The Shiba Inu ecosystem’s Layer-2 network, Shibarium, has seen a significant decline in transaction volume since the end of August. On August 30th, only 16,670 transactions were recorded, marking the lowest level seen during the period. With the number of transactions on the network nearing zero, reaching the anticipated 2 billion transaction milestone appears unlikely after having recently surpassed 1.5 billion transactions.
Shibarium’s Transaction Volume Falls Significantly
Data from Shibariumscan reveals that the total transaction count is at 1.556 billion. Over the past 12 days, only 14.92 million new transactions were added, showing a stark contrast to the period when the network averaged 3 to 4 million daily transactions. At the beginning of August, Shibarium gained strong momentum with over 4 million daily transactions, generating significant expectations within the ecosystem community. However, recently, a decline in user interest has considerably slowed down transaction speed and reduced the overall volume.
The 2 billion transaction target was especially projected for the end of September. However, the current performance makes reaching this milestone challenging. The decrease in user engagement and transaction intensity significantly impacts the network’s short-term roadmap.
SHIB Coin’s Price Weakness Challenges the Ecosystem
The slowdown within the Shiba Inu ecosystem is directly linked to the pressure on SHIB coin’s price. The altcoin SHIB saw a 0.58% decrease in the last 24 hours, failing to keep up with the 0.74% rise in the overall market. According to CryptoAppsy’s provided price data, the altcoin was trading at $0.00001228 at the time of the report.
Experts suggest that one of the main reasons for the selling pressure on the altcoin is the ineffective coin burning mechanisms. The less-than-expected coin burns weaken price performance and diminish user interest. This negatively impacts both Shibarium’s transaction volume and the overall vibrancy of the ecosystem.
