Shiba Inu’s layer-2 solution Shibarium was launched in August 2023 and the network quickly began brimming with key activities. As the activity on the network expanded, transaction fees grew leading to SHIB burns. Bone is the gas token on Shibarium and a percentage of the transaction fee is collected to swap with Shiba Inu and initiate burns.
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Therefore, Shibarium is the only vehicle that officially sends a handful of SHIB tokens to the dead wallet. The development helps Shiba Inu to reduce its circulating supply and sustainably scale up in the charts. The network is the most important development in the SHIB ecosystem that charts a new path to the token.
However, the recent data sheds light that the key network activity in Shibarium has declined by 52%. This makes the transaction fee collected on the network also drop 52% simultaneously. If the transaction fee drops, it inadvertently reduces SHIB burns failing to contain its circulating supply of 549 trillion tokens.
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Data shows that in the last 24 hours, the total transaction fee collected on Shibarium down from 46.5 Bone to 22.33 Bone. That’s a sharp dip considering that Shibarium is among the busiest networks in the blockchain industry.
Since yesterday, the number of transactions on Shibarium dropped from 9,181 to 4,751. Additionally, the number of active users interacting on the network decreased from 1,077 to 616. This shows that Shibarium might be losing steam and needs more projects to be run on the network to maintain the activity.
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Shiba Inu: What Next After Shibarium Dips?
The dip in Shibarium activity can be considered a ‘one-off’ as it happened occasionally. However, if the trend continues, it could pose serious dangers to Shiba Inu’s price. The burn rates might come down leading to the token failing to contain its circulating supply. If SHIB needs to spike in price, then activity in Shibarium must always be brimming.