Shibarium’s Transaction Plunge Exposes Crypto Community’s Shifting Loyalty

Shibarium, the Layer-2 network of Shiba Inu (SHIB), has experienced a dramatic decline in daily transaction volume, dropping by over 99.8% in just 10 days. According to Shibariumscan data, the network’s daily transactions have fallen from a peak of 4.8 million on August 20 to only 9,590 as of the latest reporting period [1]. This represents a near-complete collapse in activity and has drawn attention in the crypto community, especially given the broader market slowdown observed in late August [3].

Despite the drastic drop in daily transactions, Shibarium’s long-term metrics remain robust. Since its launch in August 2023, the network has processed over 1.56 billion total transactions and supports more than 271 million addresses, with over 12 million blocks minted [1]. These figures underscore the foundational strength of the network, even as user activity has drastically declined. The recent slump appears to be driven by behavioral factors, such as user disengagement, rather than technical issues [3].

The sharp decline raises concerns about the network’s sustainability and adoption. Analysts suggest that the drop could indicate a temporary disaffection among the SHIB community, particularly in the absence of significant updates or incentives to drive engagement. The broader crypto market has also been subdued, with many investors adopting a wait-and-see stance, which may have contributed to the decline in Shibarium usage [3].

In response, the Shiba Inu team has intensified efforts to secure the community and prevent fraudulent activities. They have issued warnings about fake tokens and phishing attempts, including an unofficial LEASH token on Solana. Users are being reminded to verify the authenticity of any token or link before engaging with their wallets [1]. Additionally, asset manager Valour recently expanded its product offerings to include Shiba Inu in its Nordic ETP portfolio, a move that could help reintegrate SHIB into traditional financial markets [1].

Looking ahead, Shibarium faces a critical test in its ability to regain user trust and stimulate activity. While the network’s infrastructure remains stable, its future success will depend on introducing concrete use cases that go beyond speculative trading. The recent two-year anniversary of Shibarium’s launch highlights both the project’s endurance and the challenges it must overcome in a market that increasingly demands real-world applications and security guarantees [3].

Source:

[1] 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)

[2] 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)

[3] Shiba Inu Network Under Fire After 99.8 % plunge (https://www.cointribune.com/en/shiba-inu-network-under-fire-after-99-8-plunge/)