Shibarium Sees Drop: Impact on Shiba Inu’s Value
Recent data reveals a notable downturn in transaction activity within Shibarium, the network bolstered by Shiba Inu, indicating a declining trend in user engagement.
Transaction levels on Shibarium have notably dwindled, standing at 5.69 million transactions per day, marking a sharp decrease from the typical monthly average of 7 million.
This decline in transactional volume has been consistent since the beginning of the year, initially hovering at 7.84 million on December 28, 2023, but plummeting to 4.37 million by January 4. The reasons behind this rapid decline in user involvement with the protocol remain unclear.
Various network metrics paint a concerning picture for Shibarium’s performance, mirroring the broader challenges faced by digital currencies. The network utilization currently stands at 27.51%, suggesting an underutilization of the Layer-2 protocol’s capacity for handling transactions.
According to Shibarium’s data, approximately 2,519,822 blocks have been produced so far, with the current block time reduced to 5.0 seconds from its previous 5.3 seconds a week earlier. Despite the decline, this shortened block time could indicate potential enhancements in the speed of transactions within Shibarium.
The network reports a total of 266,645,659 transactions and hosts 1,326,992 addresses on its layer-2 platform.
This downward trend in Shibarium’s user engagement appears to have implications for the broader performance of Shiba Inu. The digital currency has seen a decline of 1.81% to $0.000009501, suggesting a prevailing bearish sentiment since the year’s commencement.
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Shiba Inu witnessed a drop from its earlier peak of $0.00001089 to a low of $0.000009265 during this period. At one point, Internet Computer (ICP) briefly overshadowed Shiba Inu in terms of market capitalization before Shiba Inu regained its position.
Despite these challenges, Shiba Inu remains a notable memecoin to watch, particularly due to anticipated upgrades and innovations hinted at by its development team. With significant burns facilitated through the Shibarium burn portal and the influence of major market participants, Shiba Inu may potentially recover its losses, indicating possible upward movement in the near future.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
