Good news for Shiba Inu? Shibarium block count nears 5 million

• SHIB’s price was $0.000024, indicating that the token was unresponsive to activities on the L2.
• A low TVL and reduced transaction counts may lead to further decreases.

On the 26th of May, AMBCrypto observed that the total block on Shibarium, the layer-2 blockchain of the Shiba Inu [SHIB] ecosystem was close to 5 million.

Specifically, the total number of blocks was 4.91 according to data from Shibariumscan. Blocks are files used for storing transaction data on the blockchain.

More blocks, fewer transactions

For a block to be confirmed, a transaction has to be validated. Hence, the increase in the metric was a testament to improved validator activity on Shiba Inu’s network.

Furthermore, the total transactions on the network since inception have surpassed 417 million. However, the transaction count at press time was 7,930.

This figure was a significant decline from the daily digits once recorded on Shibarium.

Despite the decline 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 BONE’s price increased, SHIB did not experience the same.

At press time, the price of SHIB was $0.000024. This was the same region the token hovered around for the last two days.

Apart from the price, AMBCrypto checked if the Shibarium closeness has affected other parts of Shiba Inu.

New players are not yet in

From our evaluation, not much has happened. For example, a look at the Network Growth showed that the metric declined. On the 25th of May, the metric was 1881.

However, as of this writing, that number has decreased to 446. Network Growth shows the number of new addresses making a transaction on the network for the first time.

If the chart below had shown an increase, it would have implied improved traction for Shiba Inu. However, the decrease meant that SHIB adoption has not been impressive of late.

Another metric faced with a similar situation was Shiba Inu’s circulation. According to data from Santiment, the one-day circulation was down to 293.55 billion, despite hitting a weekly high of 3.31 trillion on the 22nd.

This decline implied that fewer SHIB tokens have been engaged in transactions lately. For the price, this could be a good development as it would mean less selling pressure.

In addition, AMBCrypto checked Shibarium’s Total Value Locked (TVL). TVL measures the dollar value of assets locked or staked in a blockchain protocol.

Realistic or not, here’s BONE’s market cap in SHIB terms

According to DeFiLlama, Shibarium’s TVL was $2.17 million— A notable decrease from its peak in April. This decline suggested that market participants do not perceive the blockchain as one to yield good gains.

If this remains the case, the number of transactions on the network might continue to decrease. Also, a rising number of blocks might not imply improved traction for Shibarium, as well as Shiba Inu.