Shiba Inu’s Shibarium recently suffered a major setback following a massive crash in active accounts on the layer-2 network. This development undoubtedly presents a bearish outlook for Shiba Inu, considering Shibarium’s impact on the meme coin’s price.
The Shiba Inu Shibarium Records 97.6% Crash In Daily Active Accounts
Data from Shibariumscan shows that the layer-2 network suffered a 97.6% crash in its daily active accounts between August 20 and 22. Daily active accounts on Shibarium peaked at 2,955 on August 20. However, this figure significantly declined on August 21, dropping to 341, and further tumbled on August 22, dropping to 309.
These daily active accounts refer to the number of wallet addresses transacting on the network on a particular day. The spike in daily active accounts on August 20 coincides with the surge in daily transactions on that same day, with 28,680 transactions processed on that day. It is worth mentioning that network activity on Shibarium had been on a downtrend before August 20.
The number of daily active accounts on Shibarium in the last thirty days has been in the lower hundreds. August 1 was the only other day on which thousands of wallet addresses transacted on the layer-2 network, recording 1,898 daily active accounts. Likewise, daily transactions on the network have also been on the low, ranging between 1,000 and 5,000 daily transactions in the last thirty days.
Many in the Shiba Inu community would have hoped that the surge recorded on August 20 was the beginning of an uptrend in the network’s activity.
However, the 97.6% crash shows that Shibarium still suffers a downtrend. This development has also had ripple effects on the Shiba Inu ecosystem. The meme coin’s burn rate has drastically reduced, and there have been days when no token burn was carried out.
70% of base transaction fees earned on Shibarium are automatically meant to be converted to Shiba Inu and burnt. However, this automated burn mechanism has yet to be fully implemented, likely due to the low activity on the layer-2 network.
Shibarium Has Still Come A Long Way
Despite this setback for Shibarium, the layer-2 network has undoubtedly made significant progress since its launch last August. To mark its first anniversary, the official X (formerly Twitter) account for Shibarium highlighted some of its achievements. This included the fact that the network has processed over 417 transactions and boasts 1.8 million wallet addresses.
Furthermore, Shibarium has executed three hard forks (Delhi, Indore, and Shanghai), all adding “vital functionalities” to the network. The layer-2 network has also become home to notable decentralized finance (DeFi) applications, including the liquid staking platform K9 Finance. Gaming Finance (GameFi) is also set to become another of the network’s offerings, with the gaming platform Shiba Eternity set to launch on Shibarium.
Cover image from Dall-E, chart from Tradingview