Shiba Inu’s response to Shibarium looks bleak – Why?

• Shibarium’s total transactions were also close to reaching the 1 million benchmark.
• SHIB was down by over 2%, while BONE’s value dropped by 22% last week.

Shiba Inu’s [SHIB] Shibarium was quick to reach a milestone that reflected its popularity in the crypto space. Only weeks after launch, Shibarium’s total number of wallets crossed the 1 million mark. Though Shibarium’s adoption was on the rise, Shiba Inu ecosystem tokens were not performing in the best interest of investors, as their charts were painted red. 

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Shibarium reaches a new milestone 

Weeks after the Shibarium launch, Shiba Inu’s much-talked-about Shibarium was quick to scale up its adoption as its total wallets reached 1,010,171. Not only that, but Shibarium’s total number of transactions was also about to reach the same milestone.

At press time, the layer 2’s total transactions stood at 938,971, with a daily transaction count of 100,000. To date, more than 449,000 blocks have been created, with an average block time of 5 seconds. 

Source: Shibariumscan.io

LUCIE, an official Twitter handle that posts updates related to the Shiba Inu ecosystem, recently revealed that Shibarium has started to utilize more stablecoins such as USDT, USDC, and DAI. An expansion in stablecoin utilization can have a positive impact on the layer 2 as it can help increase network usage and adoption over the coming weeks. 

SHIB and BONE are under pressure

Though Shibarium reached new highs, SHIB’s performance was underwhelming for the last couple of days. The memecoin’s social volume declined over the last week, suggesting that it was not a topic of discussion in the crypto community.

Moreover, negative sentiment around the token was also high, as evident from the dip in its weighted sentiment. 

Source: Santiment

The memecoin’s price action was also under the bears’ control. According to CoinMarketCap, SHIB was down by more than 2.5% over the last week. At press time, it was trading at $0.000007764 with a market capitalization of over $4.5 billion.

Nonetheless, Shiba Inu remained whales favorite as Whalestats’ data revealed that it was the most traded token among the top 100 Ethereum [ETH] whales in the last 24 hours.

SHIB’s exchange reserve was also declining, suggesting that it was not under selling pressure, which could help turn the situation around in the coming days.

Bone ShibaSwap [BONE], which is one of the main tokens for Shibarium, was also under pressure as its value dropped by over 22% last week. At the time of writing, it was trading at $1.05 with a market cap of over $240 million. Santiment’s chart pointed out a bearish price volume divergence. 

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BONE’s supply on exchanges increased while its supply outside of exchanges dropped slightly. This indicated that investors were selling their holdings, causing BONE’s price to drop. Another bearish metric was BONE’s network growth, which plummeted last week.

Doge Killer [LEASH] also followed a similar declining trend as its value dropped by over 16% last week, which was concerning for the entire Shiba Inu ecosystem. 

Source: Santiment