The price of PAW token has surged by 40% in the past seven days, according to CoinMarketCap. The token is currently trading at $0.00000001976.
PAW token is the native token of the PawSwap decentralized exchange (DEX) and Paw Chain blockchain. The DEX is expected to launch in late 2023 or early 2024.
Ryboshi Nakamura, a Discord admin for the PawSwap community, believes that the recent price surge is due to the staking mechanism for PAW tokens.
The staking mechanism was launched at the end of April, and more than 200 trillion PAW tokens were locked in the staking contract within 24 hours.
Staking puts coins temporarily out of circulation, increasing their scarcity. This can lead to an increase in price, as there are fewer coins available to buy and sell.
Nakamura also tweeted “to the moon,” which suggests that he expects the price of PAW token to rise even higher in the near future.
In addition to the staking mechanism, the Paw Chain development team is also working on a Layer 2 wallet called Pawallet. The wallet will allow users to hold, buy, and sell crypto, as well as interact peer-to-peer off-chain.
The development team has not disclosed any details about the features that will be launched on the wallet, but it is possible that these features could also contribute to the price surge of PAW token.