Shibarium, the Layer 2 network of the Shiba Inu cryptocurrency (SHIB), has witnessed a significant surge in transaction activity.
According to data from the Shibarium explorer, transaction counts escalated from less than 6,000 on April 10 to an impressive 288,690 at the time of writing.
This increase indicates a growing adoption among SHIB users seeking to overcome challenges such as lower throughput.
However, despite this recent surge, the transaction volume is still considerably lower than historical highs noted on March 16, when it exceeded 1 million transactions, as observed by AMBCrypto.
Simultaneously, the broader cryptocurrency market experienced a downturn, affecting SHIB’s value.
Currently, SHIB’s price stands at $0.000024, marking a 10.60% decline over the past 24 hours.
BONE ShibaSwap, the governance token of the Shibarium ecosystem, also experienced a downturn, trading at $0.63—a 9.73% drop within the same period.
Despite the overall market slump, there is speculation about whether Shibarium could bolster SHIB’s price.
Historical data from March 16 shows a significant price increase eight days following a peak in transaction volume.
However, with the current transaction count four times lower than during that period, expectations for a similar price rally remain cautious.
Other metrics, however, suggest potential upward movement for SHIB.
The number of active addresses in the last 24 hours has risen, nearing 6,000 compared to less than 5,000 a few days earlier.
This uptick in active addresses indicates increased interest in the token, which could potentially drive up its price.
This optimistic view is echoed in the market sentiment as well.
The Weighted Sentiment, which gauges the tone of comments about the project, was positive at the time of reporting.
This positive sentiment reflects a general confidence among market participants about a possible recovery in SHIB’s price.
However, realistic expectations are essential. Unless there is a significant increase in demand for SHIB, the transaction boost in Shibarium might not be sufficient to counteract the recent price decline.
Nonetheless, if the rise in active addresses leads to increased buying pressure, there’s a chance SHIB could recover from its recent low points.
This scenario hinges on the cryptocurrency community’s response and broader market dynamics.
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