Shibarium Network Activity Plunges as SHIB Token Burns Stall

The Shiba Inu layer-2 blockchain, Shibarium, has faced criticism due to slowing network activity. Data from ShibariumScan shows that daily transaction volume on the platform has fallen to around 1,170 transactions. This marks a significant decline from earlier periods of stronger activity.

Shibarium's goal was to increase SHIB token burns through transaction fees, but burn rates remain modest. According to Shibburn data, about 410.84 trillion SHIB have been burned since the token launched. However, only around 1 billion SHIB have been burned through Shibarium.

The slowdown in network activity and stagnant holder growth have led some market participants to question whether Shibarium can still become the ecosystem's long-awaited utility engine. Despite this, others remain optimistic, citing potential future upgrades, new decentralized applications, additional partnerships, and a crypto market recovery as catalysts for revival.