Shibarium, the Ethereum-based layer-2 scaling solution, surprised the crypto community with a dramatic rise in transactions last week. The protocol reached a yearly high, with transaction counts soaring to 4.77 million. However, this spike has since tapered off, according to data from Shibariumscan.
Data from Shibariumscan shows the transaction count plummeted by 85% within just 24 hours, falling from 4.76 million on October 26 to 699,690. This swift decrease marks a notable reversal after the protocol’s recent surge, with many in the community attributing the high activity to Shiboshi NFT users bridging their assets to Shibarium.
Source: Shibariumscan
NFT Bridging Drives Activity Spike
Shibarium’s high transaction count largely stemmed from Shiba Inu community members bridging their Shiboshi NFTs to the network. This influx of users tested the network’s functionality, as the bridging tool, previously used mainly to burn SHIB, saw increased activity. This bridging boost drove a temporary transaction spike, likely indicating most NFT holders have completed their transfers.
Related article: Will Shiba Inu (SHIB) Overcome Resistance Levels After Shibarium’s Growth?
The sharp decline in Shibarium’s transaction count suggests that bridging activity has slowed as most Shiboshi NFT owners have likely completed their transfers. Concentrated activities often drive sudden transaction booms, and without ongoing bridging, the transaction trend has quickly reversed. Many in the community anticipated this decline, understanding that activity spikes are often temporary when fueled by specific user actions.
Shibarium’s Position in the Shiba Inu Ecosystem
Shibarium remains central to the Shiba Inu ecosystem, and its recent transaction boom had raised hopes it might outperform competitors like the Base Network. However, with transaction numbers falling, the potential for Shibarium to surpass rivals may take longer to realize.
Related article: Shiba Inu Sees Whale-Induced Growth: What’s Next for SHIB?
Despite this setback, Shytoshi Kusama, has promised new product launches that may support sustained growth for the protocol. Shibarium’s development team continues to prepare new products and services, aiming to enhance its role within the Shiba Inu ecosystem.
While the recent transaction spike was short-lived, upcoming releases may offer the protocol new growth opportunities, possibly creating a foundation for lasting expansion in the competitive landscape of blockchain platforms.
