Shibarium Update Fails to Spark Shiba Inu Rally Amidst Declining Metrics
Shiba Inu, the popular meme coin, has largely maintained a low profile in recent weeks, refraining from major announcements. However, the development team has broken its silence with a new update concerning its layer-2 scaling solution, Shibarium. Despite this news, the SHIB token remains in negative territory on both daily and weekly charts, with several indicators suggesting a potential for further decline.
Shiba Inu announced via its official X account that it has rolled out a “small but useful” update for Shibarium. The update involved refreshing its RPC listing in the Ethereum-lists/chains registry, with Chainlist now reflecting the revised connection details.
The move garnered mixed reactions from the community. While some X users praised the update for enhancing access to the protocol, many others dismissed it as insignificant and even labeled the layer-2 scaling solution a scam.
This frustration may be linked to Shibarium’s dwindling activity. Following a security exploit last year, daily transactions on the network have plummeted to the low thousands, and at times, even the hundreds. This sharp decline indicates weak user engagement and could be eroding investor confidence. Prior to the exploit, the network was processing millions of transactions daily.
While Shiba Inu continues to hold its position as the second-largest meme coin, its valuation has seen a 6% drop over the past week. The token is currently trading at approximately $0.000005196, according to CoinGecko. Its market capitalization stands just above $3 billion, ranking it as the 33rd-largest cryptocurrency.
Furthermore, SHIB’s token burning program suggests that bearish sentiment may persist. Data indicates a nearly 90% decrease in the burn rate over the last month, meaning a minimal number of tokens have been permanently removed from circulation. The primary objective of the burning mechanism is to reduce the overall supply of the meme coin, thereby potentially increasing its value through scarcity. However, the current lack of activity in this area presents a significant hurdle to achieving this goal.
Shiba Inu’s seasonal performance also warrants attention. September has historically been a challenging month for the token, with its price closing the period in negative territory in three out of the last five instances. With approximately two weeks remaining in the month, it remains to be seen whether September’s performance will balance out or if bears will further solidify their advantage.
