Shibarium, a Shiba Inu Layer 2 network built on the Ethereum blockchain, was released a few months ago. However, there have been significant swings in the performance of the Layer 2 network, which may have a negative impact on the SHIB pricing.
New Blocks Created Crashes
The number of blocks formed on a network typically indicates the network’s usage. The amount of blocks manufactured will increase as activity increases. If blockchain activity decreases, the quantity of new blocks decreases, which is a problem that the Shibarium network has encountered.
ShibariumScan findings show that the amount of new blocks produced on the network has dropped by more than 38% in just two days. Block creation had been consistent throughout October and into November, peaking on November 7. On this day, the network saw the creation of 17,212 blocks.
Read Also: Bitcoin Surges to $37,000, but Traders Still Express Concerns Over Price Action
However, the quantity of new blocks formed has slowly decreased in the days since. Shibarium’s total number of new blocks was 12,655 on November 8, and subsequently dropped to 10,627 on November 9, totaling a 38.25% decline thus far.
At the same time, the average block size on the network has steadily increased, from 934 bytes to 1,340 bytes. Although this is a significant gain from its October top of 2,820, it is still a significant increase.
The decrease in block generation could be attributed to a decrease in new and active accounts. Both metrics have dropped in the last three days, with only 20 new accounts and 588 active accounts on November 9.
The Impact on Shiba Inu Prices
The Shiba Inu pricing has been declining in recent days, although this is not always related to the fall in new Shibarium blocks. Bitcoin has lost its footing over $37,000, and the apex cryptocurrency’s slide has spilled over into other assets in the industry.
Shiba Inu’s trade volume has increased by more than 40% in the last day. While this may indicate that there is profit-taking in the coin, which is to be expected, it also indicates that there is still a lot of interest in the meme coin.
SHIB is currently trading at $ 0.00000942 with the bulls solidly in charge of the price action. A recovery in the Bitcoin price will almost certainly result in the asset continuing to rise throughout the weekend.
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