Shibarium Struggles with Adoption Following Launch
The Shibarium network, introduced by the Shiba Inu team in August 2023, has faced challenges in gaining traction among users in the crypto space. Unlike its parent blockchain, Ethereum, which is competing vigorously with other networks like Solana, Shibarium has struggled to maintain its user base. Additionally, Ethereum’s Layer 2 networks such as Base by Coinbase have attracted a significant number of DeFi users, overshadowing Shibarium’s presence.
As a result, the Shibarium network has experienced a decline in active accounts, indicating a lack of sustained interest from users. According to data from ShibariumScan, the number of active accounts stood at 667 at the beginning of the week, but this figure has plummeted since then.
Sharp Decline in Shibarium Network Activity
The decline in Shibarium’s active accounts has been drastic, with a notable drop of 80.3% within just four days. On Wednesday, the total active accounts on the network dwindled to a mere 131, showcasing the diminishing interest in the platform among users.
Furthermore, there has been a significant decrease in new transactions on the network, with numbers dropping from 6,353 on Sunday to 1,023 by Wednesday, marking an 84% decline. The number of new blocks mined also decreased by 66.6%, highlighting the waning engagement with the Shibarium network.
Comparison with Leading Ethereum Layer 2 Networks
Although the anticipation surrounding the launch of the Shibarium network was high due to the success of Shiba Inu, the platform has failed to match up to its competitors in the Ethereum Layer 2 space. Compared to other networks launched between 2023 and 2024, Shibarium lags behind in terms of user engagement and Total Value Locked (TVL).
Currently, Shibarium’s TVL stands at $1.5 million, a fraction of what networks like Base by Coinbase, Linea, and BLAST have achieved in the same timeframe. Base network boasts a TVL of $2.175 billion, Linea network has $1.198 billion, and BLAST network holds $1.47 billion in TVL, showcasing the significant difference in user activity and capital locked in these networks.
Future Prospects for Shibarium Network
The dismal performance of Shibarium in terms of user adoption and network activity raises questions about its future viability as a prominent DeFi player. With minimal usage and declining interest, it remains to be seen whether the Layer 2 network can overcome its current challenges and regain its position as a competitive platform in the decentralized finance space.
Despite its struggles, there is a possibility that Shibarium could stage a comeback and reestablish itself as a top contender in the DeFi ecosystem. However, the network will need to address its issues effectively and attract users back to its platform to compete with leading Ethereum Layer 2 networks.
Hot Take: Shibarium Network Faces Uphill Battle
As the Shibarium network grapples with a significant decline in active accounts and user engagement, the platform is facing an uphill battle to regain its position in the competitive crypto landscape. With larger Ethereum Layer 2 networks dominating the space and attracting a substantial user base, Shibarium must reassess its strategies and appeal to users to stay relevant in the evolving DeFi industry.
By
By
By
