Shibarium Eyes Abnormal 540% Increase in Shiba Inu Token Gas Fees

Shibarium has witnessed a dramatic 540% increase in gas fees for Shiba Inu tokens, coupled with a significant drop in transaction numbers and total value locked （TVL）, raising concerns about network activity and community interest.

Points

• Shibarium gas fees for Shiba Inu tokens surged by 540%.
• The number of daily transactions decreased significantly.
• TVL for Shibarium also saw a notable decline.
• The drop in trading activity suggests waning community interest.

Surge in Gas Fees and Decline in Transactions

Shibarium has experienced a significant 540% increase in gas fees for Shiba Inu tokens.

This spike in gas fees comes amidst a notable decline in network activity. The number of daily transactions on Shibarium decreased significantly, from 7,409 daily transactions on July 5 to just 3,400 in the last 24 hours.

Source: Shibariumscan

Decline in Total Value Locked （TVL）

The total value locked （TVL） in Shibarium has also seen a significant drop. The TVL metric represents the total value of all assets locked in a blockchain’s smart contracts and is a key indicator of the network’s overall health and adoption. Currently, the TVL for Shibarium stands at $1.57 million, down from $3.79 million recorded at the end of March.

Source: DefiLlama

Community Concerns

The sharp increase in gas fees and the decline in transaction numbers and TVL suggest waning interest from the Shiba Inu community. These trends raise concerns about the network’s sustainability and long-term viability.

Explanation

• Gas Fee Surge: The 540% increase in gas fees could deter users from making transactions, contributing to the decline in activity.
• Transaction Decline: Fewer daily transactions indicate reduced user engagement and participation on the Shibarium network.
• TVL Drop: A significant drop in TVL reflects a decrease in the value and volume of assets being used within the network, indicating lower confidence and interest among users.
• Community Impact: These trends collectively point to a potential erosion of community support and interest, which is crucial for the network’s growth and sustainability.