According to Petar, head of content at CaptainAltcoin, the examination of key adoption metrics on SHIB’s layer 2 network, Shibarium, reveals some worrying early trends that could negatively impact the broader SHIB ecosystem if not turned around.
What you'll learn 👉
Key Adoption Issues Highlighted
- Declining daily active accounts: down over 90% from the 9k peak to just 600 currently
- Stagnant account growth so far in 2024
- Significantly lagging transaction volume compared to benchmarks like Solana at equivalent stages post-mainnet launch
- General lack of user traction
Per the analysis, Shibarium’s daily active accounts have cliff-dived from a peak of 9,000 shortly after launch down to just 600 currently—a monumental 90% drop. For any blockchain network, especially a nascent one like Shibarium trying to build sustainable community adoption, such a severe bleed in participation levels is extremely alarming.
Stalled User Base Expansion
Exacerbating matters, 2024 has shown essentially zero incremental account growth on Shibarium so far. Compared to benchmark networks like Solana, which boasted millions of new addresses within six months post-launch, Shibarium’s stagnating, minimal user base indicates a lack of organic adoption and network effects.
Viral, enthusiastic user growth represents the lifeblood of blockchain networks. Its absence on Shibarium, despite leveraging the popular SHIB brand, renders the fundamental outlook worrying.
Lagging Transaction Volumes
Through six months live, Shibarium has facilitated just 284 million total transactions, compared to 818 million on Solana in its first six months. Besides reaffirming the issues around lacking an active community to drive engagement, the massive differential in transaction volumes underscores Shibarium’s failure to attract decentralized applications, which serve as the engine for chain activity.
No users and no dApps result in the current depressed state of network usage. This directly impacts the investment case for SHIB and ecosystem tokens like LEASH and BONE, as Shibarium was touted as their savior.
While only in its infancy stages, Shibarium’s early adoption trends already show signs of fading community interest. Without rapid improvements driving user expansion, transactions, and developer activity, the original hype and vision for Shibarium revolutionizing the Shiba Inu ecosystem lose credibility. These metrics should remain front of mind for SHIB investors assessing the sustainability of current prices.
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