Shiba Inu’s layer 2 blockchain, Shibarium, recorded a sharp rise in daily transactions despite subdued activity across the rest of the Shiba Inu ecosystem. Shibarium Scan reported that daily transaction counts increased from 661 on July 21 to 1,151 on July 22, marking a 74% surge within just 24 hours.
Shibarium sees growth amid quiet market
The jump in Shibarium’s transaction volume comes as the broader Shiba Inu ecosystem remained mostly inactive. This growth stands out, especially as the price of SHIB has struggled to find positive momentum in recent trading sessions.
At the same time, the general cryptocurrency market continued its consolidation phase, with many coins, including SHIB, declining. At the latest reading, SHIB fell by 1.54% over the previous 24 hours, trading at $0.000004166. SHIB’s weekly rise narrowed to just 0.51%, and the token has dropped 23% so far in July, closing each week of the month with losses.
Price struggles and low market activity
SHIB’s recent price performance highlights a pattern of fading weekly gains. After failing to move beyond the $0.0000043 resistance, Shiba Inu appears poised for a period of sideways trading, with no immediate signal of a sharp move either up or down.
Santiment, a crypto analytics platform, noted in a recent report that trading volumes for large-cap cryptocurrencies have continued to decline since July 2024, reaching their lowest average levels in nearly two years.
Mini dictionary: Santiment is a blockchain analytics platform that provides insights using on-chain, social media, and development data to help crypto traders and investors evaluate market trends and behaviors.
The platform attributed this slowdown not only to waning trader enthusiasm, but also to persistent macroeconomic challenges, lower risk appetite, and diminishing confidence in altcoin rallies following recent sell-offs.
Trading volumes for large-cap cryptocurrencies have dropped to their lowest two-year average, with reduced spot demand and traders showing less willingness to rotate into altcoins, according to Santiment.
Impact of low trading volume on future price action
Santiment’s analysis suggested that a prolonged decrease in trading volume can influence market behavior in two ways. First, insufficient demand can make upward price rallies susceptible to rapid reversals. Second, thinner liquidity might pave the way for smoother upside moves should sellers exit and spot buying return.
Because risk sentiment remains weak and few traders are chasing altcoins, there is currently little social or trading energy to drive a shift in direction. Analysts observed that, under these market conditions, even modest increases in buying activity could help prices recover relatively quickly as liquidity remains thin.
| Date | Shibarium Daily Transactions | SHIB Price |
|---|---|---|
| July 21 | 661 | $0.000004166 |
| July 22 | 1,151 | $0.000004166 |
For now, Shiba Inu’s key layer 2 network remains active even as SHIB price action shows little sign of immediate recovery. The market’s attention is fixed on whether renewed interest in the network will translate into a stronger trend for the flagship token.
