End Of The Road? Shiba Inu’s Shibarium Sees Massive 80.3% Crash In Active Accounts
July 25 2024 - 7:30AM
NEWSBTC
The Shibarium network, an Ethereum Layer 2 network that was
developed and launched by the Shiba Inu team, did well following
its initial launch in August 2023. However, less than one year
following its launch, the Layer 2 network has run into some hard
times, losing market share to larger counterparts. This has led to
a decline in activity for the network as a whole, and so far this
week, the Shibarium network has seen a major decline in active
accounts. Shibarium Active Accounts Drop 80.3% In 4 Days The
Shibarium network is currently struggling with adoption of the
blockchain as its parent Layer 1 blockchain, Ethereum, is fighting
against the likes of Solana to keep its users. Furthermore,
Ethereum Layer 2 networks such as Base by Coinbase have also drawn
out a reasonable number of decentralized finance (DeFi) users,
putting it ahead of Shibarium. Related Reading: Golden Cross
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As a result of this, the Shibarium network has been unable to keep
users, leading to a decline in active addresses. According to data
from ShibariumScan, active accounts at the start of the week, on
Sunday, July 21, were sitting at a mere 667. As the week has drawn
on, this already small figure has crashed further down. On
Wednesday, July 24, the total active accounts recorded on the
Shibarium network was only 131. This means that between Sunday and
Wednesday, the total active accounts on the Ethereum Layer 2
network had plummeted by 80.3%. In the same vein, there has also
been a notable decline in new transactions. This metric saw a total
of 6,353 transactions on Sunday. However, by Wednesday, the figures
had declined to 1,023, representing an approximately 84% decline.
Likewise, the number of new blocks mined dropped 66.6% from 17,220
on Tuesday to 5,739 on Wednesday. These all show that interest in
the Shibarium network is completely down with number of new
accounts created was only 11 on Tuesday, July 23. Playing With The
Big Dogs While the popularity and success of Shiba Inu over the
years played into the anticipation for the Shibarium network, it
has failed to live up to the app. When it comes to Ethereum Layer 2
networks that were launched between 2023 and 2024, the Shibarium
network doesn’t hold up a candle to these other players. Currently,
the Total Value Locked (TVL) on the Shibarium network is only $1.5
million, according to data from DeFiLlama. In contrast, Coinbase’s
Base network was launched in the same month of August 2023 as
Shibarium currently boasts $2.175 billion in TVL. Related Reading:
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The Linea network was launched a few months before Shibarium in
March 2023, and the Layer 2 network currently has a TVL of $1.198
billion. Likewise, the BLAST network, which was launched much later
in February 2024, has $1.47 billion in TVL. What this suggests is
that the Shibarium network may have failed, given its incredibly
low usage. However, there is always the question of if the Layer 2
network will be able to rise from the ashes and become a top DeFi
contender once again. Featured image created with Dall.E, chart
from Tradingview.com
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