Shibarium network, a Layer-2 blockchain solution for the Shiba Inu ecosystem, is grappling with a significant uptick in transaction fees. In the past 24 hours, a notable 267% increase hit users on the network trying to transact.
Understanding the Surge in Shiba Inu Transaction Fees
According to Shibariumscan data, a substantial rise in gas commissions paid in Bone ShibaSwap (BONE) occurred within 24 hours. BONE, one of the native tokens in the Shiba Inu ecosystem, surged from 11.57 BONE to 30.98 BONE within this timeframe. This is still less than the 500% surge experienced at the beginning of May.
Several factors may be responsible for the significant uptick. The surge in transaction fees is likely due to a spike in network activity. The increased network activity might be fueled by increased interest in Shiba Inu tokens amidst recent market fluctuations.
As investors rushed to seize opportunities within the ecosystem, transaction volumes on the Shibarium network surged, leading to increased fees. Regardless of the factors responsible, community members are paying more in token transaction fees.
Implications for the Shiba Inu Community
BONE, the currency of the network, aside from its role in covering transaction fees plays other vital roles. Notably, each BONE transaction contributes to the burning of SHIB tokens. Additionally, a percentage of the BONE transaction fee is converted into SHIB tokens. These are then sent to the dead wallet, serving to reduce the total token supply and maintain scarcity.
The spike in transaction fees significantly concerns users and investors alike, on the future trajectory of Shiba Inu’s network and its associated tokens.
Investors are left wondering whether this surge in fees signifies sustained growth in activity within the Shiba Inu ecosystem. Community members are keen to know how Shibarium intends to address the escalating demand while ensuring continued efficiency and scalability.
Notably, against the backdrop of broader market uncertainties, particularly with prevailing bearish sentiments, investors are closely monitoring the implications for SHIB and BONE.