Shibarium Network Witnesses Significant Drop in Daily Transactions
Shibarium, an Ethereum Layer 2 network developed by the Shiba Inu team, has experienced a major setback with a significant decline in the number of daily transactions on the network. This decline has brought the daily transaction count to its lowest level in months.
Rise and Fall of Shibarium Daily Transactions
The Shibarium network had been witnessing a surge in adoption towards the end of 2023 and into the new year of 2024. The number of daily transactions on the network rose rapidly, surpassing 7 million in December 2023. Even as usage began to decrease in the new year, the Ethereum Layer 2 network managed to maintain an average of around 1 million transactions per day.
However, the network is currently facing a challenging period characterized by a sharp drop in daily transactions. On March 10, the daily transaction figures fell below 1 million for the first time this year, reaching 800,000. Although there was a temporary recovery in the following days, surpassing 1 million transactions again, a larger crash was imminent. On March 16, daily transactions fell below 600,000 for the first time since November 2023.
This downward trend continued, and on Wednesday, March 30, the total daily transaction count on the Shibarium network plummeted to just 9,330. This marks the lowest level of daily transactions in four months.
Shiba Inu Price Decline Impact
The decline in Shiba Inu’s price over the past few days can be attributed to the overall Bitcoin crash that has affected the entire cryptocurrency market. As Bitcoin’s price dropped from $73,000 to below $61,000 within a short period of time, altcoins like Shiba Inu also suffered significant losses.
Investors have been cautious and hesitant to make further investments as they wait for prices to recover. This cautious approach could explain the drastic drop in daily transactions on the Shibarium network, as crypto users adopt a wait-and-see attitude.
If the price of Shiba Inu and other cryptocurrencies recovers, it is likely to trigger a new wave of adoption for the Shibarium network. However, competition in the blockchain space is fierce, with platforms like Solana challenging Ethereum’s position as the leading blockchain with the most active users.
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