Shibarium, the layer-2 scaling solution bootstrapped by Shiba Inu has recorded an uptick in activity over the past 24 hours. As per Shibariumscan, a key blockchain metric, the transaction volume surged from 5,150 to 7,930. This is a substantial 53.9% growth.
Impact on Network Fees and Token Burns
This growth figure is also packed with consequences for network fees. Notably, the spike in transaction volume caused a near-double rise in network fees. Users saw the number of BONE tokens, which are used for transaction fees on Shibarium, increase from 16.68 BONE to 32 BONE.
Based on the Shibarium’s transaction model, BONE tokens are partially converted into SHIB tokens, which are subsequently burned. This burning process reduces the circulating supply of Shiba Inu tokens, helping to boost the price value over time.
The community periodically checks its supply level with these burn activities. Recently, within a 24-hour period, a total of 29,484,000 SHIB was sent to inactive wallets, a remarkable burn rate of 127.57%. The burn rate is essential in rebooting the sentiment and outlook surrounding Shiba Inu.
Factors Driving the Shiba Inu Growth
The 60% growth is attributable to several factors including market volatility and new account generation. Investors’ interest was intensified by recent market volatility and this drove up transaction demand on Shibarium.
This increased activity is further highlighted by a 13.7% rise in active accounts on the network. This grew from 687 to 781. While new account creation saw a slight decline, the surge is seen as a fuel by the existing user base, indicating robust engagement from current users. Although significantly less than the 1,733% surge witnessed in the first week of May, it was enough to cause positive growth.
The combination of rising transaction volumes and the systematic reduction of SHIB tokens through burning is propelling the network’s growth and potential for future value appreciation. This dynamic is likely to keep SHIB supporters engaged and motivated to continue investing in the Shiba Inu network as they anticipate the $0.00006 price prediction.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of Crypto-Vanguard’s content as such. Crypto-Vanguard does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.