Shiba Inu’s (SHIB) recent downturn in user engagement has raised concerns among investors. The Layer-2 (L2) platform Shibarium, once anticipated to boost network activity, has experienced a marked decrease in demand. On July 9, Shibarium’s user activity reached its lowest monthly point. Active addresses on the network, as well as the number of new addresses, have been declining since July 5. By July 10, only 11 new accounts were created on the L2 platform.
What Happened to Shibarium?
Shibarium is an Ethereum Layer-2 solution aimed at improving scalability and transaction efficiency on the Ethereum blockchain. Its primary objectives include reducing transaction times and costs. However, data from Shibariumscan indicates a significant drop in user engagement in recent days.
An on-chain data provider reported that the number of unique addresses executing at least one transaction on Shibarium fell to 504 on July 9, hitting the network’s lowest monthly level. This decline in active addresses began on July 5, showing a 33% decrease.
Why Are New Addresses Declining?
Additionally, there has been a noticeable decline in the number of new addresses appearing on Shibarium. By July 10, only 11 new addresses were recorded, down from 167 on July 5, marking a 93% decrease.
The bearish market outlook and uncertainties might suggest a potential rally for Shiba Inu (SHIB). Despite the downtrend, SHIB has seen an 8% increase from last week, trading at $0.00001657 at the time of writing.
Key Takeaways for Investors
– A 33% decline in active addresses on Shibarium since July 5.
– A dramatic 93% decrease in new addresses recorded between July 5 and July 10.
– SHIB’s price has increased by 8% despite the bearish market.
– Rising Chaikin Money Flow (CMF) indicates higher cash inflow, reflecting demand surge.
– Continued CMF strength could push SHIB’s price towards the $0.00001767 region.
Despite recent challenges, the market indicators suggest a cautiously optimistic outlook for Shiba Inu’s future performance. Investors should closely monitor ongoing trends in user activity and cash inflow metrics for more informed decision-making.