Ethereum News Today: Shibarium’s 99.8% Drop Exposes Meme Coin’s Sustainability Struggle

Shibarium, the Layer-2 network of Shiba Inu (SHIB), has seen an alarming drop in daily transaction volumes, sparking concerns over its ability to sustain growth. According to Shibariumscan data, daily transactions have plummeted from a peak of approximately 4.8 million on August 20 to just 9,590 as of the latest report, representing a 99.8% decline [1]. This sharp drop has raised questions about the network’s long-term viability and utility in a broader crypto ecosystem [2]. The decline appears to coincide with a broader lull in the crypto market during late August, with many investors adopting a wait-and-see approach [3].

Despite the drastic drop in daily transactions, Shibarium has maintained steady long-term statistics. Since its launch in August 2023, the network has accumulated over 1.5 billion total transactions, with total blocks surpassing 12 million and unique addresses reaching 271 million [4]. This suggests that while active engagement has waned, the foundational metrics of the network remain intact. Shibarium’s second anniversary has not been accompanied by a resurgence in transaction activity, however, raising concerns about the network’s capacity to attract sustained user participation.

The decline in transaction volume is compounded by a significant drop in SHIB’s burn rate, a key mechanism for reducing token supply and potentially driving upward price pressure. Over the last 24 hours, the burn rate fell by 80.32%, with only 220,504 SHIB tokens burned [3]. This slowdown is indicative of weaker activity across the Shiba Inu ecosystem and has added to investor apprehension. SHIB’s price currently stands at $0.00001234, down 7.7% in the past week and down nearly 44% year-to-date [5].

In response to the declining metrics, the Shiba Inu community has emphasized a cautious approach. The team has issued multiple warnings to SHIB holders, urging them to avoid fake tokens and unauthorized links. Specifically, they have reiterated that there is no official LEASH token on Solana and no migration plans to the Solana blockchain [1]. These warnings underscore the importance of community vigilance as the project navigates this challenging period.

Shiba Inu’s marketing lead, Lucie, has sought to offer a more optimistic outlook. She emphasized the decentralized nature of Shibarium, noting that the network has no venture capital backing, no major exchange partnerships, and no corporate safety net—attributes she described as making the project more authentic. Lucie also highlighted the need for the community to focus on welcoming new projects and supporting builders, rather than merely reacting to market fluctuations [5]. Her message reflects an acknowledgment of the difficulties within the current bear market but also a call for patience and collaboration as the ecosystem evolves.

The broader crypto market remains in flux, with Ethereum (ETH) seeing renewed interest as it approaches new all-time highs. However, Shiba Inu has struggled to maintain its momentum, with SHIB’s market cap ranking currently at 23rd [6]. While Ethereum’s rise has reinvigorated interest in meme coins, the SHIB price has underperformed compared to peers like Dogecoin (DOGE) and DOGS, a smaller-cap meme coin with growing community support [6].

Source:

[1] Shiba Inu: Shibarium Hit With 99.8% Drop as Transactions ... (https://www.mexc.com/en-GB/news/shiba-inu-shibarium-hit-with-99-8-drop-as-transactions-hit-rare-low/79644)

[2] Shiba Inu: Shibarium Hit With 99.8% Drop as Transactions ... (https://cryptonews.net/news/altcoins/31530130/)

[3] Shiba Inu's Shibarium crashes 99.7%, burn rate plunges 80% (https://www.thestreet.com/crypto/markets/shiba-inus-layer-2-shibarium-crashes-99-9-faces-major-setback)

[4] Shiba Inu: Shibarium Hit With 99.8% Drop as Transactions ... (https://u.today/shiba-inu-shibarium-hit-with-998-drop-as-transactions-hit-rare-low)

[5] Shiba Inu Exec Gives Reasons To Keep Going Despite ... (https://www.mitrade.com/insights/news/live-news/article-3-1086156-20250902)

[6] 4 Meme Coins to Watch as Ethereum (ETH) Eyes New ATH ... (https://finbold.com/4-meme-coins-to-watch-as-ethereum-eth-eyes-new-ath-in-september/)