading activity over the past week, moving up to fourth place on DeFiLlama’s ranking of the top DEXs by volume.
Read Trader Joes [JOE] Price forecast 2023-2024
Transactions worth nearly $590 million were settled on the platform in the past seven days. This represented an increase of almost 50% compared to the previous weekly period.
The steady increase in volume bolstered the ecosystem’s appeal of the native token, as it delivered monthly gains of more than 48% at the time of writing, data from CoinMarketCap revealed.
Moreover, Trader Joe also shared a crucial update that could further boost JOE’s price soon.
JOE getting scarce?
Trader Joe announced that daily JOE issues, or the rewards sent to liquidity providers (LPs), are down from 4,289 to 2,486 at the time of writing. This represented a 42% reduction in the number of JOE tokens entering the daily circulating supply.
Trader Joe further added that JOE’s current annual inflation rate has fallen to 0.26%. This was an important step in making the token deflationary.
As part of the current set up, LPs earn extra incentives aside from the trade cost portion. The LPs that contribute to liquidity pools receive LP Tokens, which are in turn deposited to earn rewards in the form of JOE Tokens.
It should be noted that JOE’s maximum supply is capped at 500 million, of which 336.43 million tokens were in circulation at the time of writing, according to CoinMarketCap.
Driven by the concept of scarcity economics, crypto projects have made every effort to deflate their own tokens in order to achieve higher prices in the future.
Daily $JOE emissions to Liquidity Providers reduced by 42%. From 4,289 to 2,486 (Approximately $1.5k per day).
Trader Joe is building an ultrasonic, long-term sustainable ecosystem 🌱
— Trader Joe🔺💙🔶 | 🌊📘 (@traderjoe_xyz) April 20, 2023
Token rewards increase
The value of JOE tokens awarded to users on Trader Joe has skyrocketed since the beginning of April. Data from Token Terminal showed that token incentives are up 47% in the past seven days.
However, after a sharp upward trend that saw daily active users on the DEX hit their all-time high on April 14, the momentum reversed.
How much are 1,10,100 JOEs worth today?
JOE’s value has fallen over the past week, losing more than 13% to trade at $0.5763 at time of press. The network’s growth has been downhill since mid-April, highlighting the lack of interest among new addresses.
One reason for this could be the sharp decline in the MVRV ratio, which indicates a drop in network profitability. The weighted sentiment also trended into the negative territory, lending credence to investors’ waning optimism about JOE.
This post Trader Joe takes steps to boost his ecosystem, JOE will reap the rewards
was published first on https://ambcrypto.com/trader-joe-takes-steps-to-boost-its-ecosystem-will-joe-reap-the-benefits/