As a seasoned analyst with over two decades of experience in the crypto market, I have witnessed numerous highs and lows, bull runs, and bear markets. The recent 97.6% crash in daily active accounts on Shibarium’s layer-2 network is indeed concerning, especially considering its potential impact on Shiba Inu’s price action.
The recent significant decline in active accounts on Shiba Inu‘s Shibarium platform has dealt a heavy blow and raises concerns about a potential negative trend for Shiba Inu. Given Shibarium’s influence on Shiba Inu’s market value, this situation could point towards a bearish forecast for the meme coin.
The Shiba Inu Shibarium Records 97.6% Crash In Daily Active Accounts
According to information from Shibariumscan, the number of daily active accounts in its layer-2 network plummeted by a staggering 97.6% between August 20th and 22nd. The highest number of active accounts was recorded on August 20th at 2,955. But this figure took a sharp downturn the following day, dropping to 341, and then fell even further to 309 on August 22nd.
On a given day, the number of active accounts refers to the wallet addresses involved in transactions within the network. Notably, the significant increase in daily active accounts observed on August 20 aligns with a surge in daily transactions, where approximately 28,680 transactions were processed that day. It’s important to note that Shibarium’s network activity had been gradually decreasing prior to August 20.
Over the past thirty days, the number of daily active Shibarium accounts has mostly stayed below a thousand. The exception was August 1, where approximately 1,898 wallet addresses were involved in transactions on the layer-2 network. Similarly, the daily transaction volume has been relatively low, typically ranging from 1,000 to 5,000 transactions each day over the past month.
Many within the Shiba Inu community likely anticipated that the spike observed on August 20 signified the start of increased activity within the network, hinting at a possible upward trend.
Despite the significant 97.6% drop indicating a continuing downward trend for Shibarium, this setback has also caused reverberations throughout the Shiba Inu ecosystem. Consequently, the burning rate of the meme coin has significantly decreased, with certain days even showing no token burn activity at all.
70% of transaction fees generated in Shibarium are intended for conversion into Shiba Inu coins and destruction (or burning). This automatic burning process hasn’t been fully activated just yet, probably because the activity on the Shibarium layer-2 network is relatively low at this point.
Shibarium Has Still Come A Long Way
As a researcher, I must acknowledge that recent hurdles faced by Shibarium might have cast a shadow, but it’s essential to emphasize the remarkable strides this layer-2 network has made since its debut in August last year. To commemorate its first anniversary, the official X (previously Twitter) account for Shibarium showcased some of its milestones. Among these accomplishments were the processing of more than 417 transactions and the management of approximately 1.8 million unique wallet addresses.
Additionally, Shibarium has carried out three significant updates, known as Delhi, Indore, and Shanghai. These updates have each brought valuable new features to the system. Notably, this layer-2 network has attracted popular decentralized finance (DeFi) applications, such as K9 Finance, a liquid staking platform. Moreover, it’s anticipated that Shiba Eternity, a gaming platform in the realm of GameFi, will soon be available on Shibarium.
Cover image from Dall-E, chart from Tradingview
Read More
Sorry. No data so far.
2024-08-23 18:05