Shiba Inu’s recently launched layer-2 scaling solution, Shibarium, has seen a steep decline in daily transactions over the past couple weeks. After peaking at over 200,000 transactions per day in early September, volume on Shibarium has dropped over 90% to around 16,000 transactions currently.
This declining usage is worrying for a project meant to help scale Shiba Inu’s ecosystem. The lower transaction volumes also limit Shibarium’s ability to burn large amounts of SHIB tokens via gas fees, which was a key part of the network’s value proposition.
Some possible reasons for the drop-off include early technical issues that deterred users, a lack of compelling dApps launched so far, and broader crypto market weakness weighing on hype and activity levels.
While concerning in the short term, the Shiba Inu team argues this is just an early bump as Shibarium matures. Lead developer Lucie recently assured the community that updates are coming to strengthen the network.
Still, Shibarium’s adoption levels in these initial months will be critical if it is to become an integral part of the Shiba Inu ecosystem and drive value for SHIB investors. The coming weeks will be telling as to whether the network’s slowdown is just a temporary blip or more systemic issue.
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