Crypto: Shiba Inu In Crisis, Shibarium Deserted By Investors

The Shiba Inu is going through a tumultuous period, far from the past euphoria of meme coins. While its price struggles to break out of a narrow range, the activity of Shibarium, its layer 2 network, is dangerously waning. The crypto sector is, by nature, dynamic and volatile, but this stagnation directly affects Shiba Inu, as investors turn to new, more promising coins. What is really happening in this ever-evolving universe? 

The Impact of New Meme Coins

The price of Shiba Inu, once at the heart of the craze for meme tokens, now seems stuck. Consolidating around $0.00001718 on October 9, it shows a 21% decrease from its monthly peak.

This stagnation is particularly striking in a context where new meme coins, such as Popcat, Neiro, and SPX6900, are soaring. SPX6900, for example, jumped more than 300% in a week, attracting capital and diverting investors’ attention from Shiba Inu. 

This enthusiasm for new meme coins reflects a marked trend: crypto investors are constantly seeking the next quick wealth opportunity.

Despite its popularity, Shiba Inu faces fierce competition that highlights its own limitations. While the performances of new coins skyrocket, Shiba Inu seems no longer able to offer the same short-term return potential. 

The reasons for this loss of appeal are multiple. First, the meme coin market is saturated and experiences rapid rotations. Then, Shiba Inu faces the challenges of its own crypto ecosystem. This is where Shibarium, a network intended to enhance Shiba Inu’s utility, comes into play. However, far from the expected effect, it seems instead to contribute to the current lethargy of the token.

Shibarium is Slowing Down, and Shiba Inu with It

Shibarium, Shiba Inu’s layer 2 network, was initially supposed to bring renewed vitality by improving transaction speed and scalability.

However, the latest data from ShibariumScan shows a worrying drop in its activity. The number of active accounts has fallen below the 500 mark, and the new accounts created on October 8 are only 33.

This decrease in activity reflects a growing lack of interest, even as Shibarium was intended to be a driver for the Shiba Inu ecosystem.

Transaction fees, once at 0.062 BONE, have dropped to an average of 0.005 BONE, a 91% decrease. Generally, such lower fees could be perceived as good news for users.

However, here they mainly indicate a collapse in the number of transactions on the network. As a result, Shibarium generates less SHIB to burn, a process crucial for reducing the circulating supply and supporting the token’s value.

Moreover, Shiba Inu’s futures market is not doing much better. Open positions have decreased from 70 million to 44 million dollars.

This drop in interest in futures contracts indicates anticipation of weak upward movement, or even distrust of Shiba Inu’s short-term future. 

This simultaneous decline of Shiba Inu and Shibarium could mark a turning point for the meme coin community.

If Shiba Inu fails to revive its utility via its layer 2 network or attract new investors, it risks losing even more ground to more dynamic competitors better suited to speculators’ quest for quick gains.

In the end, the fate of Shiba Inu and Shibarium will depend on their ability to reinvent themselves and convince the crypto community once more. Otherwise, history might just relegate them to a mere fad, overtaken by newer, more flamboyant stars in the meme coin world.