- Dwindling Shibarium L2 transactions take a toll on Shiba cryptoโs price.
- Shibariumโs on-chain action & average BONE fees plummet drastically.
- Shiba crypto nears a resistance level containing over 70% of circulation.
Shiba Inu (SHIB) is underperforming this week compared to its smaller meme coin peers. The rising competition between mid-cap meme currencies and larger counterparts like Dogecoin (DOGE) and SHIB diverts tradersโ attention to more speculative assets, promising higher returns.
Shibarium Stumbles Upon a Roadblock
To illustrate the shifting momentum, the SPX6900 (SPX) meme coin grew by 236% over the past seven days, while newcomer Neiro CTO (NEIRO) bagged 80% and Solanaโs POPCAT crypto inked 51.5% in the same timeframe.
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As SHIB and DOGE kept their bullish outbursts in single digits, a concerning trend emerged on Shibarium, Shiba Inuโs Layer-2 blockchain. Once soaring with millions of transactions per day, Shibariumโs usage has dried off significantly.
One key metric to reveal this is the average transaction fee on Shibariumโs Layer-2 chain. Employing Bone ShibaSwap (BONE) as the official gas fee token, this pivotal metric dropped over 90% from last monthโs peak at 0.062 BONE. The average transaction fee is less than 0.005 BONE tokens per transaction.
While this makes the transactions on Shiba cryptoโs blockchain cheaper, it imposes extra challenges for Shibarium Layer-2’s growth. Particularly, the cumulative fees derived from Shibarium transactions are used to burn SHIB tokens, as the BONE token gets swapped for Shiba crypto and then burned on-chain.
SHIB & BONE to Break Resistance?
Despite blockchain dwellers temporarily deserting Shiba Inuโs chain, the second-largest meme coin appears to have found its footing at the $0.00001680 support level. Not trading below this price range since October 4, SHIB is seeking a northbound breakout towards $0.000029, according to crypto analyst Jonathan Carter. As Shiba Inuโs price has bounced off the 100 Moving Average (MA), the charting expert expects an eventual breakout from the descending price channel.
As for Bone ShibaSwap, the Shibarium gas fee tokenโs price trajectory highly relies on the use within Shiba cryptoโs Layer-2 blockchain. Currently trading below the $0.40 resistance line, BONE is capped at 250 million tokens, considerably more scarce than Shiba Inuโs 589T tokens.
The hefty resistance would, in theory, kick in at $0.43 to $0.62, where 8.9K crypto addresses hold a whopping 69.23M BONE tokens. As only 21% of current BONE holders are making a profit, this price range could apply extra sell pressure as more traders attempt to break even with an average buy price of $0.54.
For SHIB, the confluent resistance from $0.000018 to $0.000019 presents a gigantic challenge of 421.59T tokens, up to 71% of the total circulating supply. With 52% of SHIB custodians at a profit, this could soften the blow if SHIB gets stuck in this historically sensitive resistance level.
On the Flipside
- The dried-up trading activity on Shibarium L2 could return, given that Shibarium maintains stable liquidity.
- Shibariumโs total value locked (TVL) is back at $3.37 million, a benchmark unseen since Shiba cryptoโs triple-digit rally in March 2024.
Why This Matters
Shiba tokens stand out from the regular meme coin crowd due to them having distinct utility cases and an intention to eliminate the overminted supply based on their blockchain usage.
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