Bitrabo Editorial
Shiba Inu (SHIB) has faced a notable decrease in its value compared to other cryptocurrencies, with a 7.26% drop over the past week and an additional 2.58% in the last 24 hours. This decline is starkly contrasted by Dogecoin’s 12% rise during the same period.
Concerns have been raised as Shibarium, the L2 blockchain tied to Shiba Inu, has witnessed a decrease in user engagement, transaction volume, and other critical metrics. This decline is believed to contribute to the lack of positive sentiment surrounding the token.
Shiba Inu’s Shibarium Metrics Downturn
Shibarium, built on the Ethereum blockchain, functions as Shiba Inu’s layer-2 solution to enhance scalability and the overall Shiba Inu crypto ecosystem. It has been closely linked to SHIB’s price movements, often causing significant fluctuations. However, recent data from Shibariumscan demonstrates a significant decline in activity, with active accounts dropping from 667 to just 113 within two days. The number of new transactions has also seen a sharp decline.
Signs of Concern?
The substantial decrease in user engagement and transaction activity on Shibarium raises concerns about the network’s vitality and its impact on SHIB’s market performance. This decline may indicate broader challenges within the Shiba Inu ecosystem, possibly affecting investor interest in meme coins and utility tokens.
Despite the slowdown, Shiba Inu boasts a strong community and could see increased activity with whale accumulations or updates from the team. Additionally, efforts to reduce SHIB’s circulating supply through increased burning activity could potentially boost its long-term value.
Currently, SHIB is valued at $0.00001744 after bouncing back from a support level of $0.00001710.