As a researcher with extensive experience in blockchain technology and cryptocurrency markets, I have closely monitored the progress of various Layer 2 networks, including Shibarium, since their inception. Having witnessed the initial buzz and hype surrounding Shibarium’s launch in August 2023, I was optimistic about its potential to disrupt the market and compete with established players. However, recent data on the network’s declining activity levels leaves me concerned.
The Shiba Inu team introduced Shibarium, their Ethereum Layer 2 network, in August 2023. After its successful debut, the network performed well initially. However, within just under a year of its launch, Shibarium faced tough competition from larger counterparts, causing it to lose significant market share. Consequently, overall network activity has decreased noticeably. This week alone, there’s been a substantial drop in the number of active accounts on the Shibarium network.
Shibarium Active Accounts Drop 80.3% In 4 Days
The Shibarium network is facing challenges in gaining traction due to the intense competition from its parent blockchain, Ethereum, which is currently locked in a battle with other platforms like Solana for user base. Additionally, Ethereum’s Layer 2 solutions, such as Base by Coinbase, have successfully attracted a significant number of decentralized finance (DeFi) users, leaving Shibarium behind.
Due to some issues, the Shibarium network has struggled to retain users, resulting in a significant decrease in active addresses. According to recent data from ShibariumScan, there were only 667 active accounts as of last Sunday, July 21. Unfortunately, this number has continued to decline throughout the week.
On July 24, 2023, there were 131 active accounts on the Shibarium network. In comparison, the number of active accounts on the Ethereum Layer 2 network had decreased by approximately 80.3% between Sunday and Wednesday.
Similarly, the number of new transactions has significantly decreased. On Sundays, we recorded a total of 6,353 transactions. In contrast, only 1,023 transactions occurred by Wednesday, which is roughly an 84% decrease compared to the previous figure.
The decrease in newly mined blocks was substantial, dropping by approximately two-thirds from 17,220 on Tuesday to 5,739 on Wednesday. This significant reduction, along with the creation of just 11 new accounts on Tuesday, July 23, indicates a noticeable decline in activity and interest within the Shibarium network.
Playing With The Big Dogs
The hype and achievement of Shiba Inu throughout the years fueled expectations for its Shibarium network. However, this platform has underperformed compared to other Ethereum Layer 2 networks that emerged between 2023 and 2024.
As a crypto investor, I’ve noticed that the Total Value Locked (TVL) on the Shibarium network is currently sitting at around $1.5 million, based on data from DeFiLlama. However, this pales in comparison to Coinbase’s Base network, which was also launched in August 2023 and boasts a staggering TVL of over $2.175 billion.
The Linea network, introduced around March 2023, boasts a total value locked (TVL) of approximately $1.198 billion. On the other hand, the BLAST network, initiated in February 2024, showcases an impressive TVL amounting to roughly $1.47 billion.
The current state of the Shibarium network raises concerns, with its minimal activity indicating potential failure. Yet, it’s essential to consider the possibility that this struggling Layer 2 solution might recover and regain its position as a major player in the DeFi sector.
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2024-07-25 15:40