Recent price action indicates that Shiba Inu (SHIB) is currently underperforming compared to other major cryptocurrencies. Over the past seven days, SHIB has seen a significant decline of 7.26%, and in the past 24 hours alone, the token has dropped by an additional 2.58%. This decline is particularly notable when compared to the performance of its meme counterpart Dogecoin (DOGE). Unlike SHIB, Dogecoin has benefited a sharp increase of 12% over the same seven-day period.
One of the key factors contributing to SHIB’s recent struggles is a notable drop 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 metrics, likely contributing to a lack of total bullish sentiment surrounding the token.
Shiba Inu Shibarium Drops in Key Indicators
Built on the Ethereum blockchain, Shibarium is Shiba Inu’s layer-2 solution designed to improve scalability and strengthen the overall Shiba Inu cryptocurrency ecosystem. Interestingly, Shibarium has been closely tied to SHIB’s price movements since its launch last year, often leading to significant fluctuations. SHIB’s price has historically seen appreciable gains over the past periods of increased activity on the network, driven by increasing SHIB transactions and bullish market sentiment
However, recent data from Shibarium scanned The survey results show that Shibarium has lacked significant activity over the past few days. Specifically, the number of active accounts on the network has dropped significantly, from 667 on July 21 to just 113 at the time of writing. This represents a substantial 83% decrease in active accounts in two days. Additionally, the number of new transactions on the Layer 2 network has dropped dramatically, from 6,353 on July 21 to just 524 in the last 24 hours.
What to worry about?
These metrics suggest a significant decline in user engagement, transactional activity and SHIB Accumulation on Shibarium, raising questions about the network’s current vitality and its impact on SHIB’s stock performance. This reduction in activity could also suggest broader challenges within the Shiba Inu ecosystem, such as declining investor interest in other meme coins and utility tokens.
However, Shiba Inu has shown remarkable resilience over the years, cultivating a large and dedicated community of enthusiasts. The current slowdown in Shibarium activity may be temporary. Activity could pick up again with just a few whale accumulations or the announcement of a Community Update from the Shiba Inu team.
On the other hand, some SHIB the bulls work SHIB prices have resumed their upward trajectory behind the scenes. Burn statistics notably reveal a dramatic increase in SHIB burns, which have increased by 428.88% in the last 24 hours alone, with 60 million SHIB tokens being sent to dead wallets. This increase in burn activity is an effort to reduce the circulating supply, which could have a positive impact on SHIB price in the long run.
At the time of writing, SHIB is trading at $0.00001744, having recently bounced from a support level of $0.00001710.
Featured image created with Dall.E, chart by Tradingview.com
