Shiba Inu’s Shibarium has suffered a heartbreaking decline in activity, dropping to new lows not seen in a long while. Reports reveal that the Layer 2 network has seen its daily transaction count plummet by over 96%, signaling a slowdown in user engagement and network usage.
Shiba Inu’s Shibarium Activity Crashes 98%
Shibarium, a prominent blockchain network designed to improve the Shiba Inu ecosystem, has been experiencing poor performance lately. Data from ShibariumScan reveals that the network’s daily transactions have collapsed to 52,410, marking a sharp and drastic shift in user engagement.
Notably, transactions were up to 151,090. However, in the past 24 hours, Shibarium has clearly taken another hit, dropping more than 60% from the initial value. Additionally, on February 14, Shibarium Scan recorded an increase in daily transactions, rising as much as 4.77 million. In just a week, this lofty figure has crashed to heartbreaking lows, reflecting market uncertainty and declining interest in the ecosystem.
The sharp drop in Shibarium’s daily transactions also suggests that users may be losing confidence in the network’s ability to sustain high activity levels, especially in volatile markets. Notably, this massive crash comes amidst a broader market downturn and volatility.
Recently, the market crashed severely following Bitcoin’s decline below the $100,000 threshold. Following BTC’s downtrend, major meme coins, including Shiba Inu, plummeted, with its price dropping from previous highs above $0.00002 to $0.000015 currently.
Given that Bitcoin has failed to break past the bearish trend and reclaim its previous position above $100,000, other altcoins and meme coins seem to be experiencing a similar restriction in their momentum. While this less-than-optimistic market environment has not been ideal for Shibarium’s growth, its overall transaction count is still rising, albeit slowly. It is also steadily approaching a key milestone, with it hitting a 1 billion transaction count.
Will The Shiba Inu Price Be Affected By Shibarium’s Crash?
Although the recent downturn in Shibarium transactions has raised questions and could impact the Shiba Inu ecosystem, it’s still uncertain whether this drawdown will directly influence SHIB’s price action. Typically, when the Shibarium network is thriving and experiencing a surge in transactions, it helps to boost the meme coin’s utility and overall long-term sustainability and adoption.
However, with transaction volumes plummeting, this could significantly reduce burn rates — an activity that is aimed at decreasing the meme coin’s supply and driving price appreciation. Not only this, declining network engagement could exacerbate selling pressures, putting more burden on the already weak market.
As of this writing, the price of Shiba Inu is $0.000015, marking a 2.24% decrease in the last 24 hours, according to CoinMarketCap. The cryptocurrency has been in the red zone for the past few weeks, crashing by more than 23.9% in the last month.
Featured image from Adobe Stock, chart from Tradingview.com
