Shibarium Transaction Count Derails, What is Happening?

Shibarium, the Shiba Inu-backed Ethereum-based layer-2 scaling solution has seen its first major transaction count slump in 2024. According to data from Shibarium Explorer, the average daily Shibarium transaction count at the time of writing is pegged at 6.06 million, down from the 7.84 million as of December 28, 2023.

Shibarium Transaction and Network Data Trend

Shibarium was launched in August last year without so much enthusiasm, especially as it recorded a mega crash when its traffic load initially surpassed the 1 million threshold.

The team behind the project, with support from ecosystem giants like Polygon, went back to the drawing board and boosted the protocol’s tensile strength. Upon rebirth, Shibarium recorded stability in its transaction load, and a remarkable twist was recorded toward the end of the year when the daily Shibarium transaction count jumped above 5 million for the first time.

Since then, the transaction count has stayed elevated with a range from around 7 and 8 million. The slump to the 6 million range comes as a surprise, considering the optimism within the Shiba Inu ecosystem drawing on the number of updates that are poised to start materializing from this month.

Other crucial Shibarium network updates also recorded some plunges as the average block time shifted from the regular 5.0 to 5.3, implying that transactions are now generally processed much slower. Additionally, the active address count on the Shibarium network dropped from more than 2,800 in late December to 1,132 as of January 1.

This alongside the drop in new accounts registered on the network is proof that interest is generally waning on Shibarium.

Explaining the Shibarium Metric Slip

Despite the dominance that Shiba Inu has maintained as the second largest memecoin by market cap after Dogecoin (DOGE), its attractiveness, owing to its potential for rapid gains is waning, pushing retail investors farming these asset classes to pursue alternative tokens.

Major Solana memecoin memecoins including BONK AnaloS, and Dogwifhat amongst others pushed the rapid gains bar to a new height last month, setting a growth standard that SHIB has not tasted since its early days.

At the time of writing, Shiba Inu was changing hands at a price of $0.00001058, down by 1.23% in the past 24 hours.

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