The Shiba Inu Shibarium reaches another key milestone, what does it mean for SHIB?

TL;DR

The Shiba Inu Shibarium achieved a new goal, indicating strong user engagement. Despite this, SHIB’s price has fallen recently, although some analysts see potential for a rally. Moving on to the next goal

The Shiba Inu team launched Shibarium (a Layer 2 blockchain solution) to improve the scalability, speed and profitability of transactions within their ecosystem. The network saw the light of day in August last year, achieving significant success in the first months of its existence.

Daily transactions on the protocol were in the millions, while the number of active accounts was also substantial, meaning high user engagement. Shibarium halted its progress in the second quarter and third quarter of this year before witnessing another resurgence in recent days. Recall that the combined processed transactions on October 22, October 23 and October 24 reached almost 10 million.

This resulted in a massive new milestone for the L2 scale solution, with total transactions exceeding 430 million. The data shows that wallet addresses are approaching 2 million, while total blocks have exceeded 7.5 million.

Shibarium implemented essential updates over the past few months to improve the user experience and introduce other benefits. In April, the team released a new user interface (UI) update, describing it as “faster, smoother, and more accessible than ever.” Its main goal was to enable better compatibility with popular self-custodial wallets such as Coinbase Wallet, MetaMask, Trust Wallet and others.

Shortly thereafter, the protocol underwent another upgrade via a hard fork. It aimed to improve the user experience, implement faster block processing times, and empower the developer and innovator community.

SHIB price reaction

The subsequent advancement of Shibarium is often touted as a factor that could positively affect the Shiba Inu price. However, the meme coin has underperformed lately, with its valuation falling more than 6% in the past week.

SHIB Price, Source: CoinGecko

According to crypto analytics platform Santiment, SHIB was among the top 10 cryptocurrencies involved in the most bearish narratives on October 23 (the day the digital asset market experienced a major correction). The entity, however, stated that the negative sentiment could be a precursor to a short-term manifestation:

“Markets tend to move in the opposite direction of the crowd’s expectations, meaning bearish narratives surrounding these coins can lead to rewarding results for those willing to go against the crowd’s selling that starts to increase”.

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