Shiba Inu’s Layer-2 Solution Shibarium Sees 450% Adoption Surge

• Shiba Inu’s Layer-2 blockchain, Shibarium, experienced a 450% surge in new accounts and a 23% increase in active accounts over the past 24 hours.
• Despite impressive gains of 17% over the past week, Shiba Inu’s daily trading volumes have dropped by 32%, while whale transactions involving at least $100,000 worth of SHIB have surged by 121%.

As per the data from Shibariumscan, Shiba Inu’s Layer-2 blockchain, Shibarium witnessed a 450% surge in new accounts over the past 24 hours. Moreover, the data shows that the number of new accounts per period under review reached the 27 mark, from 6 on the previous day. Besides, the total number of active accounts also surged 23% from 489 to 602, per the Crypto News flash report.

Also, the surge in new users coincided with the increase in the total amount of tokens paid as fees using Shiba Inu’s native token BONE. As a result, the transaction fees have increased from 19.31 BONE to 40.14 BONE. The BONE token is famously used as a gas fee for transactions on Shibarium with the portion of each fee converted to SHIB and burned. This reduces the overall supply for BONE thereby making the token deflationary.

Amid the surge in news accounts and higher transaction fees, the Shibarium network has simultaneously experienced a surge in activity. The number of transactions has surged to 4,319 daily, marking a 35.6% increase from the previous day.

This rise in activity suggests that new users may be joining to explore the platform or to hold BONE and SHIB tokens, thereby boosting the overall network. The renewed interest in Shibarium is likely due to the recent price action of Shiba Inu tokens.

Shiba Inu Trading Activity Drops After 17% Surge

Over the last week, Shiba Inu’s native crypto SHIB registered impressive gains of 17% amid the broader crypto market recovery. As of press time, the Shiba Inu price is trading flat with 0% gains at $0.00001931 and a market cap of $11.38 billion.

Although Shiba Inu has delivered a decent performance along with the broader market recovery, the daily trading volumes of SHIB are down 32% at press time, currently at $479 million.

According to Santiment, the number of whale transactions involving at least $100,000 worth of SHIB has surged by 121% in the past 24 hours, increasing from 81 to 179 unique transactions per day.

The decline in Shiba Inu’s overall trading volume, coupled with increased whale activity, suggests that the meme coin might experience high price volatility due to large whale movements and potential price manipulation, per the CNF update.

Data from the market intelligence platform shows that SHIB’s total open interest dropped from $59.6 million to $57.1 million over the past day. According to Santiment, the total amount of funding rates aggregated by Shiba Inu has plunged below zero, currently sitting at negative 0.003%.

At this point, short-position holders dominate long-position traders, expecting a price fall. An upward movement of over 5% could potentially trigger around $2.5 million in liquidations for Shiba Inu.

Notably, SHIB’s Relative Strength Index (RSI) is hovering at 61, indicating that the meme coin is slightly overbought. An RSI of 50 or lower could potentially put SHIB back in the bullish zone.