Shibarium Fee Hike Hits 1,036% as SHIB Becomes Deflationary

Shibarium, the backbone of Shiba Inu's blockchain, has recorded a 1,036% jump in transaction fees, underscoring a dramatic increase in the network's

Shibarium, the Layer-2 blockchain solution for Shiba Inu, has seen a 1,036% increase in average transaction fees, according to data from Shibariumscan. This dramatic rise in fees underscores a significant uptick in the network's utilization, which may be partly attributable to the recent launch of Shiba Inu-specific applications.

As a refresher, each transaction on the Shibarium blockchain incurs a fee payable in BONE, the native token of Shiba Inu. Now, the average transaction fee has risen from 0.012 to 0.1168 BONE, a substantial increase of over 10 times the previous rate.

Shiba Inu (SHIB) Becomes Deflationary: Burn Rate Surges

This development comes amidst efforts to render SHIB deflationary. A small percentage of each transaction fee is automatically minted and sent to a burn wallet, effectively reducing the circulating supply of SHIB.

Higher transaction fees on Shibarium indicate increased network usage, but they also raise questions about the actual cost of utilizing Shibarium.

Shiba Inu Applications May Be Boosting Transaction Fees

According to U.Today, the recent introduction of Shiba Inu-specific applications, such as pumpfun and sunpump, may be contributing to this surge in transaction fees on Shibarium. These applications essentially allow users to list a meme coin, and if it gains sufficient liquidity to meet the bonding curve, it will be listed on other decentralized exchanges.

Shibarium and BONE serve as the backend systems for this recently launched platform, which aims to facilitate "fair launches" of new assets on decentralized exchanges.

'Fair Launch' Hype May Further Boost BONE Demand

This development could generate even more demand for BONE, especially considering the "fair launch" platform buzz. However, it's crucial to remember that, as we witnessed with pumpfun, the assets being deployed in this manner are unlikely to be of a quality that warrants investment.

Despite BONE being a somewhat established asset within the Shiba Inu ecosystem, it's probably not wise to be investing BONE in some of these dubious cryptocurrencies that lack fundamentals.

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