Shiba Inu’s Shibarium Hits Milestone: Impact on SHIB Price?

Summary

• Shiba Inu’s Shibarium has reached a new milestone, indicating strong user activity.
• However, SHIB’s value has seen a recent drop, although some experts believe a recovery may be on the horizon.

Progressing to the Next Objective

The Shiba Inu team introduced Shibarium, a layer-2 blockchain solution, aimed at enhancing the scalability, speed, and cost-effectiveness of transactions within its ecosystem. Launched in August of last year, it quickly saw notable achievements in its initial months.

The protocol recorded daily transactions in the millions, with a significant number of active accounts, reflecting considerable user engagement. After experiencing some stagnation in Q2 and Q3 this year, it has recently seen a revival. Notably, the total processed transactions on October 22, 23, and 24 nearly reached 10 million.

This surge marked a significant milestone for the L2 scaling solution, with total transactions surpassing an impressive 430 million. Current data reveals wallet addresses are approaching 2 million, while total blocks have exceeded 7.5 million.

Recently, Shibarium has undergone essential upgrades to enhance user experience and introduce additional advantages. In April, the team released a new user interface (UI) update, promoting it as “quicker, smoother, and more accessible than ever.” Its main objective was to enhance compatibility with popular self-custody wallets like Coinbase Wallet, MetaMask, Trust Wallet, and others.

Soon after, the protocol underwent a further update through a hard fork. This aimed to improve the user experience by implementing faster block processing times and empowering the developer community.

Response of SHIB Price

The continued development of Shibarium is frequently cited as a potential positive influence on Shiba Inu’s price. Nevertheless, the meme coin has faced challenges recently, with its valuation dropping by over 6% throughout the past week.

As noted by crypto analytics provider Santiment, SHIB ranked among the top 10 cryptocurrencies associated with the most bearish narratives on October 23 (the day the digital asset market saw a substantial correction). However, the entity also suggested that this negative sentiment might precede a short-term rally:

“Markets generally move in the opposite direction of the crowd’s expectations, indicating that the bearish narratives surrounding these assets may lead to profitable outcomes for those willing to counter the growing selloffs.”