Shiba Inu’s Shibarium Activity Crashes 98%, Will SHIB Price Be Affected?

Shibarium, a prominent blockchain network designed to improve the Shiba Inu ecosystem, has been experiencing poor performance lately.

Shiba Inu’s Shibarium Activity Crashes 98%

Shiba Inu’s Shibarium, a Layer 2 blockchain network, has seen its daily transactions plummet by over 96%, dropping to new lows.

According to data from ShibariumScan, on March 21, the network’s daily transactions reached 52,410, indicating a drastic decrease in user engagement and network utilization.

To put this into perspective, the platform’s transactions were previously as high as 151,090. However, over the past 24 hours, Shibarium has taken another hit, decreasing by more than 60% from the initial value.

Moreover, on February 14, Shibarium Scan recorded an increase in daily transactions, reaching as high as 4.77 million. In just a week, this astronomical figure has crashed to disheartening lows, highlighting the market's volatility and declining interest in the ecosystem.

The sharp decline in Shibarium’s daily transactions also suggests that users may be losing confidence in the network’s ability to sustain high activity levels, especially in volatile markets.

This massive crash comes amid a broader market downturn and volatility, with the market crashing severely following Bitcoin’s (BTC) failure to sustain prices above the $100,000 threshold.

Following BTC’s downtrend, major meme coins, including Shiba Inu, plummeted, with its price dropping from previous highs above $0.00002 to $0.000015 currently.

Considering that Bitcoin has failed to break past the bearish trend and return to prices above $100,000, other altcoins and meme coins are experiencing a similar restriction in their momentum.

While this less-than-optimistic market environment has not been ideal for Shibarium’s growth, its overall transaction count is still increasing, albeit slowly. As a result, it is gradually approaching a key milestone, slowly inching towards hitting a 1 billion transaction count.

Will The Shiba Inu Price Be Affected By Shibarium’s Crash?

The recent downturn in Shibarium transactions has raised questions and could impact the Shiba Inu ecosystem. However, it remains uncertain whether this drawdown will directly influence SHIB’s price action.

Typically, when the Shibarium network is thriving and experiencing a surge in transactions, it helps to boost the meme coin’s utility and overall long-term sustainability and adoption.

However, with transaction volumes plummeting, this could significantly reduce burn rates — an activity that is aimed at decreasing the meme coin’s supply and driving price appreciation.

Not only this, declining network engagement could exacerbate selling pressures, putting more burden on the already weak market.

As of this writing, the price of Shiba Inu is $0.000015, marking a 2.24% decrease in the last 24 hours, according to CoinMarketCap. The cryptocurrency has been in the red zone for the past few weeks, crashing by more than 23.9% in the last 30 days.