- SHIB’s price was $0.000024, indicating that the token was not responding to activities on the L2.
- Low TVL and fewer transactions may lead to further declines.
On May 26, AMBCrypto observed that the total block on Shibarium, the layer 2 blockchain of the Shiba Inu ecosystem (SHIB), was close to 5 million.
Specifically, the total number of blocks was 4.91 according to Shibariumscan data. Blocks are files used to store transaction data on the blockchain.
More blocks, fewer transactions
For a block to be confirmed, a transaction must be validated. Therefore, the increase in the metric testifies to the improvement of validator activity on the Shiba Inu network.
Additionally, the total transactions on the network since its inception have exceeded 417 million. However, the number of transactions at the time of publication was 7,930.
This figure represents a significant drop from the daily figures formerly recorded on Shibarium.
Source: Shibariumscan
Despite the drop in network activity, the price of Bone ShibaSwap (BONE) increased by 3.41% in the last 24 hours. For those unfamiliar, BONE is the flagship token of ShibaSwap.
ShibaSwap is a decentralized exchange that operates on the Shiba Inu ecosystem. While the price of BONE has increased, SHIB has not experienced the same.
At press time, SHIB price was $0.000024. This was the same region the token was floating in for the past two days.
Besides the price, AMBCrypto checked whether the proximity of the Shibarium affected other parts of the Shiba Inu.
The new players haven’t arrived yet
From our assessment, not much happened. For example, a review of network growth showed that the metric has declined. On May 25, the metric was 1881.
However, as of this writing, that number has dropped to 446. Network growth indicates the number of new addresses transacting on the network for the first time.
If the chart below had shown an increase, it would have implied better traction for Shiba Inu. However, the decrease means that SHIB adoption has not been impressive in recent times.
Source: Santiment
Another measure facing a similar situation was the circulation of the Shiba Inu. According to Santiment data, the daily circulation fell to 293.55 billion, although it reached a weekly high of 3.31 trillion on the 22nd.
This drop implied that fewer SHIB tokens had been engaged in transactions recently. For the price, this could be a good development as it would mean less selling pressure.
Additionally, AMBCrypto verified the total value locked (TVL) of Shibarium. TVL measures the monetary value of assets locked or staked in a blockchain protocol.
Realistic or not, here is the market capitalization of BONE in SHIB terms
According to DeFiLlama, Shibarium’s TVL stood at $2.17 million, a notable drop from its April high. This decline suggests that market participants do not perceive blockchain as a means to generate good profits.
Source: DeFiLlama
If this remains the case, the number of transactions on the network could continue to decline. Additionally, an increasing number of blocks might not imply better traction for Shibarium, as well as Shiba Inu.
News Source : ambcrypto.com
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