Shiba Inu’s Shibarium Plummets: Major Metric Crash Puts SHIB Price in Jeopardy?

Shibarium just hit a wall—hard. The layer-2 solution's key performance indicator nosedives, sparking immediate concerns across the meme coin ecosystem.

Network metrics in freefall

Transaction volumes crater. Active addresses evaporate. The chain's vital signs flash red—no sugarcoating the technical distress.

SHIB's price on the brink

Market sentiment tanks as holders brace for impact. Every percentage drop in network activity tightens the screws on SHIB's valuation. Correlation isn't causation—until it is.

Another 'decentralized' project showing centralized fragility—because nothing says 'financial revolution' like a single point of failure sending portfolios into a tailspin.

Shiba Inu’s Shibarium Suffers Crash In Daily Transactions

Shibariumscan data shows that daily transactions on Shiba Inu’s layer-2 network crashed from just over 4 million on August 23 to 1.09 million on August 24. The crash further extended on August 25 as the network recorded 624,140 transactions on the day, which represented a 2-month low for the layer-2 network. 

Meanwhile, Shiba Inu’s Shibarium recorded 1.76 million transactions on August 26, which is still significantly below the average of 4 million daily transactions it has maintained for some time. This development is typically bearish for the SHIB price, as a decrease in the network’s daily transactions leads to fewer token burns. 

The shiba inu team deploys some of the fees earned on Shibarium for SHIB burns, which helps reduce the token’s circulating supply and could serve as a catalyst for higher prices as demand increases. Notably, Shibburn data shows that the burn rate is down over 87% in the last seven days, with 8.8 million tokens burned during this period. 

However, a positive is that the Shiba Inu burns increased over 500% in the last 24 hours, with 1 million tokens burned during this period. This trend might not be sustainable if the daily transactions on Shibarium continue to drop. Meanwhile, other major metrics on the layer-2 network are also on a downtrend at the moment. This includes the number of active and new accounts, which highlight the network’s growth over a period of time. 

Bullish Case For The SHIB Price

Amid the drop in these Shiba Inu’s Shibarium metrics, crypto analyst Javon Marks has made a bullish case for the SHIB price. In an X post, he stated that the structure of SHIB’s Inverse Head and Shoulders pattern remains intact and is currently in the final shoulder area of it. Based on this, he declared that the meme coin might be on the brink of a substantial surge. 

If the breakout occurs, Marks claimed that the target is over 540% away at $0.000081, which could pave the way into new all-time highs (ATHs) for Shiba Inu. The SHIB price’s current ATH is $0.00008845, which it reached in October 2021. Meanwhile, fundamentals like the Shib Alpha LAYER may help contribute to any potential surge in the SHIB price. 

At the time of writing, the shiba inu price is trading at around $0.00001253, up over 2% in the last 24 hours, according to data from CoinMarketCap.