Shibarium, an Ethereum Layer 2 network developed by Shiba Inu, has experienced a significant decline in daily transactions, plummeting by 99%.

The end of 2023 and the beginning of 2024 saw increased adoption of the Shibarium network, resulting in a surge in daily transactions to 7 million in December. However, by 2024, this figure had dropped to one million daily.

The notable downward trend began on March 10, with daily transactions hitting a record low of 800,000. By March 16, the network had slightly rebounded to just over one million transactions, possibly influenced by the Bitcoin crash, which saw prices drop from $73,000 to $61,000, affecting altcoins like Shiba Inu.

Investors have adopted a cautious approach, adopting a wait-and-see attitude. A potential recovery could lead to increased acceptance of the Layer 2 network. However, facing competition from Solana and Ethereum, the network may encounter significant challenges in retaining active users.

The negative situation is expected to persist until the end of March, reminiscent of a similar scenario in November 2023. Nevertheless, hopeful investors remain optimistic, anticipating potential improvements in the near future.