Shiba Inu layer-2 blockchain, Shibarium, is facing scrutiny as on-chain data highlighted slowing network activity, limited token burns, and stagnant holder growth.
The slowdown comes as $SHIB’s price continues to underperform. The meme coin is trading at low levels last seen in 2021, while investor attention shifts toward artificial intelligence-related crypto projects.
Shibarium Network Activity Cools
Recent data from ShibariumScan suggests network activity has slowed considerably compared to the expectations that surrounded Shibarium’s launch.
The blockchain has processed more than 1.56 billion transactions and created nearly 270 million wallet addresses since going live. However, daily transaction volume has fallen to around 1,170 transactions. That marks a sharp decline from earlier periods of stronger activity.
The slowdown has fueled concern within the Shiba Inu community.
Shiba Inu Burns Fall Short of Expectations
Critics have also pointed to the pace of $SHIB token burns. According to Shibburn data, about 410.84 trillion $SHIB have been burned since the token launched. That represents roughly 41.08% of the original 1 quadrillion supply.
However, burn activity linked specifically to Shibarium remains relatively modest. Around 1 billion $SHIB have reportedly been burned through the layer-2 network, despite expectations that Shibarium would significantly accelerate the burn mechanism.
Recent burn data shows about 2.32 million $SHIB were burned over the past 24 hours. Around 19.35 million were burned during the past week, while roughly 110.02 million were removed over the last 30 days.
Supporters have long viewed Shibarium’s ecosystem as a catalyst for increasing $SHIB burns through transaction fees. So far, however, burn levels remain well below expectations seen when the network launched.
Holder Growth and Price Remain Weak
Critics also argue that wallet growth has stalled. $SHIB’s holder count has reportedly remained around 1.5 million for roughly 18 months.
$SHIB’s price has also stayed under pressure. The token is trading at approximately $0.0000054. It is down 5.5% over the past week, 22% over the past month, 63% over the past year, and about 95% below its all-time high.
The combination of slowing network activity, modest burn rates, stagnant holder growth, and a declining price has led some market participants to question whether Shibarium can still become the ecosystem’s long-awaited utility engine.
Others remain optimistic. Future ecosystem upgrades, new decentralized applications, additional partnerships, and a crypto market recovery could revive activity.
