Shiba Inu Drops 2.679% as Daily Active Addresses Hit One-Year Low

Shiba Inu's latest price was $0.00001168, down 2.679% in the last 24 hours. The cryptocurrency has seen a significant decline in the number of daily active addresses, dropping to a one-year low. This decrease indicates a waning interest in the meme coin. However, if market sentiment shifts positively and the number of daily active addresses reaches one million, it could signal massive market interest and network usage, potentially fueling a price recovery.

Data from Santiment reveals a drastic drop in the number of daily Shiba Inu active addresses, with the number of daily users standing at 3,220, a notable drop from the year-to-date high of 8,509. In May 2021, the number of active SHIB addresses reached a peak of 60,496, fueled by Ethereum founder Vitalik Buterin burning more than 400 trillion SHIB tokens. This event sparked significant market interest in the meme coin.

Shiba Inu's Layer-2 blockchain, Shibarium, has officially surpassed 1 billion transactions, marking a significant achievement for the ecosystem. This milestone comes 18 months after the platform’s launch, underscoring its rapid adoption and growing role in the crypto space. Shibarium, a Layer-2 solution built on Ethereum, was introduced in August 2023 to enhance scalability and reduce transaction costs for the Shiba Inu ecosystem. Since then, the network has processed over 10 million blocks with no major outages, highlighting its technical robustness and reliability.

Notably, this milestone places Shibarium among the fastest-growing blockchain networks in the Web3 space. The network has consistently handled millions of transactions daily, with recent data indicating over 4 million transactions processed in a single day. Additionally, the network has maintained a stable average block time of 5 seconds, further cementing its efficiency. The achievement reflects the growing engagement of its community, the “ShibArmy,” with SHIB now boasting over 5 million holders across various tokens and exchanges. The increasing activity in Shibarium also plays a crucial role in SHIB’s burn mechanism, which aims to reduce the token supply and create long-term scarcity-driven value.

Moreover, Shibarium’s expansion aligns with the broader goal of transforming the ecosystem into a roll-up hub, potentially supporting custom Layer-3 solutions. With BONE, the network’s governance and gas token facilitating transactions, developers can build more advanced applications on the platform, further driving utility and innovation. Despite Shibarium’s impressive milestone, SHIB’s price has not seen a significant bullish reaction. While some investors are optimistic about Shibarium’s long-term potential, memecoins like SHIB are primarily driven by market trends, especially during bullish altcoin cycles and speculation. In the 2021 bull run, SHIB saw a sharp rally alongside XRP and other altcoins, fueled by retail interest and speculative trading. A similar pattern occurred in 2024 when SHIB’s price surged over 100% in Q3 following Donald Trump’s election.

While SHIB’s price remains under pressure, Shibarium’s continued growth could enhance its long-term potential. If the network continues to see high transaction volumes and increased user engagement, it could contribute to greater demand for SHIB. Shibarium’s next development phase could introduce additional DeFi applications, further strengthening its utility. Meanwhile, SHIB holders closely monitor market trends, particularly Bitcoin’s price action and overall crypto sentiment, to gauge potential price movements.

Shiba Inu recorded a sharp rise in its token burn activity, with over 20 million SHIB permanently removed from circulation. This burn caused the daily burn rate to surge more than 2000%, according to data from the Shibburn tracking platform. The tokens were sent to a wallet address that is no longer accessible to recover the tokens further reducing the total supply. Despite the burn, the total circulating supply remains large, sitting at roughly 584.37 trillion tokens. While the burn rate was high, the reduction made only a small dent in overall supply numbers. This has left some traders questioning whether these burns are enough to influence the price in a meaningful way.

Activity among SHIB holders has dropped considerably over the last two months. In mid-February, over 13,000 unique wallet addresses were transacting with SHIB on a daily basis. That figure has now dropped to below 3,000, marking a steep 78% decline in active users. The fall in daily wallet activity may indicate that fewer people are interacting with the token, whether through trading, transfers, or other on-chain activity. Lower engagement could mean reduced interest from retail users and may explain why the price has stayed flat even during periods of high token burning. Within the SHIB community, there is still some anticipation of a possible price movement. A post by a well-followed community member, SHIB Knight, mentioned that a “pump wave” could be on the horizon. However, no clear timing or additional details have been provided to support this claim. At the same time, not everyone in the market is convinced. A trader posting under the name “wallstreetbets” noted that despite burn efforts, the overall supply still appears unchanged. As a result, market sentiment remains mixed, with some users waiting for confirmation of stronger price signals before making moves.