Shiba Inu’s Shibarium Sees Massive Drop In Interest As Transaction Volume Crashes 90%, What’s Going On?

Shibarium,
the
Layer
2
network
from
the
Shiba
Inu
team,
has
seen
its
performance

come
under
the
spotlight,
given
the
recent
change
in
fortune.
Considering
how
integral
the
network’s
success
is
to
Shiba
Inu’s
(SHIB)
growth,
this
development
has
undoubtedly
been
a
cause
for
concern
among
members
of
the


SHIB
community. 

Shibarium’s
Daily
Transactions
Declines
By
Over
90%

Data

from
Shibariumscan
shows
that
the
daily
transactions
on


Shibarium

have
declined
by
over
90%
since
hitting
a
recent
high
of
121,000
transactions
recorded
on
April
19.
On
May
19,
the
layer-2
network
recorded
a
daily
transaction
of
just
over
11,000.
This
has
been
the
trend
for
a
while
now,
with
May
3
being
the
only
time
the


layer-2
network

recorded
a
daily
transaction
above
20,000
this
month. 

Shibarium’s
decline
is
worrisome,
especially
considering
the
immense
success
the
layer-2
network
recorded
at
the
end
of
last
year.
In
December
2023,
Shibarium


averaged

over
7
million
transactions
for
most
of
the
month.
However,
things
began
to
go
downhill
from
the
beginning
of
the
year
when
Shibarium’s
daily
transactions
crashed
by
almost
50%. 

Meanwhile,
Shibarium’s
underperformance
cannot
be
ignored,
given
its
role
in
Shiba
Inu’s
growth.
Since
the


layer-2
network
launched,
the
Shibarium
team
has
committed
to
using
some
transaction
fees
earned
to
carry
out


SHIB
burns.
Thanks
to
this,
over


33.8
billion
SHIB
tokens

were
burned
in
December
when
Shibarium
achieved
its
peak
success. 

However,
the
decline
in
the
number
of
daily
transactions
on
the
Shibarium
network
has
reduced
the
amount
of
transaction
fees
earned,
ultimately
affecting
the
number
of
SHIB
burns
carried
out
by
the
network.
This
has
caused


SHIB’s
burn
rate

to
drop
significantly
as
of
late,
with
tokens
burnt
weekly
nowhere
close
to
the
amount
burned
when
Shibarium
was
on
a
high. 

Shiba
Inu
Has
Continued
To
Shine
Regardless

Despite


Shibarium’s
underperformance

since
the
start
of
the
year,
Shiba
Inu
has
still
made
significant
price
gains.


The
meme
coin

currently
boasts
a
year-to-date
(YTD)
gain
of
over
131%
and
is
among
the
best-performing
crypto
assets
this
year.
Shiba
Inu’s
impressive
performance
this
year
has
been
mainly
thanks
to
its
fundamentals,
with
the


Shiba
Inu
team

actively
working
on
ways
to
improve
the
ecosystem. 

Shiba
Inu
has
also
been
a
huge
beneficiary
of
the
meme
coin
narrative,
with
this
category
of
crypto
tokens
projected
to
be
one
of
the
leading
narratives
in


this
bull
run.
Meanwhile,
from
a
technical
analysis
perspective,
crypto
analysts
have
also
offered
a


bullish
outlook

for
Shiba
Inu,
predicting
that
the
meme
coin
will
hit
a
new
all-time
high
in
this
market
cycle. 

Therefore,
Shiba
Inu
is
still
expected
to
enjoy
further
price
surges
as
this
bull
run
progresses.
However,
there
is
no
doubt
that
an
increase
in
Shibarium’s
daily
transactions
could
provide
more
bullish
momentum
for
the
second-largest
meme
coin
by
market
cap. 

Featured
image
created
using
Dall.E,
chart
from
Tradingview.com