Shiba Inu’s Shibarium Loses Steam, Is This the Reason Behind SHIB’s Fall?

The Shiba Inu-supported Layer-2 scaling solution, Shibarium, is experiencing a decline in transaction counts, signaling reduced adoption on the network.

Shibarium Transactions Trend Change

According to data from the Shibarium Explorer, daily transactions are now pegged at 5.69 million, down from the general average of 7 million over the past month.

The data shows a sustained weakness in the Shibarium transaction trends from the start of the year. The figure was pegged at 7.84 million as of December 28, 2023, and it fell drastically to 4.37 million as of January 4 to show how well-dedicated users are shunning the protocol for reasons not known.

Other network statistics also show a dampening outlook on Shibarium, reminiscent of the ongoing slump in the broader digital currency ecosystem. The Shibarium explorer pegs the current network utilization at 27.51%, a figure that shows the Layer-2 protocol still has enough bandwidth to host more transactions than it currently is doing at this time.

Per the Shibarium data, the total blocks produced thus far is 2,519,822 with the current block time coming in at 5.0 seconds, down from the 5.3 seconds recorded about a week ago. Amid the fall, this block time gives a glimmer of hope that Shibarium is actually getting faster. 

Shibarium’s total network transactions come in at 266,645,659 and the registered addresses on the layer-2 network are pegged at 1,326,992. 

Impact on Shiba Inu (SHIB) Price

The waning interest among users of Shibarium is showing up on Shiba Inu as a whole. At the time of writing, the digital currency is down by 1.81% to $0.000009501, as bears appear to be in total control since the start of the year.

Shiba Inu slipped from its highest price point attained earlier in the year pegged at $0.00001089 to a low of $0.000009265. Within this time, Internet Computer (ICP) temporarily outranked the memecoin in terms of market capitalization, before it regained its lost position.

Shiba Inu remains a memecoin to watch out for especially with the lined-up upgrades and innovations as teased by the team. From the mega Shiba Inu burning through the Shibarium burn portal to the impact of market whales, Shiba Inu is bound to recoup all lost losses including one zero in the near term.