Shiba Inu’s (SHIB) significant drop in interest did not go unnoticed. The Layer-2 (L2) platform Shibarium, which investors had high hopes for, saw a noticeable decline in demand. On July 9, user activity on the network hit its lowest monthly levels. While active addresses on the network decreased, the number of new addresses also declined, a trend that has been evident since July 5. As of July 10, only 11 new accounts were created on the L2.
Is This the End of Shibarium?
Briefly speaking, Shibarium is known as an Ethereum L2 solution designed to enhance scalability and transaction efficiency on the Ethereum blockchain. The primary goal was defined as significantly reducing transaction times and costs. Data provided by Shibariumscan revealed a drop in user participation over the past few days.
According to an on-chain data provider, the number of individual addresses performing at least one transaction on Shibarium dropped to 504 on July 9, marking the network’s lowest monthly level. The decline in active addresses on Shibarium dates back to July 5, showing a 33% decrease.
Additionally, there was a clear drop in the number of new addresses emerging on the L2. As of July 10, only 11 new addresses appeared on Shibarium. Considering the 167 new addresses on July 5, a 93% decline was observed.
SHIB Price Prediction
Despite the market’s bearish outlook and uncertainties, the market view suggests a potential rally for Shiba Inu (SHIB). SHIB has seen an 8% increase from last week to today. As of the time of writing, SHIB continues to find buyers at $0.00001657.
The Chaikin Money Flow (CMF), which indicates cash inflow in the market, has been rising for SHIB over the past few days, reflecting the demand coinciding with the price increase.
The rise in any asset’s CMF along with its price can indicate existing buying pressure in the market, which is thought to have a positive effect on the price.
An increase in volume is generally considered one of the indicators that the existing upward pressure might continue. If the current CMF rise maintains its strength, SHIB’s price could reflect an increase to the $0.00001767 region.
