User activity on Shiba Inu’s (SHIB) layer-2 (L2) platform Shibarium continues to decline, with demand on the network falling to a one-month low on Monday.
This came despite the continued decline in value of Bone ShibaSwap (BONE), the token used to pay transaction fees on the network. BONE’s value has plummeted by over 11% in the past month, but this hasn’t done much to attract users to L2.
Shibarium can’t keep its users
Shibarium is an L2 blockchain built on top of the Ethereum network that aims to improve the Shiba Inu ecosystem. According to data from Shibariumscan, user activity on the L2 has been steadily declining over the past few days.
On Monday, the daily number of unique addresses that completed at least one transaction on Shibarium was 321, marking the network’s monthly low. This decline began after the network’s number of active addresses rose to 1,898 on August 1.
In addition, demand for Shibarium has also dropped, with only six new addresses created on the network on Tuesday, a 98% drop from the 361 new addresses that used Shibarium on August 1.
Read more: Shiba Inu – A Guide for Beginners
Due to the decline in the number of new accounts on the network, the number of new transactions also fell. On Tuesday, it stood at 2,440, a decrease of 39% from the 4,006 new transactions recorded the previous day.
SHIB Price Prediction: Whales begin to say goodbye
While the broader market is battling a downturn, SHIB whales have been reducing their holdings, as can be inferred from the 67 percent drop in net flow from large holders of the meme coin over the past seven days.
Large holders are whale addresses that hold over 0.1% of an asset’s circulating supply. Their net flow tracks the difference between the coins they buy and the amount they sell over a given period of time.
When the net inflow of large holders of an asset decreases, whales sell their tokens. This is a bearish signal that could also cause retail traders to distribute their holdings, putting further pressure on the coin’s price.
If SHIB whales continue to sell, the price could drop to $0.000010.
Read more: The 12 Best Shiba Inu (SHIB) Wallets in 2024
However, if the selling pressure subsides and buying activity gains momentum, the above pessimistic thesis will become invalid as the value of the meme coin would rise to $0.000018.
Disclaimer
Per the Trust Project’s guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions can change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy and Disclaimer have been updated.
