Shiba Inu: Shibarium transactions decline massively: Will it affect SHIB?

• Shibarium, the Layer-2 blockchain for Shiba Inu, has seen a big drop in transactions by 97%.
• SHIB’s price has increased by 10% over the last month, maintaining its market rank at No. 12 with a $14.6 billion cap.

Shibarium, the Layer-2 blockchain underpinning the popular meme coin Shiba Inu [SHIB], is experiencing a huge drop in transaction activity. 

For about a month now, transaction volumes have plummeted dramatically by nearly 97%. This decline has triggered an examination into the state of Shibarium and its potential impact on SHIB’s price.

Despite these challenges, the overall transaction volume on Shibarium since its launch last August reflects a total of 417,479,277 transfers, so there is a slow but steady growth in activity, year-on-year.

A closer look at the tumble

The transaction peak on Shibarium reached an all-time high of 562,990 daily transactions on the 17th of April. Fast-forward to today, and the figure has drastically fallen to just 11.

Source: Shibariumscan.io

The press time price of Shiba Inu stood at $0.0000248, with SHIB maintaining its position as the 12th ranked cryptocurrency in terms of market capitalization, which was around $14.6 billion at press time. 

Despite the transaction slowdown, SHIB has seen a price increase of 10% over the past month and a modest 2.44% rise over the last seven days.

These price movements tell us that investor sentiment may still be relatively bullish on the second-largest meme coin.

The press time market sentiment towards Shiba Inu, as indicated by technical indicators, remained overwhelmingly bullish with an 83% bullish

Additionally, the Fear & Greed Index shows a score of 73, classified under ‘Greed’. The bulls were still in control.

How SHIB is doing now

Coinglass data showed that there has been a 19.24% drop in trading volume, coupled with a slight 1.58% decline in Open Interest.

This reflected reduced trading activity and potentially waning short-term interest among traders.

Source: Coinglass

The recent market activity for SHIB demonstrates a tug-of-war between bulls and bears, as shown by the inconsistent trading volumes and uncertain market sentiment.

Read Shiba Inu’s [SHIB] Price Prediction 2024-2025

Given the current inconsistency and volatility shown in the chart, SHIB might continue to experience fluctuations with a slight bearish bias in the short term. 

Investors and traders should watch for either a sustained break below the 0.00002475 support or a rebound that pushes past the recent high for clearer direction.

Source: TradingView