Shibarium, the highly anticipated layer-2 solution for the SHIB army, finally became functional on Aug. 28, following a rocky launch plagued by technical issues that drew scorn from the broader cryptocurrency community. The launch promised a new era of efficiency for SHIB holders who had eagerly awaited this solution for over a year.
However, recent data paints a troubling picture of Shibarium’s current state, with a steep decline in user engagement and network activity levels reminiscent of its early days of operation.
Data from the Shibarium explorer reveals a significant drop in user engagement. On Nov. 6, Shibarium recorded a mere 9,740 transactions, a stark contrast to the network’s peak on Sept. 11, when daily transactions surged to over 202,000. This decline raises concerns about the project’s long-term viability and whether it can deliver on its promises of scalability and efficiency.
Source: ShibariumScan
Shib Name Service (SNS) Launch
The decline in new address counts on the chain appears to be closely tied to the drop in daily transactions. This trend persists despite the introduction of Shiba Inu’s “Shib Name Service” (SNS) on Oct. 30.
SNS, a decentralized naming service, allows users to create human-readable addresses for their Shibarium wallets. While the SNS launch aimed to enhance user experience and accessibility, it has not been able to reverse the declining user engagement on the network.
BONE market cap currently at $169 million. Chart: TradingView.com
Impact On BONE Price
Shibarium’s struggles are not limited to user engagement; they are also affecting the price of the native token, BONE. As of the latest data from CoinGecko, the current price of BONE stands at $0.734137, with a 4.0% increase in the last 24 hours and a 2.5% rise over the past week.
On the token’s spot market, most participants have been distributing their BONE holdings, which is evident from the momentum indicators on a 24-hour chart. Selling pressure is outweighing accumulation, which is concerning for the token’s future value.
BONE 14-day price action. Source: Coingecko
BONE 14-day price action. Source: CoingeckoShibarium’s failure post-launch raise several concerns within the cryptocurrency community. The project’s inability to maintain the initial momentum following a challenging launch is a red flag for investors and enthusiasts. The decline in user engagement, even after introducing user-friendly features like SNS, suggests that the core issues surrounding Shibarium’s technical infrastructure need attention.
@ShytoshiKusama has been selling stuff to shibarmy and amassing their own wallet.
More talk than action, since shib became successful, everything he has done has been a failure (shiboshis, land, Shibarium and sns) Fuk— Mefam (@0xMefam) November 1, 2023
The dwindling user base has a direct impact on the value of BONE, with selling pressure dominating the market. To regain its footing, Shibarium will need to address the technical issues, improve its user experience, and regain the trust and enthusiasm of its user base.
Shibarium, which held significant promise as a layer-2 solution for the SHIB community, is currently facing a critical test of its long-term viability. The decline in user engagement and its effect on BONE’s price indicate that the project has some challenges to overcome. Investors and enthusiasts will be watching closely to see if Shibarium can bounce back and fulfill its potential.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Taokinesis/Pixabay
