Shibarium, the Layer-2 scaling solution backed by the Shiba Inu community, is experiencing a decline in transaction volume, indicating a slowdown in network adoption. Data from the Shibarium Explorer reveals that daily transactions have dropped to 5.69 million, down from the previous average of 7 million over the past month.
The sustained decline in Shibarium transaction trends is evident from figures dating back to the start of the year. On December 28, 2023, the daily transactions amounted to 7.84 million, but this number plummeted to 4.37 million by January 4. The reasons behind this decline are not immediately clear, underscoring the need for a closer evaluation of user behavior and network utilization.
In addition to transaction volume, other network statistics also paint a subdued picture for Shibarium, signaling a broader trend seen in the digital currency ecosystem. The current network utilization stands at 27.51%, indicating that the Layer-2 protocol has ample capacity to accommodate more transactions than it currently supports.
Despite the decline in transaction volume, there is a glimmer of hope for Shibarium’s speed, as evidenced by a decrease in block time from 5.3 seconds to the current 5.0 seconds. The total number of blocks produced thus far is 2,519,822, with total network transactions reaching 266,645,659 and registered addresses on the layer-2 network totaling 1,326,992.
The impact of the waning interest in Shibarium is also reflected in the price of Shiba Inu (SHIB), which has seen a 1.81% decrease, trading at $0.000009501 at the time of writing. This decline comes after Shiba Inu reached a high of $0.00001089 earlier in the year before dropping to a low of $0.000009265. Notably, Internet Computer (ICP) briefly surpassed Shiba Inu in terms of market capitalization during this period.
However, despite the current market conditions, Shiba Inu remains an important memecoin to monitor, especially in light of anticipated upgrades and innovations teased by the team. From the significant Shiba Inu burning through the Shibarium burn portal to the impact of market whales, there is optimism that Shiba Inu will recover lost ground, including reaching one additional zero in the near term. As the crypto industry continues to evolve, understanding these trends and their implications is crucial for stakeholders in the space.
