The Shibarium Layer 2 network, launched by the Shiba Inu team in August 2023, is experiencing a dramatic decline in adoption metrics amid broader market challenges. Despite the initial excitement and strong community backing, recent data reveals concerning trends in network participation and user growth that could signal deeper issues for the SHIB ecosystem.
Shibarium Network Activity Shows Alarming Decline
According to data from ShibariumScan, new account creation on the network has plummeted to unprecedented lows. After reaching a peak of 5,111 new accounts on May 6, 2025, the network has seen a staggering 99% decrease in daily new accounts, with recent figures falling below 100 per day.
This sharp decline in new user acquisition comes at a time when Bitcoin has reached new all-time highs above $110,000, highlighting the divergence between Shibarium’s performance and the broader crypto market momentum.
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Key Network Metrics Show Broader Weakness
The decline extends beyond new account creation:
- Active daily accounts dropped from 21,000 to under 15,000
- Daily transactions decreased from 3 million to 1.87 million
- Total SHIB holders declined from 1.4 million to 1.39 million addresses
Price Action Reflects Network Struggles
SHIB’s price action mirrors the network’s declining metrics, with the token trapped in a tight trading range between $0.000014 and $0.000017. Technical analysts suggest the possibility of a breakdown below current support levels if selling pressure continues.
FAQ: Shibarium Network Decline
Q: What caused Shibarium’s sharp decline in new users?
A: Multiple factors including market competition, reduced network incentives, and shifting investor sentiment have contributed to the decline.
Q: Could Shibarium recover from these lows?
A: Recovery would likely require significant protocol improvements, new use cases, or increased network incentives to attract users.
Q: How does this affect SHIB’s long-term outlook?
A: The sustained decline in network metrics could pressure SHIB’s price and ecosystem growth unless addressed by the development team.