- Shibarium has seen a drop in its network activity.
- Bearish pressure continued to put downward pressure on SHIB’s value.
Shiba Inu’s [SHIB] Layer 2 (L2) network Shibarium has witnessed a reduction in its usage since the year began, data from Shibariumscan showed.
Ecosystem metrics that track user activity on the L2 network have trended downward since the 1st of January.
Shibarium faces decline
According to the on-chain data provider, the daily count of active addresses completing transactions on Shibarium declined to an all-time low of 608 addresses on the 25th of January.
On a year-to-date (YTD), Shibarium’s daily active address has declined by 41%.
Also, new demand for the network has dwindled since the year began. AMBCrypto found that the count of new addresses created daily on Shibarium has shrunk by 83% in the past four weeks.
Due to this, the number of new transactions completed on the L2 network daily has dropped. As of the 27th of January, the number of new transactions executed on the network was 2.65 million.
This was a 66% decline from the 7.84 million new transactions completed a month ago.
As a result of the low demand for Shibarium in the last month, the average cost of completing a transaction on the network has declined significantly.
According to data from Shibariumscan, the L2 users have paid zero BONE for their transactions since the 27th of December.
Source: Shibariumscan
Bears continue to rock the SHIB world
SHIB’s value has dropped by 15% in the last month. At press time, the leading meme coin exchanged hands at $0.000009186, according to data from CoinMarketCap.
Readings from the coin’s price movements on a daily chart showed that it has been in a bear cycle since the 28th of December 2023.
This was when its MACD line (blue) crossed below its trend line (orange), and has since remained in that position.
Also, at press time, SHIB’s MACD line was below the zero line.
When the value of an asset’s MACD is less than zero, it signals that the short-term moving average is below the long-term moving average and that the recent momentum is negative.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
Confirming the negative trend in the SHIB market, its negative directional index (red) at 25.45 rested significantly above its positive directional index (green) which was 14.61 at press time.
Source: SHIB/USDT on TradingView
The coin’s average directional index (yellow) of 31.98 revealed the bearish trend to be a strong one, which the bulls might find challenging to displace in the short term.
