Shibarium, Shiba Inu’s Layer-2 blockchain, has seen an unprecedented collapse in activity, with daily transactions plummeting by 99% in just a week. On February 14, Shibarium recorded 4.64 million daily transactions. By February 21, that number had fallen to just 52,410, according to blockchain data from Shibariumscan. The dramatic decline comes as SHIB, the ecosystem’s native token, struggles against a broader market downturn.
SHIB’s price has dropped 8.09% in the last week and 22.81% over the past 30 days, falling from $0.00001667 to $0.00001487. A brief rebound attempt met resistance at $0.0000160, triggering renewed selling pressure.
As of February 22, SHIB is trading at $0.00001543, down 2.14% in the last 24 hours, even as its trading volume has surged 42.60% to $247.17 million.
The sharp decline in both price and transaction volume indicates waning investor confidence in the Shibarium ecosystem.
Investor Disengagement and Network Impact
The crash in transaction count suggests a significant drop in user engagement within the SHIB community. Analysts point to the bearish market sentiment as a major factor behind the declining activity.
Historically, SHIB’s price and on-chain activity have moved in tandem, with rising prices fueling increased transactions. The recent downturn has reversed that trend, leading to widespread disinterest among retail traders and developers.
Another concerning factor is the lack of participation from SHIB whales. Large holders, who often dictate market momentum, have drastically reduced their activity.
Whale transfers on Shibarium have plunged by 93%, reflecting a broader reluctance to transact on the network. This disengagement raises questions about the long-term viability of the ecosystem if participation remains low.
The steep drop in Shibarium transactions poses a challenge for its developers, who must now work to reignite interest in the network. Experts suggest that increased utility, new partnerships, and token incentives could help revive engagement. Without a concerted effort, Shibarium risks further stagnation as traders seek opportunities in more active blockchain ecosystems.
