As a researcher with a background in blockchain technology and crypto markets, I find Shibarium’s recent decline in daily transactions to be a concerning development, given its significant role in the growth of Shiba Inu (SHIB). Having closely followed the SHIB ecosystem for some time, I’ve seen firsthand how integral Shibarium’s success was to the meme coin’s surge late last year.
As an analyst, I’ve noticed that Shibarium, the Layer 2 solution developed by the Shiba Inu team, has recently drawn significant attention due to its performance changes. Given the crucial role this network plays in the growth of Shiba Inu (SHIB), it’s understandable that this development has raised concerns within the SHIB community.
Shibarium’s Daily Transactions Declines By Over 90%
The number of transactions on Shibarium’s layer-2 network, as indicated by data from Shibariumscan, has dropped significantly since reaching a peak of approximately 121,000 transactions on April 19. By contrast, the network saw only around 11,000 daily transactions on May 19. This decline in transaction volume has persisted for some time now, with May 3 being the sole exception, when the network processed more than 20,000 transactions that month.
The downturn in Shibarium’s performance is cause for concern, given its impressive achievement of handling over 7 million transactions per day on average towards the end of last year in December 2023. Yet, since the beginning of this year, Shibarium has experienced a significant decrease in daily transactions, with numbers dropping by nearly half.
During Shibarium’s subpar performance, it is crucial not to disregard its significance to Shiba Inu’s expansion. Since its launch, the Shibarium team has pledged to utilize a portion of the transaction fees generated for SHIB token buybacks or burns. This initiative led to the elimination of approximately 33.8 billion SHIB tokens from circulation during December, when Shibarium experienced peak success.
As an analyst, I’ve noticed a downturn in the daily transaction volume on the Shibarium network recently, leading to a decrease in transaction fees generated. Consequently, the number of SHIB tokens burnt through network transactions has dropped significantly. This decline in burn rate is a cause for concern as it was much higher when Shibarium was experiencing high levels of activity.
Shiba Inu Has Continued To Shine Regardless
Although Shibarium, the associated platform of Shiba Inu, has struggled in the first part of the year, Shiba Inu itself has achieved substantial price advancements. This popular meme coin boasts a remarkable year-to-date (YTD) increase exceeding 131%. Shiba Inu ranks among the most successful crypto assets in terms of growth during this period. The primary reason for its impressive performance lies within its fundamentals, as the dedicated team behind Shiba Inu continues to put effort into enhancing and expanding the ecosystem.
Shiba Inu has significantly gained popularity due to the meme coin trend, which is expected to be a major theme during this bull market. According to cryptocurrency analysts, the price of Shiba Inu could reach a new peak in this market cycle based on technical analysis.
Shiba Inu’s bull run is far from over, and it’s likely that its price will continue to rise. However, a significant boost in transaction volume on Shibarium, the Shiba Inu Layer 2 solution, could add even more fuel to the coin’s price surge.
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2024-05-21 00:11