- New transactions on Shibarium have risen to a monthly high.
- This happened amid a continued decline in BONE’s value.
New demand for Shiba Inus [SHIB] Layer 2 (L2) network Shibarium rose to its highest level over the past month, as the protocol recorded a daily high of 44,000 transactions on November 23, according to data from Shibarium scan.
The daily number of addresses transacting for the first time on Shibarium started an upward trend on November 20 and has increased by more than 390% since then.
Source: Shibarium scan
The rising demand for the L2 network is also reflected in transaction volume, which continues to rise daily. On November 21, the number of transactions reached 35,000. This was the highest daily peak for Shibarium since the 62,000 transactions recorded on October 25.
A bone to pick?
The recent increase in demand for Shibarium in recent days can be attributed to the consistent decline in the value of BONE, the token used to pay transaction fees on the protocol.
AMBCrypto found that average transaction fees plummeted to a low 0f 0 BONE on November 21, while the token’s value continued to decline.
According to data from Shibariumscan, the last time Shibarium saw its average transaction fees at such a low level was on October 16.
Source: Shibarium scan
At the time of writing, the average cost to complete transactions on the L2 network was 0.01 BONE, worth approximately $0.0006.
BONE was trading at $0.6155 at the time of writing and has lost 21% of its value over the past month, according to data from CoinMarketCap.
While the rest of the market witnessed a significant increase in demand in October, driving their key momentum indicators to new highs, BONE’s trading lows fell. Activity during the period kept the Relative Strength Index (RSI) and Money Flow Index (MFI) below their respective center lines.
At the time of writing, BONE’s RSI and MFI were still declining, at 37.55 and 38.45 respectively. These values showed that meme coin spot market sales activity continued to gain momentum.
Read Shiba Inus [SHIB] Price prediction 2023-24
Furthermore, the construction of BONE’s Directional Movement Index (DMI) confirmed that bears were in control of the daily market.
The negative directional index (red) of 21.94 was above the positive (green) index of 13.32. This suggested that the continued downward price movement was stronger than the possibility of a short-term upward trend.
Source: BONE/USDT on TradingView
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