Contrary to general expectations, Shibarium is not showing an impressive trend in its total transaction count. Per data from the Shibariumscan explorer, the daily transaction count on Shibarium as of Feb. 9 came in at 526.09K, the lowest recorded figure since the start of the year.
Besides breaking this negative record, the slump in Shibarium transaction count from the peak of 2.93 million recorded on Jan. 28 underscores the ailing health of the Ethereum-based Layer-2 scaling solution. The slump in transaction count is a testament to the fact that Shibarium is not getting as much embrace as it used to.
The current Shibarium transaction slip-off shows a massive deviation from the average of 7 million daily transactions it started recording at its prime toward the end of 2023. While this current outlook proves or reflects the reality of Shibarium embrace, it spells a bad omen for the Shiba Inu ecosystem as a whole.
Despite its record block counts, the declined count can be explained in different ways, including the lack of desired growth on the L2 protocol that might retain users. This also complements the fact that competition in the Ethereum L2 scene is growing tougher, thus making less performant chains like Shibarium lose traction.
Implications for SHIB price
While not quite obvious in terms of actual gains, there is a strong sentimental correlation between Shibarium and the price of Shiba Inu (SHIB). Though the meme coin’s price is relatively flat today with a 0.48% surge to $0.000009379, the dampened Shibarium transaction count might soon trigger a reversal in the asset’s valuation.
Over the past few months, the performance of Shiba Inu has been hinged on many factors encompassing both internal and external, respectively. With the internal factors not holding up, the current attempt to sustain its growth is notably hinged on sentiments in the broader market, a scenario that might prove unsustainable in the long term.