Shibarium, the Shiba Inu team’s Layer 2 network, saw its performance under the spotlight, given the recent change in fortunes. Considering how integral the network’s success is to the growth of Shiba Inu (SHIB), this development has undoubtedly been a source of concern among members of the SHIB Community.
Shibarium daily transactions drop by over 90%
Data from Shibariumscan shows that daily transactions on Shibarium have declined by more than 90% since reaching 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 of over 20,000 this month.
Shibarium’s decline is worrying, especially given the immense success the Layer 2 network saw late last year. In December 2023, Shibarium on average more than 7 million transactions for most of the month. However, things started to deteriorate from the start of the year, when Shibarium’s daily transactions collapsed by almost 50%.
Meanwhile, Shibarium’s underperformance cannot be ignored, given its role in Shiba Inu’s growth. Since Layer 2 network launchthe Shibarium team has committed to using certain transaction fees earned to achieve SHIB burns. Thanks to this, finished 33.8 billion SHIB tokens were burned in December when Shibarium reached its peak.
However, the decline in the number of daily transactions on the Shibarium network has reduced the amount of transaction fees collected, ultimately affecting the number of SHIB burns performed by the network. This caused SHIB Burn Rate has dropped significantly as of late, with tokens burned each week nowhere near the amount burned when Shibarium was at its highest.
Shiba Inu continued to shine despite everything
Despite The underperformance of Shibarium since the start of the year, the Shiba Inu has again achieved significant price increases. The same piece is currently posting a year-to-date gain of over 131% and is among the best performing crypto assets this year. The Shiba Inu’s impressive performance this year is mainly due to its fundamentals, with the The Shiba Inu Team actively work on ways to improve the ecosystem.
Shiba Inu has also been a big beneficiary of the coin narrative, with this category of crypto token expected to be one of the major narratives in history. this bull race. Meanwhile, from a technical analysis perspective, crypto analysts have also proposed a bullish outlook for Shiba Inu, predicting that the meme coin will reach a new all-time high in this market cycle.
Therefore, the Shiba Inu should still benefit from further price increases as this bull run progresses. However, there is no doubt that an increase in Shibarium’s daily trading could provide more bullish momentum for the second-largest coin by market capitalization.
Featured image created using Dall.E, chart from Tradingview.com
