In an unexpected turn of events, average transaction fees on Shibarium, the layer-2 blockchain solution designed for Shiba Inu, have surged an unheard-of 300% within just 24 hours.
Based on Shibariumscan’s most recent data, the average spend per transaction in BONE, the indigenous currency of the Shiba Inu ecosystem, surged from 0.00452 BONE to 0.012 BONE, even if network activity dropped noticeably.
Shibarium Implements Token Burning
Shibarium’s main goal is to simplify Shiba Inu token transfers; BONE tokens cover transaction fees. Through a process called burning, a fraction of each transaction fee in BONE is converted to SHIB and sent to a dead wallet, so reducing the token supply.
This remarkable rise in transaction fees takes place against a declining Shibarium network activity. While the total transaction volume fell by 18.23%, nosediving from 4,363 to 3,566 over the previous 24 hours, the count of active accounts dropped by 11.4%, from 465 to 412.
The increase in transaction costs among declining network activity begs questions about the fundamental causes. Potential catalysts include both a rise in more significant transactions or more complex transaction dynamics, both of which could drive fee increases.
Especially in light of general market uncertainty, the urgent question currently centers on the trajectory of the network and its ability to meet growing demand while maintaining efficiency and scalability criteria.
Overcoming these obstacles will be absolutely essential to guarantee the network’s long-term growth.
