Shibarium, the layer-2 blockchain of the Shiba Inu (SHIB) ecosystem, is battling to stay active. Shibarium has slipped from hitting transaction milestones to struggling to record any transactions on its platform, a development that could severely impact SHIB.
Shibarium transactions crash from millions to near zero
As per Shibariumscan data, the total daily transactions on Shibarium as of Sept. 16 stood at 11,600. This volume of transactions reflects how low the transaction count has dropped for the L2, whose daily average ranged between 3.5 million and 4 million last month.
However, in the last week of August, daily transaction volume on Shibarium lost momentum, slipping from 1.3 million to 9,590 as of Aug. 28. This pattern has lingered for much of September, with the highest peak so far being on Sept. 5, when it posted 1.26 million transactions.
The low user engagement has greatly affected the transaction count in recent days. In addition, the security breach over the weekend by malicious attackers on Shibarium has probably worsened issues. Although developer Kaal Dhairya reassured the community that the attack to steal millions of BONE tokens was successfully prevented, users’ confidence appears shaken.
This has also impacted the price outlook for Shiba Inu, the ecosystem’s native token. Following reports of the malicious attack on Shibarium, SHIB dipped immediately into the red zone. Unlike on previous occasions where investors accumulated on the dip, market participants did not flock to Shiba Inu.
Shiba Inu price struggles, can burn mechanism help?
With the current near-zero crash in transaction volume for Shibarium, SHIB’s price cannot depend on it to support a rally. It might take a while to rebuild user confidence and for transactions to pick up again.
In the meantime, Shiba Inu might have to rely on other means to boost prices from its low levels. This could involve increasing its deflationary burn mechanism.
As of press time, Shiba Inu was changing hands at $0.00001298, representing a 0.31% decline in the last 24 hours. Similarly, trading volume has dipped by 12.6% to $198.91 million within the same time frame.
Source: https://u.today/shibarium-may-no-longer-turbocharge-shiba-inu-price-rally-heres-reason
