Shibarium Transactions Slump as Adoption Wanes
The number of daily transactions on Shibarium, the Shiba Inu-backed Layer-2 scaling solution, has dropped to 5.69 million, down from the average of 7 million seen over the past month.
The decline in transaction trends on Shibarium has been consistent since the beginning of the year. On December 28, 2023, the figure stood at 7.84 million but fell sharply to 4.37 million by January 4. The reasons for this decrease in user activity are unknown.
Other network statistics also indicate a downward trend for Shibarium, similar to the overall slump in the cryptocurrency ecosystem. The current network utilization is at 27.51%, suggesting that the Layer-2 protocol has sufficient capacity to handle more transactions than it currently does.
Despite the decline, there is a glimmer of hope as the block time has improved from 5.3 seconds to 5.0 seconds, indicating that Shibarium may be getting faster.
Impact on Shiba Inu (SHIB) Price
The diminishing interest in Shibarium is affecting the price of Shiba Inu as a whole. Currently, the digital currency has dropped by 1.81% to $0.000009501, with bears dominating the market since the start of the year.
Shiba Inu experienced a decline from its highest price earlier this year at $0.00001089 to a low of $0.000009265. During this period, Internet Computer (ICP) briefly surpassed Shiba Inu in terms of market capitalization before Shiba Inu reclaimed its position.
Despite these setbacks, Shiba Inu remains an interesting memecoin to watch due to upcoming upgrades and innovations, including the mega Shiba Inu burning through the Shibarium burn portal and the impact of market whales. It is expected that Shiba Inu will recover its losses and gain momentum in the near future.
Hot Take: Shibarium’s Slump Raises Concerns for Shiba Inu
The decline in transaction count on Shibarium raises concerns about the adoption and usage of the Shiba Inu-backed Layer-2 scaling solution. This decrease in activity has also had an impact on the price of Shiba Inu, which has experienced a decline since the beginning of the year. While there are some positive signs, such as improved block time on Shibarium, it remains to be seen whether these developments can reverse the downward trend. The future of Shibarium and its impact on Shiba Inu’s price will be closely watched by investors and enthusiasts alike.
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