Here’s Why Shibarium’s New Updates Can Aid SHIB’s Bullish Momentum

Here’s Why Shibarium’s New Updates Can Aid SHIB’s Bullish Momentum

Key Insights

  • Shibarium is experiencing a surge in demand and activity.
  • This surge is driven by low transaction fees on the network, due to the falling value of BONE.
  • Shibarium has hit a new high in terms of transactions and users over the past month.
  • BONE has lost more than 98% of its value since its all-time high, but it has found support around $0.6
  • BONE may see a 167% price explosion to $1.62 soon, depending on…

Shibarium, was in the news a lot for a time until it stopped making headlines.

However, the Shiba Inu L2 Network is back this time around, with fresh new milestones.

According to Shibarium Scan, several on-chain metrics have shown upticks in Shibarium demand and activity over the past few days.

Let's see what the reasons for these upticks on Shibarium, and what is going on with BONE, the network's native cryptocurrency.

Shibarium Metrics Spike, And Here's What It Means

According to data from Shibariumscan, Shibarium statistics have recently exploded over the last few days.

In particular, the network has now hit a new high in terms of transactions and users over the last month.

Shibarium's transaction highs | Source: <a href='https://www.shibariumscan.io/stats' target='_blank' rel='noreferrer noopener'><u>Shibariumscan</u></a>
Shibarium's transaction highs | Source: Shibariumscan

This week, even, on 23rd November, Shibarium recorded a daily high of 43,694 transactions as shown above.

This transaction count is the highest that Shibarium has recorded since the 62,000 transactions recorded on 25th October.

Shibarium's transaction growth
Shibarium's transaction growth

Not only that. The number of transactions recorded so far on Shibarium has also been on a tear since Shibarium's launch and now sits at nearly 4 million transactions processed so far.

But Why? Why The Sudden Surge?

There might have been an "unlikely" reason for why Shibarium metrics are surging, and it isn't something you might expect.

This reason may be $BONE.

BONE, the most popular cryptocurrency on Shibarium, for paying transaction fees. According to data from TradingView, BONE started the final quarter of the year on a bearish note and has remained so ever since.

BONE's price performance
BONE's price performance

In fact, Bone, According to CoinMarketCap, has lost more than 98% of its value since hitting an all-time high.

At the time of writing, BONE now trades at about $0.6118.

But How Is This Connected?

Think about it:

Lower prices on BONE mean that the transaction fees on Shibarium are negligible. In essence, customers now have a cheaper way to move money around, without having to worry about outrageous charges.

Interestingly, the previous peak in the number of transactions on Shibarium came in at 34,673 transactions on 21 November.

Shibarium's previous transaction high
Shibarium's previous transaction high

This was also the same day that Bitcoin got rejected from $38,000 for the second time and dragged the rest of the market down with it.

BONE's price decline
BONE's price decline

Bone declined that same day, by about 7% according to data from TradingView.

And as of this writing, the average fee to complete transactions on Shibarium strangely shows 0 BONE (or something close), worth a negligible amount in dollars.

How Is Bone Faring (In The Charts)?

Bone, in the charts, presents an interesting price scenario.

Aside from losing a massive amount of its original value in a series of back-and-forth movements above and below the $1 mark, BONE displays an impressive property.

BONE's triangle pattern
BONE's triangle pattern

After deathly price declines that span months, BONE always finds support around $0.6 and rallies right back up as shown above.

This series of back and forths has also created a descending triangle formation of sorts, leading us to believe that if $0.6 doesn't break this time around, we might see a 167% price explosion to $1.62.

Conversely, if we do see a price decline from $0.6, BONE will inevitably decline to $0.26.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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