Shiba Inus Shibarium recently suffered a major setback after a massive crash in active accounts on the Layer 2 networkGiven the impact of Shibarium on the price of the meme coin, this development undoubtedly represents a bearish forecast for Shiba Inu.
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Shiba Inu Shibarium sees 97.6% drop in daily active accounts
Data by Shibariumscan shows that the Layer 2 network suffered a crash of 97.6% of its daily active accounts between August 20 and 22. Daily active accounts on Shibarium peaked at 2,955 on August 20. However, this number dropped significantly on August 21, falling to 341, and on August 22, it plummeted further, falling to 309.
This Daily active accounts refers to the number of wallet addresses transacting on the network on a given day. The increase in daily active accounts on August 20 coincides with the increase in daily transactions on the same day, with 28,680 transactions processed that day. It is worth noting that network activity on Shibarium was declining prior to August 20.
The number of daily active accounts on Shibari over the past thirty days, it has been in the low hundreds. August 1st was the only other day when thousands of wallet addresses were transacting on the Layer 2 network, with 1,898 active accounts recorded daily. Likewise, daily transactions on the network have also been low, ranging between 1,000 and 5,000 daily transactions over the past thirty days.
Many in the Shiba Inu community would have hoped that the spike seen on August 20 was the start of an uptrend in network activity.
However, the 97.6% crash shows that Shibarium is still on a downward trend. This development also had an impact on the Shiba Inu ecosystem. The Meme coin burn rate has decreased drastically and there were days when no token burn was performed.
70% of the base transaction fees earned on Shibarium will be automatically converted into Shiba Inu and burned. This automated burning mechanism has not yet been fully implemented, probably due to low activity in the Layer 2 network.
Shibarium still has a long way to go
Despite this setback for ShibariThe Layer 2 network has undoubtedly made significant progress since its introduction last August. To mark its first anniversary, Shibarium’s official X-Account (formerly Twitter) highlighted some of its achievements, including the fact that the network has processed over 417 transactions and has over 1.8 million wallet addresses.
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In addition, Shibarium three hard forks (Delhi, Indore and Shanghai), all of which add “vital features” to the network. The Layer 2 network has also become home to notable decentralized finance (DeFi) applications, including the Liquid staking platform K9 FinanceGaming Finance (GameFi) is also set to become another offering of the network, with the gaming platform Shiba Eternity should be started on Shibarium.
Cover image by Dall-E, chart by Tradingview
