Why SHIB hasn’t responded to Shibarium’s new milestone

• Shiba Inu was down by more than 6% last week, as were BONE and LEASH.
• SHIB’s market sentiment was bullish, but selling pressure remained high. 

Shiba Inu’s [SHIB] much-talked-about Layer 2 Shibarium recently reached another milestone.

Though the latest achievement reflected high usage of the network, the blockchain’s native tokens did not benefit from it, as they remained under bears’ influence over the last few days.

Shibarium reaches new highs!

Shibarium has remained a popular topic of discussion in the crypto community since its launch earlier in 2023.

The L2 has gained immense popularity over the months and has recently crossed the 300 million mark in terms of total transactions, further proving its high usage.

#SHIBARMY is driving #Shibarium to new heights. This rollercoaster truly has only one direction: UP! 🚀 pic.twitter.com/c0pNpxHgf5

— Shib (@Shibtoken) January 22, 2024

While the L2’s total transactions crossed the $300 million mark, its total wallet addresses crossed 1.3 million.

As per Shibariumscan.io, the L2 has processed more than 2.7 million blocks with an average block time of five seconds.

At press time, Shibarium had completed over 303 million transactions and had a 2.69 million daily transaction count.

Source: Shibariumscan.io

Shiba Inu is falling behind

Shiba Inu’s price action did not correspond to Shibarium’s growing pace, as the meme coin’s price chart remained red, thanks to the bearish market condition.

According to CoinMarketCap, SHIB was down by more than 6% in the last seven days. At the time of writing, it was trading at $0.000009015 with a market capitalization of over $5.3 billion.

Though SHIB’s price action was bearish, its social metrics soared. In fact, Shiba Inu was named the top coin of the day in terms of social activity on the 22nd of January.

⚡️Coin of the day by social activity – @Shibtoken $SHIB

Shiba Inu #SHIB is a decentralized meme token based on the Ethereum blockchain. It has also developed Shibarium, an Ethereum layer-2 scaling solution built on a proof-of-participation (PoP) consensus. pic.twitter.com/1E1nkGJ7of

— 🇺🇦 CryptoDep #StandWithUkraine 🇺🇦 (@Crypto_Dep) January 22, 2024

AMBCrypto, upon checking Santiment’s data, found a similar trend. Our analysis revealed that Shiba Inu’s social volume spiked substantially over the last few days.

It was also interesting to see that despite a price drop, sentiment around SHIB turned bullish, as evident from the rise in its Weighted Sentiment.

Source: Santiment

Nonetheless, the possibility of a trend reversal in terms of price did not seem likely, as several metrics remained bearish. For instance, SHIB’s exchange inflow spiked sharply on the 23rd of January.

This meant that the selling pressure on the meme coin was high at press time. Additionally, whales seemed to show little interest in SHIB over the last week, as its supply held by the top addresses graph remained flat.

Source: Santiment

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Apart from Shiba Inu, other ecosystem tokens like Bone ShibaSwap [BONE] and Doge Killer [LEASH] also shared a similar fate. BONE witnessed a double-digit decline last week as its value plummeted by over 14%.

At press time, it was trading at $0.5615 with a market cap of over $129 million. LEASH’s chart was also painted red as its value sank by over 6% last week and was trading at $267.45.