- Shibarium L2 hit nearly eight million daily transactions on December 4, 2023.
- The Layer-2’s ‘puppynet’ switches to Sepolia on December 15, 2023.
- Shiba Inu (SHIB) consolidates around $0.000009 with one breakout scenario.
Yesterday, the crypto community was shocked to witness a parabolic rise in the transaction count of Shibarium, the Layer-2 blockchain by Shiba Inu (SHIB). In a message on X, Shibarium developer Kaal Dhairya shared his notes regarding the milestone.
He debunked several myths concerning the recent surge. Firstly, Dhairya assured us that these are not spam transactions but are related to Shibarium Puppynet’s upcoming shift from the Goerli Network to the Sepolia Network on Ethereum PoS.
Dhairya pinpointed a 1000% increase in accumulated transaction fees on-chain, which led to a burn of 8.2 billion SHIB tokens in a single transaction. Dhairya also implies that “complex operations were less than a dime” and didn’t take up more than 60% of the total Shibarium Layer-2 server capacity at any moment.
How Puppynet’s Move to Sepolia Affects SHIB
While Shibarium’s mainnet handled the magnitude of soaring developer and trader activity on the network with no hiccups and kept at a five-second average block production time, the ‘Puppynet,’ a predecessor to the public mainnet, requires a transition into the more advanced Sepolia Network on Ethereum L1.
Starting December 15, 2023, the Goerli Network will be discontinued for Puppynet, and will continue to work on the Sepolia Network. Builders on Shibarium L2 can test dApps on the newly built testnet, which provides a “more controlled and stable testing environment, closely mirroring the features and capabilities of the Ethereum mainnet,” according to Shibarium developers.
From a trader’s perspective, the transition to Sepolia Network estimates a better SHIB burning rate with the new auto-burning mechanism slated for a January 2024 release. According to a blog message, the daily burn rate will mainly depend on the “network adoption rate and success.”
To illustrate, the Shibarium developer team burned 8.2B SHIB tokens in one go, following the 50,000 Bone ShibaSwap (BONE) gas fee token accumulation. The fees were gathered amid the impressive 7.8 million transaction milestone set on December 4, 2023. While pivotal for a breakout, Shiba Inu’s chances of a bullish crossover also heavily depend on traders attempting to break even at the $0.000009 consolidation territory.
On the Flipside
- Dhairya also noted that SRC-20 tokens on Shibarium are relatively new and require more research and guidelines from the Shibarium team.
- Shibarium’s gas fee token Bone ShibaSwap (BONE) slumped by 5.5% in the last 24 hours to trade at $0.73, 13 cents above the yearly bottom reached on November 25, 2023.
Why This Matters
Layer-2 blockchains offer developers various building choices and faster, more cost-effective transactions for crypto traders.
Discover DailyCoin’s trending crypto news:
3 U.S. Presidential Candidates Set to Attend Crypto Forum
Crypto Funds Hit 10-Week Inflow Streak on Continued ETF Hope