The layer-2 blockchain is seeing adoption as it recorded a 1,633% in the key on-chain metric.
Shiba Inu’s layer-2 solution, Shibarium, is currently experiencing an unprecedented level of growth. The platform has witnessed an incredible surge in new account creation, with a staggering 1,633% increase in a single day.
According to Shibarium’s website, on April 6, 780 new accounts joined the network, compared to just 45 the day prior. Additionally, active accounts have seen a remarkable rise of 48.7%, surging from 977 to 1,453 within the same period.
This explosion of online activity on Shibarium has ignited speculation about its potential impact on the Shiba Inu ecosystem, particularly its token dynamics. Recently, data from Arkham Intelligence has revealed that a whale pulled out $1.04 million worth of SHIB from Binance in a transfer to a wallet address labeled “0xB4FE28705a076aF670f1AC29c1Ba708b63cB8F51.”
The Shibarium key on-chain metric increase is truly an exciting time for the Shibarium community. However, despite the influx of new users, transactional activity on Shibarium hasn’t yet reached its previous heights. The network currently processes only 5,900 transactions daily, a significant drop from its peak of about seven million transactions per day towards the end of 2023.
Understanding Shibarium and its Potential Impact
Shibarium is a layer-2 blockchain specifically designed for the Shiba Inu ecosystem. The ecosystem includes the SHIB token, LEASH, BONE, and a decentralized exchange called ShibaSwap, allowing users to provide liquidity, stake, and swap tokens.
The Shiba Inu ecosystem uses the SHIB token for its transactions. SHIB is built on the Ethereum blockchain and leverages its smart contracts to facilitate DeFi activities.
BONE serves as the lifeblood of Shibarium’s governance. BONE holders can lock up their tokens to participate in the network’s validation process and earn rewards.
The Shiba Inu blockchain addresses limitations faced on the Ethereum network, such as high transaction fees and slow processing times. Besides, Shibarium has a feature that burns some Shiba Inu tokens, meaning fewer tokens are out there, and those left are worth more. This can incentivize more frequent use within the Shiba Inu ecosystem, potentially leading to a rise in transactional activity.
