Recent data from Shibariumscan reveals a significant surge in transaction fees within the Shibarium network, increasing by 493% over the past week. This surge is primarily attributed to heightened network activity driven by increased interest in Shiba Inu tokens amid recent market fluctuations. Transaction fees, denoted in BONE, the native token of the ecosystem, rose sharply from 16.22 BONE to 79.18 BONE.
The notable increase in fees correlates with a substantial uptick in transaction volumes, which surged by 278.5%, escalating from 5,865 to 16,337 transactions within the same seven-day period.
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Of significant relevance 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.
Source: Shibariumscan
Economically, the reduction in SHIB's supply due to burning can push up its price. This is because of the basic principles of supply and demand. When there is less supply and demand stays the same or goes up, prices go up too.
SHIB to USD by CoinMarketCap
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The recent rise in transaction fees shows how important Shibarium is for making the network more active. It also shows how much impact it can have on SHIB's market. As the ecosystem actively manages token economics through burning mechanisms, it may give long-term investors more confidence in SHIB's value proposition.
