Shiba Inu’s team has emphasized that developments “behind closed doors” will continue to help Shibarium “demonstrate its strength and stability” in the near future.
After addressing initial launch issues, the network has shown significant performance improvements in key metrics. In the first week after the relaunch, the protocol interacted with over 1 million wallets, now totaling 1.25 million since the latest update.
However, it’s worth noting that daily transactions on the network have recently seen a decline. According to data from ShibariumScan, the average daily transactions on Shibairum from September 8th to September 15th exceeded 100,000. In contrast, recent data shows that the number of transactions has dropped to around 40,000 in the past few days.
The recent decrease in transaction volume aligns with the gradual reduction in the total value locked (TVL) within Shibarium. According to data from DeFillama, the TVL of Shibarium has decreased since reaching its peak of $1.27 million on August 29th.
The reduction in daily transactions and TVL raises concerns for the network, especially as the number of layer-2 networks continues to grow. In the past two months, the cryptocurrency industry has witnessed the emergence of Base, a network supported by Coinbase, and the migration of some layer-1 networks to layer-2. Increasing competition may impact Shibarium’s operations.
The success of Shibarium could reflect whether the Shiba Inu memecoin truly provides utility. This enhanced activity has significantly boosted the burning rate of SHIB. Data from ShibBurn reveals that 784 million SHIB were burned in the last seven days, marking a significant 47.7% increase in the burning rate.