Shibarium in Decline
Shiba Inu’s layer-2 blockchain solution, known as Shibarium, has been gaining attention in the crypto community for achieving various milestones in recent months. However, the network’s progress has stalled recently, with a significant decline in activity.
- Only 5,740 new blocks were processed on Shibarium on July 2, marking a nearly 70% drop from the previous day’s 17,214 blocks.
- Daily transactions on the network have also decreased from over 14,000 on June 30 to around 6,000 two days later, far from their peak in mid-April.
Shibarium’s Background
Shibarium was launched in August last year with the aim of enhancing Shiba Inu’s position in the meme coin sector by reducing transaction costs, improving speed, and scalability.
- The protocol underwent significant upgrades, including a new user interface to enhance compatibility with popular wallets like MetaMask, Coinbase Wallet, and Trust Wallet.
- Developers also introduced a hard fork to improve user experience and implement quicker block processing times, aiming to empower the community.
SHIB’s Challenges
Another notable development for SHIB, the second-largest meme coin by market capitalization, is its burn rate, which has surged by over 8,500%. This increase may be attributed to investors liquidating their positions due to heightened price volatility and market uncertainty.
- SHIB has experienced a 1.3% decline in the past 24 hours and a 4% drop over the week, reflecting the broader trend of meme coins facing losses.
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