Shiba Inu Transaction Fees Soar 493% in Shibarium Surge
- The Shibarium network has recorded a 493% surge in transaction fees, leading to speculation on how this could impact Shiba Inu’s SHIB.
- The rise in fees reflects increased adoption and user interest amidst recent market fluctuations.
Recent data shows a 493% surge in transaction fees on the Shibarium network. As seen on Shibariumscan, the transaction fees, which are quantified in BONE, the network’s native token, rose from 16.22 BONE to 79.18 BONE in the last seven days. Expectedly, this increase is consistent with a surge in transaction volumes. This is an indication of increased network adoption and heightened user interest.
Transaction volumes have surged by 278.5%, moving from 5,865 to 16,337 in the last few days. With interest in Shibarium, the layer two scaling solution for the Shiba Inu ecosystem, recording heightened interest and demand for BONE on the rise, this could impact Shiba Inu’s SHIB.
Shibarium’s burning mechanism allows for part of the transaction cost, BONE, to be converted into SHIB, which is burnt. This influences the circulating supply by ensuring that the number of tokens is dropping even as investor demand continues to rise. Ideally, this should have a positive impact on token prices.
As Crypto News Flash reported, the Shiba Inu community has recently proposed a new burning mechanism on Binance and Coinbase. Similar to the Terra Luna (LUNC) burning mechanism deployed on Binance, this could reduce billions of SHIB tokens.
Since the launch of the SHIB burn initiative, 410,727,033,632,704 tokens have been incinerated. However, the community has expressed concern over the lack of significant price changes. Still, lead developer Shytoshi Kusama has noted that while the mechanism is effective, the number of burnt tokens remains relatively low compared to the total number of tokens in circulation.
In principle, the burning mechanism, now widely adopted in the cryptocurrency industry, should enhance the token’s scarcity and demand.
Amidst market fluctuations, this could be a key pillar to ensuring the success of SHIB, which has faced intense bearish pressure in recent weeks.
At the time of writing, SHIB is trading for $0.00001702 after a 6% plunge in the last 24 hours. This means that Memecoin has extended its weekly losses to 16%.
This performance has resulted in the coin being flipped by TRON (TRX) for the 12th ranking in the market. This is a major blow to the Dogecoin (DOGE) challenger, which is looking to join the elite top ten list like its main rival.
Some market experts have tipped SHIB to flip DOGE before the end of the year based on its 2024 price performance, the rising adoption and growth of its ecosystem, and its committed, diverse, and vibrant user and developer community.
