The Shibari networkan Ethereum Layer 2 network that was developed and launched by the Shiba Inu team, performed well after its initial launch in August 2023. However, less than a year after its launch, the Layer 2 network has gone through some tough times, losing market share to larger counterparts. This has led to a decline activity for the network As a whole, and so far this week, the Shibarium network has seen a huge decline in active accounts.
Shibarium active accounts drop 80.3% in 4 days
O Shibari Network Shibarium is currently struggling with blockchain adoption, as its Layer 1 parent blockchain, Ethereum, is battling the likes of Solana to retain its users. Additionally, Ethereum Layer 2 networks like Base by Coinbase have also attracted a fair number of decentralized finance (DeFi) users, putting them ahead of Shibarium.
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As a result, the Shibarium network was unable to retain users, leading to a decline in active addresses. According to data According to ShibariumScan, active accounts at the start of the week, on Sunday, July 21, were at just 667. As the week progressed, that already small number dropped even further.
As of Wednesday, July 24, the total number of active accounts registered on the Shibari network was only 131. This means that between Sunday and Wednesday, the total number of active accounts on Ethereum Layer 2 Network fell 80.3%.
Along the same lines, there was also a notable decline in new transactions. This metric recorded a total of 6,353 transactions on Sunday. However, on Wednesday, the numbers dropped to 1,023, representing a drop of approximately 84%.
Similarly, the number of new blocks mined dropped by 66.6%, from 17,220 on Tuesday to 5,739 on Wednesday. All this shows that interest in the Shibari network is completely inactive, with the number of new accounts created being just 11 on Tuesday, July 23rd.
Playing with the big dogs
While the popularity and success of Shiba Inu over the years has contributed to the hype surrounding the Shibarium network, it has failed to live up to the hype of the application. When it comes to Ethereum Layer 2 networks that launched between 2023 and 2024, the Shibari network does not compare to these other players.
Currently, the Total Value Locked (TVL) on the Shibarium network is just $1.5 million, according to data from DeFiLlama. In contrast, Coinbase Core Network was launched in the same month of August 2023, as Shibarium currently has $2.175 billion in TVL.
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The Linea Network was launched a few months before Shibarium in March 2023, and the Layer 2 network currently has a TVL of $1.198 billion. Similarly, the BLAST network, which launched much later in February 2024, has $1.47 billion in TVL.
What this suggests is that the Shibarium network may have failedgiven its incredibly low usage. However, there is always the question of whether the Layer 2 network will be able to rise from the ashes and become a major DeFi contender once again.
Featured image created with Dall.E, chart from Tradingview.com