Shibarium witnessed a remarkable surge in on-chain activity this week, with its daily transaction volume skyrocketing by an impressive 441%, reaching a total of 13,191 transactions by the end of the week. This surge in activity, associated with the Shiba Inu token, has grabbed the attention of the cryptocurrency community.
The spike in Shibarium’s transaction volume can be attributed to the increased interest in Shiba Inu tokens, likely influenced by recent market fluctuations. This surge not only led to a surge in transaction demand but also resulted in a notable increase in transaction fees.
The rise in transaction volume is a positive development for the Shiba Inu community, as each transaction on Shibarium helps burn SHIB tokens, reducing the overall supply and potentially increasing the value of the remaining tokens.
Apart from the surge in transaction volume, Shibarium also saw an increase in user engagement, with the number of active accounts on the network rising from 798 to 836 in the same week. While new account creation has slightly declined, existing users are actively engaging with the network, driving its growth.
As for the price movement of Shiba Inu, the cryptocurrency market has been closely monitoring it ever since a downtrend began on June 5. Despite a 3.20% decline in the last 24 hours, with Shiba Inu trading around $0.00001998, there is a glimmer of hope for investors. However, various metrics suggest a cautious outlook for the token.
Shiba Inu has experienced a steady decline since early June, losing approximately 21% of its value. Although there was a slight upward movement in the latest session, the token still trades within a narrow range, indicating a period of consolidation. The Relative Strength Index (RSI) currently stands at around 34, suggesting oversold conditions, but the trend remains bearish, indicating continued downward pressure on Shiba Inu.
In addition to price movements, the network activity of Shiba Inu has also shown a decline, with daily active addresses dropping significantly. From a range of 6,000-7,000 in mid-June, active addresses have now decreased to approximately 2,500. This decline points towards reduced network activity and user engagement, which is typically seen as a bearish signal for a cryptocurrency.
A robust number of active addresses usually indicates strong user interest and participation, supporting price stability or growth. The current low level of activity raises concerns about the potential for a sustained recovery without an increase in user participation.