- Shibarium’s daily transactions drop to 5.69 million from 7 million, raising concerns about Shiba Inu’s adoption.
- Token burning surges by 2,068.92%, with plans to burn 9.25 trillion SHIB tokens to enhance utility.
Shibarium, the Layer-2 scaling solution supported by Shiba Inu, has witnessed a notable decline in transaction counts. Thus sparking concerns about its adoption within the Shiba Inu ecosystem.
The number of daily transactions on the network has dropped to 5.69 million, according to data from the Shibarium Explorer. This is a significant decline from the average of 7 million transactions per month that was recorded last month. From the start of the year, when daily transactions were reported at 7.84 million on December 28, 2023, to a sharp decline to 4.37 million by January 4, 2024, this decreasing trend has continued.
Network Utilization and Block Time
Even with fewer transactions, Shibarium’s network utilization rate is still 27.51%, meaning that the Layer-2 protocol has enough bandwidth to handle more transactions than it is now. An enhanced block time is an additional beacon of hope. Block times are now recorded at 5.0 seconds, less than a week ago at 5.3 seconds. This tells us that Shibarium might be trying to become more efficient even though the number of transactions has decreased. This implies that Shibarium might be aiming to increase its efficiency even in spite of the decline in transaction volume.
Shibarium has facilitated 266,645,659 network transactions involving 1,326,992 registered addresses on the Layer-2 network. These figures demonstrate the scale of activity within the Shiba Inu ecosystem, but the recent decline in transactions raises questions about whether this growth can be sustained.
Notably, there have been 1,326,992 registered addresses on the Layer-2 network through the 266,645,659 network transactions that Shibarium has enabled. Though the recent drop in transactions raises doubts about whether this boom can be sustained, these numbers show the scope of activity inside the Shiba Inu ecosystem.
Surge in Burn Rate
The token burn rate has increased significantly, a noteworthy development in the Shiba Inu ecosystem. Over 53.5 million tokens were taken out of circulation on the most recent day due to an astounding 2,068.92% increase in burn rate. The increase in burning activity is consistent with the Shiba Inu team’s inaugural blog post in early December 2023 about introducing automated SHIB fires.
HOURLY SHIB UPDATE$SHIB Price: $0.00000949 (1hr -0.50% ▼ | 24hr -1.62% ▼ )
Market Cap: $5,582,451,890 (-1.60% ▼)
Total Supply: 589,301,725,195,563TOKENS BURNT
Past 24Hrs: 53,563,480 (2068.92% ▲)
Past 7 Days: 156,205,962 (-68.39% ▼)— Shibburn (@shibburn) January 7, 2024
Moreover, RagnarShib.eth, a member of the Shibarium team, stated in a post that was removed that there would be a 9.25 trillion Shiba Inu token burn in the near future. This bold initiative will use the $1 million worth of BONE—or 101,522,842,639 SHIB tokens—that the team disclosed in late 2023.
#SHIBARIUM team member Ragnar tweets that 9.25 trillion $SHIB can be burned this month
pic.twitter.com/guwhXQwM9Y
— $SHIB BPP (@ShibBPP) January 6, 2024
More than 36 billion of these tokens have already been transferred in several transactions totaling more than 8.5 billion SHIB tokens to non-recoverable blockchain addresses. Their significant burn plan shows Shiba Inu’s commitment to improving token utility and resolving inflation issues.
Impact on SHIB Price
The decline in transactional activity on Shibarium has had a noticeable impact on the price of Shiba Inu. At the time of writing, Shiba Inu has experienced a 5.70% decrease, with its value at $0.000009029. This decline comes after reaching its highest price point of $0.00001089, further indicating the challenges the meme coin faces.
