- Shiba Inu’s (SHIB) recent downturn in user engagement is becoming a focal point of concern for investors.
- Shibarium, the Layer-2 (L2) platform intended to stimulate network activity, has seen a substantial drop in demand.
- On July 9, Shibarium experienced its lowest user activity of the month, with a noticeable decline in new addresses as well.
Discover the factors contributing to Shibarium’s declining user activity and what it means for Shiba Inu investors.
Shibarium Faces a Significant Drop in User Engagement
Shibarium, designed as an Ethereum Layer-2 solution for enhancing the Ethereum blockchain’s scalability and transaction efficiency, has not lived up to the initial expectations. The platform has been experiencing a notable decrease in user activities. According to data from Shibariumscan, the number of unique addresses engaging in transactions on Shibarium dropped to 504 on July 9. This marks the network’s lowest monthly point, indicating a consistent decline that began on July 5, ultimately amounting to a 33% decrease in active addresses.
Decline in New Addresses on Shibarium
The slump in Shibarium’s user activity is further highlighted by the steep drop in the creation of new addresses. Only 11 new addresses were generated by July 10, plummeting from 167 on July 5. This dramatic 93% decrease raises questions about the platform’s future viability. The bearish sentiments prevailing in the market seem to be a critical factor behind this trend, even though SHIB has shown some resilience by appreciating 8% over the past week, standing at $0.00001657 at the time of reporting.
Conclusion
In summary, Shiba Inu’s L2 solution, Shibarium, is grappling with significant user engagement challenges characterized by declining active and new addresses. Despite the recent short-term price surge, the platform’s dwindling user base poses a significant concern. Investors are advised to monitor user activity metrics closely while considering the broader market conditions and performance indicators. The coming weeks will be crucial in determining whether Shibarium can reclaim its momentum or if the declining trends will persist.
