Layer-2 network Shibarium processed an impressive over three million transactions in less than a month. This remarkable success demonstrates significant adoption of the network relatively quickly.
Shiba Inu's team argues that developments "behind closed doors" will soon further help Shibarium "demonstrate its strength and stability."
Shibarium user adoption is on the rise
After addressing initial launch issues, the network demonstrated significant performance improvements across key metrics. The protocol engaged more than 1 million wallets in the first week post-launch, and as of the last update, this number reached 1.25 million. Additionally, the network has processed more than 3 million transactions, 3,085,075 at the time of this writing.
However, it is noteworthy that daily transactions on the network have experienced a decline recently. According to data from ShibariumScan, average daily transactions on Shibairum between September 8 and September 15 exceeded 100,000. In contrast, the latest data shows a decline of around 40,000 transactions over the past few days.
Shina Inu lock-in total drops
The recent decline in trading volume is consistent with the declining value of assets locked in Shibarium. Shibarium's Total Value Locked (TVL) has decreased since it peaked at $1.27 million on August 29, according to DeFillama's data.
This reduction in daily transactions and TVL raises concerns for the network, especially in the face of a growing number of layer-2 networks.
Over the past two months, the cryptocurrency industry has witnessed the emergence of Base, a network powered by Coinbase, and the conversion of several layer-1 networks to layer-2. Increasing competition has the potential to impact operations at Shibarium.
Shibarium's ability to succeed may reflect whether the meme coin Shiba Inu will have real utility. This increased activity contributed to a significant increase in the burn rate for SHIB. Latest data from ShibBurn reveals that 784 million SHIB tokens have been burned in the last seven days, a significant 47.7 percent increase in the burn rate.
