The Layer 2 scaling solution developed within the Shiba Inu (SHIB) ecosystem, Shibarium, experienced a significant drop in the number of transactions, seeing an astonishing 98.4% decrease in less than three days. Data from Shibariumscan reveals that the transaction count, which was over one million in the last 24 hours, has sharply fallen to just 9,330, indicating a concerning development for the network.
SHIB’s Price Falls Alongside Transactions
The sharp decline in transaction numbers coincided with a notable drop in the price of Shiba Inu’s primary asset, SHIB. After a significant 375% increase in the first half of March, SHIB’s price began to fall in the following two weeks, losing nearly a third of its gains. The popular altcoin‘s price is currently at $0.0000253.
The significant drop in SHIB’s price and the dramatic decrease in transactions on the Shibarium network have raised questions about the network’s stability and the overall health of the Shiba Inu ecosystem. While the exact cause of the transaction decline remains unclear, the timing of this anomaly amidst SHIB’s price fall is striking.
Decline May Continue to Deepen
Shiba Inu enthusiasts are trying to understand the underlying factors contributing to the current outlook and the potential effects of the downturn for both Shibarium and the broader cryptocurrency market. SHIB’s price had been notably volatile in recent weeks, with the general uptrend in the memecoin market being a primary factor fueling SHIB, but signs of the hype fading have led to a price decline in the altcoin.
As Shibarium currently struggles with a significant drop in transaction activity, the main concern is the future price trajectory of its primary asset SHIB and whether the current downward momentum will intensify.
Market observers, particularly those watching the largest cryptocurrency Bitcoin (BTC) and the altcoin king Ethereum (ETH), are warning investors that a continued downturn could lead to a deeper loss in SHIB’s value.
