Shibarium Struggles to Keep Up With Competition as Daily Trading Volume Drops to $21K

With competition intensifying in the blockchain world, Shiba Inu's Layer-2 network, Shibarium, is struggling to keep up.

Shiba Inu's Layer-2 network, Shibarium, is struggling to gain traction as evidenced by its dismal trading volume. Despite boasting over 1 billion transactions and 199 million unique wallet addresses since its mainnet launch, Shibarium's daily trading volume is a mere $21,000, according to data from DexScreener.

To put this into perspective, major Layer-2 networks like Base and Polygon are generating significantly higher trading volumes, with Base at $742 million and Polygon at $68.8 million. Among Shibarium's own DEXs, WoofSwap leads with a paltry $9,500 in daily volume, while ShibaSwap follows at $5,700. Other platforms like ChewySwap, MarSwap, and YagiSwap report even lower figures.

Shibarium's low trading activity could be a cause for concern for investors, especially as it rolls out new features and attracts more users. With more traders shifting their focus to other platforms like Base and Polygon, some are speculating that the lack of interest in Shibarium could start to impact the price of Shib.

Shib has been showing some resilience despite the bear market. It is currently trading at $0.00001196, showing a slight increase of 0.44% over the past 24 hours.

As seen on the 1-day chart, Shib is forming a classic falling wedge breakout, a bullish technical pattern. The price is also testing the 100-day moving average, which could be a key level to watch.

The Relative Strength Index (RSI) is at 57, indicating that the token’s momentum is still strong without reaching overbought conditions.

Shib is now in the process of testing a key resistance level at $0.0000122. If the buyers manage to push the price above this level with strong volume, the next resistance to watch will be at $0.0000165. A break above this level could propel the price towards the next resistance zone between $0.000025 and $0.00002.

On the other hand, if sellers manage to push the price back from the current resistance level and volume drops significantly, then the price could drop back to the support level at $0.00001.

Shib is known for its strong community and the potential for significant price appreciation. With the launch of Shibarium and other projects in the pipeline, there is certainly potential for Shib to continue its recovery in 2023 and beyond.