Singapore – The value of the Shiba Inu (SHIB) token remained stagnant at $0.000024 despite developments on the Shibarium layer-2 blockchain. This lack of movement in price could be attributed to a low Total Value Locked (TVL) and a decrease in transaction counts, raising concerns about potential further decreases in value.
Observations on May 26 revealed that the total blocks on Shibarium had reached close to 5 million, with 4.91 blocks recorded according to data from Shibariumscan. The increase in blocks indicated improved validator activity on the Shiba Inu network, essential for confirming transactions.
While the total number of transactions on the network had surpassed 417 million since its inception, the current transaction count stood at 7,930, showing a significant decline from previous levels. This decline in network activity did not impact Bone ShibaSwap (BONE) positively, as its price increased by 3.41% in the last 24 hours, contrasting with SHIB’s stagnant price.
The analysis further revealed a decrease in network growth metrics, indicating a decline in new addresses participating in transactions on the network for the first time. Additionally, the circulation of SHIB tokens decreased, suggesting a reduction in token engagement in recent transactions, potentially relieving selling pressure on the token.
Moreover, insights into Shibarium’s Total Value Locked (TVL) showed a notable decrease to $2.17 million from its peak in April. This decline suggested that market participants did not anticipate significant gains from the blockchain, potentially leading to a continued decrease in network transactions.
In conclusion, the lack of movement in SHIB’s price, coupled with decreasing network activity and TVL, raises concerns about the token’s future performance. The ecosystem’s inability to attract new players and declining metrics across various indicators indicate a challenging environment for Shiba Inu and its associated tokens on the blockchain.