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Recent price action indicates that Shiba Inu (SHIB) is currently underperforming compared to other major cryptocurrencies. Over the past seven days, SHIB has experienced a significant decline of 7.26%, and in just the last 24 hours, the token has fallen by an additional 2.58%. This downturn is particularly noteworthy when compared with the performance of Dogecoin (DOGE), its meme coin counterpart. Unlike SHIB, Dogecoin has enjoyed a robust 12% increase over the same seven-day time frame.
One key factor contributing to SHIB’s recent struggles is a noticeable decline in several crucial Shibarium metrics over the past 24 hours. Shibarium, the L2 blockchain network associated with Shiba Inu, has seen a drop in user engagement, transaction volume, and other important indicators, which has likely contributed to a lack of full bullish sentiment surrounding the token.
Shiba Inu’s Shibarium Falls In Key Metrics
Built upon the Ethereum blockchain, Shibarium is Shiba Inu’s layer-2 solution designed to enhance scalability and strengthen the overall Shiba Inu cryptocurrency ecosystem. Interestingly, Shibarium has been closely linked to SHIB’s price movements since it launched last year, often driving significant fluctuations. SHIB’s price has historically experienced appreciable gains during periods of heightened activity on the network driven by increased SHIB transactions and bullish market sentiment
However, recent data from Shibariumscan shows that Shibarium has lacked significant activity in the past few days. Specifically, the number of active accounts on the network has dramatically declined, dropping from 667 on July 21 to just 113 at the time of writing. This represents a substantial 83% decrease in active accounts within two days. Additionally, the number of new transactions on the layer-2 network has plummeted sharply, falling from 6,353 on July 21 to only 524 in the last 24 hours.
Something To Worry About?
These metrics suggest a significant drop in user engagement, transactional activity, and SHIB accumulation on Shibarium, raising questions about the network’s current vitality and its impact on SHIB’s market performance. This reduction in activity could also suggest broader challenges within the Shiba Inu ecosystem, such as waning investor interest among other meme coins and utility tokens.
However, Shiba Inu has demonstrated remarkable resilience over the years, cultivating a large and dedicated community of enthusiasts. The current slowdown in Shibarium’s activity could be temporary. Activity could pick up with just a few whale accumulations or the announcement of a community update from the Shiba Inu team.
On the other hand, some SHIB bulls are working behind the scenes to resume an upward price trajectory. Notably, burn statistics reveal a dramatic increase in SHIB burns, surging by 428.88% in the past 24 hours alone, with 60 million SHIB tokens sent to dead wallets. This increased burning activity is an effort to reduce the circulating supply, which could positively impact SHIB’s price in the long term.
At the time of writing, SHIB is trading at $0.00001744, having recently rebounded from a support level of $0.00001710.
Featured image created with Dall.E, chart from Tradingview.com
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