The
Shibarium
network,
an
Ethereum
Layer
2
network
that
was
developed
and
launched
by
the
Shiba
Inu
team,
did
well
following
its
initial
launch
in
August
2023.
However,
less
than
one
year
following
its
launch,
the
Layer
2
network
has
run
into
some
hard
times,
losing
market
share
to
larger
counterparts.
This
has
led
to
a
decline
in

activity
for
the
network
as
a
whole,
and
so
far
this
week,
the
Shibarium
network
has
seen
a
major
decline
in
active
accounts.

 

Shibarium
Active
Accounts
Drop
80.3%
In
4
Days

The

Shibarium
network
is
currently
struggling
with
adoption
of
the
blockchain
as
its
parent
Layer
1
blockchain,
Ethereum,
is
fighting
against
the
likes
of
Solana
to
keep
its
users.
Furthermore,
Ethereum
Layer
2
networks
such
as
Base
by
Coinbase
have
also
drawn
out
a
reasonable
number
of
decentralized
finance
(DeFi)
users,
putting
it
ahead
of
Shibarium.

Related
Reading

As
a
result
of
this,
the
Shibarium
network
has
been
unable
to
keep
users,
leading
to
a
decline
in
active
addresses.
According
to

data
from
ShibariumScan,
active
accounts
at
the
start
of
the
week,
on
Sunday,
July
21,
were
sitting
at
a
mere
667.
As
the
week
has
drawn
on,
this
already
small
figure
has
crashed
further
down.

On
Wednesday,
July
24,
the
total
active
accounts
recorded
on

the
Shibarium
network
was
only
131.
This
means
that
between
Sunday
and
Wednesday,
the
total
active
accounts
on
the

Ethereum
Layer
2
network
had
plummeted
by
80.3%.

In
the
same
vein,
there
has
also
been
a
notable
decline
in
new
transactions.
This
metric
saw
a
total
of
6,353
transactions
on
Sunday.
However,
by
Wednesday,
the
figures
had
declined
to
1,023,
representing
an
approximately
84%
decline.

 

Likewise,
the
number
of
new
blocks
mined
dropped
66.6%
from
17,220
on
Tuesday
to
5,739
on
Wednesday.
These
all
show
that
interest
in

the
Shibarium
network
is
completely
down
with
number
of
new
accounts
created
was
only
11
on
Tuesday,
July
23.

Playing
With
The
Big
Dogs

While
the
popularity
and
success
of
Shiba
Inu
over
the
years
played
into
the
anticipation
for
the
Shibarium
network,
it
has
failed
to
live
up
to
the
app.
When
it
comes
to
Ethereum
Layer
2
networks
that
were
launched
between
2023
and
2024,

the
Shibarium
network
doesn’t
hold
up
a
candle
to
these
other
players.

Currently,
the
Total
Value
Locked
(TVL)
on
the
Shibarium
network
is
only
$1.5
million,
according
to

data
from
DeFiLlama.
In
contrast,

Coinbase’s
Base
network
was
launched
in
the
same
month
of
August
2023
as
Shibarium
currently
boasts
$2.175
billion
in
TVL.

Related
Reading

The

Linea
network
was
launched
a
few
months
before
Shibarium
in
March
2023,
and
the
Layer
2
network
currently
has
a
TVL
of
$1.198
billion.
Likewise,
the
BLAST
network,
which
was
launched
much
later
in
February
2024,
has
$1.47
billion
in
TVL.

 

What
this
suggests
is
that

the
Shibarium
network
may
have
failed,
given
its
incredibly
low
usage.
However,
there
is
always
the
question
of
if
the
Layer
2
network
will
be
able
to
rise
from
the
ashes
and
become
a
top
DeFi
contender
once
again.

Featured
image
created
with
Dall.E,
chart
from
Tradingview.com

Go to Source
Author: Scott Matherson

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