Shiba Inu (SHIB) is witnessing a notable decline as user engagement on Shibarium, its Layer-2 (L2) blockchain, significantly drops. Recent data indicate that activity on Shibarium has plummeted, with Monday’s figures revealing the lowest monthly demand. Despite the prolonged decrease in the value of Bone ShibaSwap (BONE)—the token used for transaction fees—user return to the L2 platform remains unimproved, alongside a noticeable 11% drop in BONE’s price over the last month.
Falling User Activity: A Closer Look
Shibarium, an L2 blockchain built on Ethereum to support the Shiba Inu ecosystem, has seen a marked reduction in user activity. According to Shibariumscan, the number of daily active addresses conducting transactions fell to 321, hitting a monthly low after peaking at 1,898 on August 1. This trend highlights a significant retreat in user participation on the platform.
Why is New Demand Decreasing?
New demand on Shibarium has also taken a severe hit. On Tuesday, only six new addresses were created compared to the 361 new addresses on August 1, representing a staggering 98% decline. This drop underscores the waning interest and new-user influx to the blockchain.
SHIB Whale Activity: Analyzing the Trends
Though the broader cryptocurrency market has shown signs of stabilization, SHIB whales have been offloading their holdings. Over the past week, a 67% reduction in the net flow of meme coin whales has been observed, suggesting significant sell-offs. Such actions by large holders often influence smaller investors to sell, which could further depress the coin’s price.
Notable Inferences
- Shibarium daily active addresses dropped to 321, the lowest monthly figure.
- New address creation on Shibarium declined by 98% from August 1.
- SHIB whales reduced holdings by 67% net flow over the past week.
- Price impacts could see SHIB drop to $0.000010 or rise to $0.000018 based on market actions.
Despite the downward trend, SHIB’s current trading price stands at $0.0000132, a 3.49% decrease over the past 24 hours. The SHIB/TRY pair is priced at 0.00044260 TL, reflecting the broader market’s influence on the cryptocurrency.