Shibarium Network Faces 99% Decline in New Accounts Amidst Competition

The Shibarium network, launched by the Shiba Inu team in August 2023, has faced significant challenges in maintaining relevance amidst fierce competition among Ethereum Layer 2 networks. Despite initial excitement and a surge in new accounts, the network has since experienced a dramatic decline in participation.

The new account metric, which tracks the daily creation of brand new accounts on the Shibarium network, has fallen below 100. This metric is crucial as it indicates the adoption rate of the network. A spike in new accounts signifies rising adoption, while a decline suggests the opposite. In early May 2025, the network saw a peak of 5,111 new accounts created on a single day. However, this number has since plummeted by over 99%, dropping to just above 200 new daily accounts before bottoming out below 100. Over the last four days, fewer than 100 new accounts have been recorded daily.

This decline in new accounts coincides with a sharp decrease in active accounts on the network, dropping from over 21,000 daily at the start of May to less than 15,000 by mid-month. Additionally, new transaction figures have also fallen, with 1.87 million recorded on Tuesday compared to the 3 million average at the start of the month.

The bearish trend observed on the Shibarium blockchain extends to other areas, including the total addresses holding the Shiba Inu token. According to IntoTheBlock, the total addresses holding Shiba Inu have declined from above 1.4 million to 1.39 million. This small but notable decline indicates that investors are exiting the cryptocurrency.

Concurrently, the Shiba Inu price has struggled to maintain stability, caught in a power struggle between bears and bulls. The price has been constrained to a tight range of $0.000014 and $0.000017. If sell-offs continue, the meme coin could break below the support currently being established at $0.000014.

Analysts suggest that the decline in new accounts and active users on the Shibarium network could be attributed to several factors, including increased competition from other Ethereum Layer 2 networks and a lack of innovative features that could attract and retain users. The Shiba Inu team may need to reevaluate their strategy and introduce new initiatives to revive interest and adoption in the Shibarium network.