- The Shibarium layer-2 blockchain project has seen a marked downturn in activity.
- Notably, both daily blocks and transactions on the network have plummeted by over 50% recently.
- Increased SHIB token burn rate has coincided with a drop in SHIB’s market price.
Discover the latest developments in the Shibarium blockchain as it faces declining activity and market volatility.
Shibarium Sees Decline in Activity
Shiba Inu’s layer-2 solution, Shibarium, once a bright spot in the crypto sphere, has recently experienced a stark decline in network activity. The blockchain had previously soared to new heights, but recent data paints a different story.
On July 2, only 5,740 new blocks were added to Shibarium, a drastic reduction of nearly 70% compared to the 17,214 blocks processed the previous day. Daily transactions have similarly dwindled, falling from over 14,000 on June 30 to just around 6,000 within two days, a far cry from the millions of transactions recorded daily in mid-April.
Launched in August of last year, Shibarium aimed to provide Shiba Inu with a competitive edge in the meme coin arena by offering lower transaction costs, improved speed, and enhanced scalability. Despite undergoing significant upgrades, including a refreshed user interface and community-focused enhancements through a recent hard fork, its current performance suggests otherwise.
SHIB Token Performance Under Scrutiny
The SHIB token has faced increased volatility, impacting its burn rate and market price. The burn rate has surged by over 8,500%, which analysts believe may be due to investors offloading their tokens amidst current market uncertainties. As each transaction sends a portion of tokens to a null address, increased activity has directly influenced the burn rate.
Over the past 24 hours, SHIB’s value has decreased by 1.3%, with a weekly decline of 4%. Other meme coins like DogeWifHat (WIF), Pepe (PEPE), and Bonk Inu (BONK) have experienced even more significant losses, reflecting broader market challenges.
For more current updates, readers can explore our detailed coverage on Shibarium developments.
Conclusion
The recent trends in Shibarium activity and SHIB’s market performance offer a sobering perspective on the future of this blockchain project. With a sharp decline in transactions and blocks, the community and developers face the critical task of reigniting momentum. Investors remain cautious amid increased token burn rates and market volatility, considering the ongoing developments closely as they navigate the evolving landscape of meme coins.
