Shiba Inu’s Shibarium, a Layer-2 scaling solution backed by the Shiba Inu cryptocurrency, is experiencing a decline in transaction activity, which may be a contributing factor to the fall in SHIB’s price.
Data from the Shibarium Explorer shows that daily transactions have dropped to 5.69 million, compared to an average of 7 million over the past month. This sustained weakness in transaction trends has been evident since the beginning of the year, with a significant drop from 7.84 million on December 28, 2023, to 4.37 million on January 4. The reasons for users shunning the protocol are unknown.
Furthermore, other network statistics also indicate a dampening outlook for Shibarium, similar to the overall slump in the digital currency ecosystem. The current network utilization is at 27.51%, indicating that the Layer-2 protocol has the capacity to handle more transactions than it currently is.
Despite the decline, there is a glimmer of hope for Shibarium as the current block time has decreased to 5.0 seconds, showing that the network is becoming faster. Currently, Shibarium has a total of 266,645,659 network transactions and 1,326,992 registered addresses on the Layer-2 network.
The decrease in user interest in Shibarium is also impacting the price of the Shiba Inu (SHIB) cryptocurrency. SHIB is currently down by 1.81% at $0.000009501, with bearish sentiment dominating since the beginning of the year. SHIB has experienced a decline from its previous high of $0.00001089 to a low of $0.000009265. However, there is optimism for SHIB’s future as the team has teased upcoming upgrades and innovations, including the mega Shiba Inu burning through the Shibarium burn portal and the potential impact of market whales.