Bitrabo Editorial
The performance of Shibarium, the Layer 2 network associated with Shiba Inu, has faced significant scrutiny due to recent setbacks. Given the critical role the network plays in the growth of Shiba Inu (SHIB), this development has raised concerns within the SHIB community.
Significant Drop in Daily Transactions on Shibarium
Data from Shibariumscan indicates a drastic decline in daily transactions on Shibarium, plummeting by over 90% since reaching a peak of 121,000 transactions on April 19. On May 19, the network recorded just over 11,000 transactions, marking a consistent downward trend. The only instance of a daily transaction surpassing 20,000 this month was on May 3.
The downturn in Shibarium’s performance is troubling, especially considering the significant success the network enjoyed towards the end of last year. In December 2023, Shibarium averaged over 7 million transactions throughout most of the month. However, a decline set in at the beginning of this year, with daily transactions on Shibarium dropping by nearly 50%.
Despite Shiba Inu’s consistent performance, the decline in daily transactions on Shibarium has had a direct impact on the network’s ability to conduct SHIB burns. The reduction in transaction fees earned has resulted in a significant drop in SHIB burn rates compared to the peak success period, hindering the network’s burn activities.
Shiba Inu Continues to Thrive Despite Shibarium’s Setback
Despite the underperformance of Shibarium, Shiba Inu has witnessed substantial price gains since the beginning of the year. With a year-to-date gain of over 131%, Shiba Inu remains one of the best-performing cryptocurrencies in its category. The consistent growth of Shiba Inu can be attributed to its strong fundamentals and continuous efforts by the team to enhance the ecosystem.
Additionally, Shiba Inu has benefitted from the meme coin narrative, positioning itself as a prominent player within this sector. Technical analysis experts have also provided an optimistic outlook for Shiba Inu, forecasting a new all-time high in the current market cycle.
While Shiba Inu is expected to sustain its upward trajectory during this bullish phase, an upswing in Shibarium’s daily transactions could further boost the momentum for the second-largest meme coin by market capitalization.