- On the weekly charts, Shiba Inu’s price is down by more than 9%. This is despite the huge expectations before the Shibarium launch.
- The layer 2 network (Shibarium) is suffering from decreasing TVL.
The Shibarium is a layer 2 blockchain that was to spur Shiba Inu’s price into a massive bullish rally. However, the layer 2 protocol didn’t live up to the expectations. Here’s what happened.
Shiba Inu’s Price Fall Despite the Shibarium’s Growth
- Since the relaunch of the Shibarium, there’s a significant level of development on the new layer 2 blockchain. However, Shiba Inu’s price, on the other hand, is on a free fall despite the increase in the layer 2 blockchain. This is quite the opposite of what many enthusiasts expected with the launch of the layer 2 protocol. So, there were expectations that the launch of the Shibarium would play a huge role in driving Shiba Inu’s price forward. But at the moment, there’s no significant influence.
- At the time of writing, Shiba Inu’s price is currently in the $0.000007466 range. However, there are chances that it might decrease even further. The price of this meme coin is down more than 2% in the past 24 hours. So, it initially appeared like the bulls had something doing in the charts before the bears entered.
- It seems worse in the weekly charts. In fact, Shiba Inu’s price is down by over 9% over the week. This is within the period when the Shibarium had its peak transactions and wallet address registrations.
Why is Shiba Inu’s Price Falling?
- The number one thing causing the price decline despite the positive outlook of the Shibarium is negative sentiments. Apparently, many traders and investors are still wary of what happened with meme coins like PEPE. So, they are a bit reluctant to go all out for the Shiba Inu token.
- Another thing is that despite some positive growth in the Shibarium, it is lacking in some critical areas. So, one of them is the TVL. The TVL suffered stunted growth since the launch of the layer 2 protocol. Apparently, this, in turn, is affecting Shiba Inu’s price. At the time of writing, the Shibarium’s TVL ranks 122, with less than $1 million TVL.
Overview of the Growth in the Shibarium
- Many parts of the Shibarium saw a large amount of growth. However, the two that stand out are the growth in number of transactions and wallet address registrations.
- The total transactions on the Shibarium are now more than 1 million. On the other hand, the number of wallet addresses registered on this layer 2 protocol is more than 1.1 million. Nevertheless, there’s still a decline in TVL.
Conclusion
The Shibarium was a representation of hope for many Shiba Inu enthusiasts. So, there were beliefs that it would increase Shiba Inu’s price. But the reverse is currently the case, with SHIB falling to new lows. So, negative investor sentiments and decreasing TVL are part of the causes.
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The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company
