Shiba Inu Layer-2 network Shibarium achieved significant success in late 2023, passing several milestones in the process. However, the network is experiencing a cooling-off period after a significant drop in the number of transactions. Shiba Inu (SHIB) also seems to be affected by this development after a significant decline in its price.
Nearly 50% drop in daily transactions on Shibarium
Data from Shiberium Explorer shows that daily transactions on the network have declined significantly since the start of the new year. Just over 4 million transactions were processed on both January 2 and 3. This decline is notable as Shibarium was averaging over 7 million transactions in December last year.
December 29 was the last time Shibarium saw more than 7 million daily transactions. Since then, it has been on a downward slope, and fell to 6 million and 5 million on December 30 and 31, respectively.
It seemed like things were back on track as daily transactions on the network increased to over 6 million on January 1. However, this was not the case, as the downward trend continued the next day.
The number of daily transactions on the layer-2 network has become more significant as Shibarium’s role in SHIB’s growth became apparent. The Shibarium team has committed to converting some of the transaction fees made from the network into SHIB and burning those tokens. Thus, more transactions on the network lead to more SHIB burn.
These SHIB burns have the potential to have a positive impact on the price of SHIB as the value of the crypto token is likely to increase as more of it is taken out of circulation. To date, over 410 trillion SHIB have been sent to Shiba Inu’s burn wallet, with Shibarium contributing a large portion of that figure.
SHIB Price $0.000009 | Source: SHIBUSD on tradingview.com
More attention to bone than Shiba Inu?
Meanwhile, recent developments suggest that the Shiba Inu team is looking to increase the utility of BONE. For quite some time now, SHIB token has been the center of attention in the Shiba Inu ecosystem. However, the BONE token seems to be joining the mix as Shiba Inu’s marketing lead Lucy has recently turned her attention to promoting Dogecoin.
In an BONE, which was initially created as the native token for ShibaSwap, has been enjoying greater utility since Shibarium launched.
BONE is the gas token for the layer-2 network. Notably, the increase in BONE price may also affect SHIB burns as the team gets a chance to acquire and burn more meme coin.
At the time of writing, SHIB is trading at around $0.000009574, down more than 9% over the past 24 hours, according to CoinMarketCap data.
Featured image from Watcher Guru, chart from tradingview.com
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