The Shibarium network has experienced a significant surge of 493% in transaction fees, leading to speculation about its potential impact on Shiba Inu’s SHIB token. This rise in fees is a reflection of the increased adoption and user interest in the network, particularly during recent market fluctuations.
Recent data from Shibariumscan reveals a remarkable 493% surge in transaction fees on the Shibarium network. These fees, measured in BONE (the network’s native token), have risen from 16.22 BONE to 79.18 BONE in the past seven days. This increase is consistent with the surge in transaction volumes, indicating a growing adoption of the network and heightened user interest.
Transaction volumes have also experienced a significant surge of 278.5%, jumping from 5,865 to 16,337 in recent days. This surge in interest and demand for BONE, driven by the popularity of Shibarium as a layer two scaling solution for the Shiba Inu ecosystem, could potentially impact the value of Shiba Inu’s SHIB token.
Shibarium’s burning mechanism plays a crucial role in this ecosystem. It allows a portion of the transaction cost, in the form of BONE, to be converted into SHIB tokens, which are then burned. This burning mechanism helps to decrease the circulating supply of SHIB tokens even as investor demand rises. In theory, this should have a positive impact on the token’s price.
As previously reported by Crypto News Flash, the Shiba Inu community has proposed a new burning mechanism on Binance and Coinbase, similar to the Terra Luna (LUNA) burning mechanism deployed on Binance. This new mechanism has the potential to burn billions of SHIB tokens.
Since the launch of the SHIB burn initiative, a staggering 410,727,033,632,704 tokens have been incinerated. However, the community has expressed concerns about the lack of significant price changes. Nevertheless, lead developer Shytoshi Kusama has acknowledged that while the burning mechanism is effective, the number of burnt tokens remains relatively low compared to the total supply in circulation.
In principle, the widely adopted burning mechanism in the cryptocurrency industry should enhance the scarcity and demand for tokens like SHIB. This could be a crucial factor in ensuring the success of SHIB, especially in the face of intense bearish pressure in recent weeks.
At the time of writing, SHIB is trading at $0.00001702, following a 6% decline in the past 24 hours. This has resulted in Memecoin extending its weekly losses to 16%.
Furthermore, this performance has led to TRON (TRX) flipping SHIB for the 12th position in the market rankings. This is a significant setback for Shiba Inu, which aims to join the elite top ten list alongside its main rival, Dogecoin (DOGE).
However, some market experts believe that SHIB has the potential to surpass DOGE before the end of the year. They base this prediction on SHIB’s 2024 price performance, the growing adoption and expansion of its ecosystem, and its dedicated, diverse, and active user and developer community.
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