Why Shibarium’s 3M milestone could not bolster Shiba Inu, BONE

• The number of completed transactions on Shibarium surpassed three million.
• Despite the notable decline in several metrics, SHIB and BONE may recover.

With a total of 26,691 accounts, Shiba Inu’s [SHIB] L2 Shibarium has recorded more than three million transactions since its Mainnet launch. While this landmark may be impressive, not every part of the Shibarium ecosystem has registered notable growth.  

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In fact, the last 30 days have not been encouraging for most metrics on the network.

Nosedives all around

The data coined from the Shibariumscan showed that active accounts, which were as high as 1,015 a month ago, were down to 178 at press time. Also, daily new accounts on the ecosystem had dropped to 17 at the time of writing.

This confirmed the dearth of activity on the network. 

For BoneShibaSwap [BONE], the token with voting functionality on the Shiba Inu network, new transfers have gone from a height of 7,482 on 24 September to 727 as of 8 October.

With the exception of the completed transactions, the state of other metrics depicts the disappointing outcome Shibarium has had despite the preceding hype when it was in development. 

Prior to the L2 launch, there was speculation that the project would be a stimulant for Shiba Inu’s adoption. It was also said that the project could change the sentiment market participants had about SHIB. However, the network’s situation thereafter has been contrary to earlier projections.

Up until press time, SHIB’s 30-day weighted sentiment was down to -0.987. Weighted sentiment combines positive and negative comments about an asset. The result of this combination is used to determine if the market is optimistic or pessimistic about a project.

BONE and SHIB have recovery potential

Shiba Inu’s Weighted Sentiment being in the negative region suggested that most of the unique remarks about the meme were negative. But generally, prices top out when the Weighted Sentiment is too high. Conversely, they bottom when the metric is too low.

Thus, there is a chance that SHIB’s price could recover soon. However, the possible revival of SHIB may also depend on an alternative metric called the Total Amount of Holders.

According to Santiment, the total number of Shiba Inu holders had decreased to 1.33 million. This means that about 100,000 SHIB holders have let go of the token at the time of writing.

This reflected selling pressure and could be a hindrance to the aforementioned potential recovery of the token.

Besides the activity on Shibarium, BONE’s 30-day active addresses also decreased. As of 9 September, active addresses numbered 26,200. At press time, the metric had fallen to 11,300.

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This meant that there have been a lot of unique addresses that have refrained from making transactions on the BONE network.

Circulation also reduced, implying a reduction in the utility of BONE tokens. However, the drop in circulating supply could have a positive effect on the price action since it means selling pressure has also been reduced.