User activity on Shiba Inu (SHIB)’s Layer 2 (L2) platform, Sibarium, continues to decline, with network demand plummeting to a monthly low on Monday.
This comes despite the prolonged decline in the value of Bone ShibaSwap (BONE), the token used to pay transaction fees on the network. BONE’s value has plummeted by more than 11% in the past month, but this hasn’t done much to attract users to L2.
Sibarium Fails to Retain Users
Shibarium is a L2 blockchain built on top of the Ethereum network, designed to improve the Shiba Inu ecosystem. According to data from Shibariumscan, user activity on L2 has been steadily declining over the past few days.
The daily count of unique addresses that completed at least one transaction on Shibarium on Monday hit a monthly low for the network, at 321. This decline began after the network’s active address count rose to 1,898 on August 1.
There has also been a decline in new demand for Shibarium. On Tuesday, only six new addresses were created on the network, down 98% from the 361 new addresses created using Shibarium on August 1.
Read more: Shiba Inu – A Beginner’s Guide
The number of new transactions also decreased due to the decrease in new accounts on the network. On Tuesday, there were 2,440 new transactions, a 39% decrease from the 4,006 new transactions recorded the previous day.
SHIB Price Prediction: The whales start to leave
As the overall market suffered a downturn, SHIB whales have been reducing their holdings, as evidenced by the 67% net flow decline among large holders of the meme coin over the past seven days.
Large holders are whale addresses that hold more than 0.1% of the asset’s circulating supply. Their net flow tracks the difference between the coins they bought and the coins they sold over a certain period of time.
When the net flow of large holders of an asset decreases, whales sell their tokens. This is a bearish signal, which can cause retail traders to distribute their holdings, putting further downward pressure on the coin price.
If SHIB whales continue to sell, the price may crash to $0.000010.
Read more: 12 Best Shiba Inu (SHIB) Wallets in 2024
However, if selling pressure decreases and buying activity gains momentum, the above bearish argument will be invalidated and the value of the meme coin will rise to $0.000018.
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