Shibarium, a Layer-2 network associated with the popular meme coin Shiba Inu (SHIB), has achieved an impressive milestone by processing over three million transactions in less than a month. This rapid adoption suggests that the network has gained substantial traction in a relatively short period.
High User Adoption and Performance Improvements:
Following initial launch challenges, Shibarium has demonstrated significant performance improvements across key metrics. In the first week after its relaunch, the protocol engaged with over one million wallets, and this number has now surpassed 1.25 million as of the latest update. Notably, the network has processed over three million transactions (specifically 3,085,075) at the time of this report.
However, it’s worth mentioning that the daily transaction volume on the network has experienced a recent decline. Data from ShibariumScan indicates that daily transactions exceeded 100,000 between September 8 and September 15. In contrast, recent data shows a decrease to approximately 40,000 transactions over the past few days.
Declining Total Value Locked (TVL):
The recent drop in transaction volume aligns with a decrease in the total value locked (TVL) within Shibarium. The TVL peaked at $1.27 million on August 29 but has since declined.
This reduction in daily transactions and TVL raises concerns for Shibarium, especially as it faces growing competition from other layer-2 networks.
Competition in the Layer-2 Space:
The cryptocurrency industry has witnessed the emergence of new layer-2 networks in recent months, including Base, backed by Coinbase, and the conversion of several layer-1 networks to layer-2 solutions. This growing competition has the potential to impact activity on Shibarium.
The success of Shibarium could determine whether the Shiba Inu meme coin will have real utility beyond its meme status. The increased network activity has led to a notable rise in the burn rate for SHIB tokens.
Data from ShibBurn indicates that 784 million SHIB tokens were burned in the last seven days, marking a significant 47.7% increase in the burn rate. This suggests an active and engaged user base within the ecosystem.
Conclusion:
Shibarium’s rapid rise in handling over three million transactions in less than a month is a noteworthy achievement. However, the network faces challenges, including declining transaction volumes and TVL, in the face of increasing competition in the layer-2 space. The ability of Shibarium to maintain and expand its user base will be closely watched as it seeks to establish itself as a valuable platform within the crypto landscape.
