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Shiba Inu’s (SHIB) Layer 2 Platform Shibarium Witnesses Decline in User Activity

2 mins
Updated by Ryan Boltman
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In Brief

  • Shiba Inu's Layer 2 platform, Shibarium, has experienced a significant decline in user activity, with new accounts dropping by 93% and transactions reaching a monthly low.
  • Despite this, Shiba Inu's price has risen 8% in the past week, with strong buying pressure indicated by the Chaikin Money Flow indicator.
  • If the current trend continues, SHIB’s price could rally to $0.00001767.
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The demand for Shiba Inu’s (SHIB) Layer 2 (L2) platform Shibarium has plummeted. On July 9, user activity on the network fell to a monthly low.

The number of active and new addresses on the network has trended downward since July 5. As of July 10, the number of new accounts created on the L2 totaled 11.

Users Ignore Shibarium

Shibarium operates as an Ethereum L2 solution designed to improve scalability and transaction efficiency on the Ethereum blockchain. It is built to significantly reduce transaction times and costs.

Data from Shibariumscan has shown a steady decline in user activity on the network in the past few days.

According to the on-chain data provider, the daily count of unique addresses that completed at least one transaction on Shibarium totaled 504 on July 9, marking the network’s monthly low.

The drop in active address count on Shibarium began on July 5 and has since declined by 33%. 

Read More: How To Buy Shiba Inu (SHIB) and Everything You Need To Know

Shibarium Active Accounts. Source: Shibariumscan
Shibarium Active Accounts. Source: Shibariumscan

Further, the number of new accounts created on the L2 has also dwindled. As of July 10, only a mere 11 new addresses were created on Shibarium, a 93% decrease from the 167 new addresses created on July 5.

Shibarium New Accounts. Source: Shibariumscan
Shibarium New Accounts. Source: Shibariumscan

Due to the fall in new accounts on the network, the number of new transactions has also dropped. On July 9, it fell to a monthly low of 3,400.

SHIB Price Prediction: Meme Coin Sees Surge In Liquidity Inflow

Following an extended period of decline, Shiba Inu (SHIB) might be poised for a rally. The meme coin’s price has risen 8% in the last week. As of this writing, the coin trades at $0.00001656.

The coin’s Chaikin Money Flow (CMF) has maintained an uptrend in the past few days, confirming that the price rally is backed by actual demand from market participants. This indicator measures how money flows into and out of an asset.

When an asset’s price rises along with its CMF indicator, it typically signals strong buying pressure and positive momentum. Significant volume supports the upward price movement, indicating that the price rise is more likely to be sustainable.

If this trend continues, SHIB’s price might rally to trade at $0.00001767.

Read More: Shiba Inu (SHIB) Price Prediction 2024/2025/2030

Shiba Inu Analysis
Shiba Inu Analysis. Source: TradingView

However, if profit-taking activity commences at this level, the coin’s price might drop to $0.00001651.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Abiodun Oladokun
Abiodun Oladokun is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including decentralized finance (DeFi), real-world assets (RWA), artificial intelligence (AI), decentralized physical infrastructure networks (DePIN), Layer 2s, and meme coins. Previously, he conducted market analysis and technical assessments of various altcoins at AMBCrypto, utilizing on-chain analytics platforms like Messari, Santiment,...
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