Recent price action shows that Shiba Inu (SHIB) is currently underperforming compared to other major cryptocurrencies. Over the past seven days, SHIB has seen a massive drop of 7.26%, while over the past 24 hours, the coin has lost another 2.58%. This decline is particularly noteworthy when compared to the performance of its meme coin counterpart, Dogecoin (DOGE). Unlike SHIB, Dogecoin has seen a strong 12% gain over the same seven-day timeframe.
A key factor in SHIB’s recent underperformance is the notable decline in several key metrics for Shibarium over the past 24 hours. User engagement, transaction volume, and other important metrics for Shibarium, the L2 blockchain network associated with Shiba Inu, have all declined, which may have contributed to the lack of sufficient bullish sentiment towards the token.
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Shibarium Key indicators fall
Built on the Ethereum blockchain, Shibarium is Shiba Inu's layer 2 solution designed to enhance scalability and strengthen the entire Shiba Inu cryptocurrency ecosystem. Interestingly, since its launch last year, Shibarium has been closely correlated with SHIB's price action, often triggering large swings. Historically, SHIB's price has experienced significant gains during periods of increased network activity, driven by increased SHIB transactions and bullish market sentiment.
However, the latest data from Shibariumscan shows that Shibarium has lacked significant activity over the past few days. Specifically, the number of active accounts on the network has dropped sharply. In addition, the number of new transactions on the second-layer network has also dropped sharply.
Is there anything to worry about?
These metrics show that user engagement, trading activity, and SHIB accumulation on Shibarium have dropped significantly, raising questions about the current vitality of the network and its impact on SHIB market performance. The decline in activity may also indicate broader challenges in the Shiba Inu ecosystem, such as waning investor interest in other meme coins and utility tokens.
However, Shibarium has shown remarkable resilience over the years, fostering a large and dedicated community of enthusiasts. The current slowdown in Shibarium activity is likely temporary. As soon as a few whales gather together, or the Shibarium team announces a community update, activity will resume.
On the other hand, some SHIB bulls are working behind the scenes to resume the upward price trajectory. It is worth noting that the destruction statistics show a sharp increase in SHIB destruction, which has surged by 428.88% in the past 24 hours alone, with 60 million SHIB tokens sent to dead wallets. This increased destruction activity is intended to reduce the circulating supply, which may have a positive impact on the long-term price of SHIB.
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