According to U.Today, recent data from Shibariumscan indicates a significant increase in transaction fees within the Shibarium network. Over the past week, these fees have risen by 493%, a surge largely attributed to increased network activity. This heightened activity is driven by a growing interest in Shiba Inu tokens, particularly in light of recent market fluctuations. Transaction fees, which are denoted in BONE, the native token of the ecosystem, have sharply increased from 16.22 BONE to 79.18 BONE.
This notable increase in fees is in line with a substantial rise in transaction volumes, which have surged by 278.5%. The number of transactions has escalated from 5,865 to 16,337 within the same seven-day period. Of particular interest to SHIB holders is the mechanism through which these transaction fees contribute to the ecosystem. BONE, used to cover transaction costs on Shibarium, are partly converted into SHIB and then burned. This process effectively reduces the circulating supply of Shiba Inu tokens, potentially enhancing their scarcity and value proposition.
Economically, the reduction in SHIB's supply due to burning can push up its price. This is based on the basic principles of supply and demand. When there is less supply and demand remains the same or increases, prices tend to rise. The recent rise in transaction fees underscores the importance of Shibarium in activating the network. It also highlights the significant impact it can have on SHIB's market. As the ecosystem actively manages token economics through burning mechanisms, it may instill more confidence in SHIB's value proposition among long-term investors.
