What Shibarium’s low network activity means for BONE

• The last two weeks were marked by a decline in Shibarium’s network activity.
• Bulls shunned BONE as selling activity intensified.

Shiba Inu’s [SHIB] Layer 2 (L2) network Shibarium has witnessed a reduction in its usage in the last two weeks. An on-chain assessment of the L2’s performance revealed a decline in network activity since the 25th of October.

Shibarium sees decline

Firstly, the daily count of active addresses completing transactions on Shibarium has trended downward in the last 14 days.

As of 7th November, active accounts on the network totaled 626, data retrieved from Shibariumscan showed. This represented a 54% decline from the 1367 addresses recorded on 25th October.

Source: Shibariumscan

Also, new demand for the network has plummeted. Information from the same data provider showed that the count of new addresses created daily on Shibarium has shrunk by 92% in the past two weeks.

This has occurred despite the launch of Shiba Inu’s Shib Name Service” (SNS) – a decentralized naming service that allows users to create human-readable addresses for their Shibarium wallets – on the network on 30th October. 

As expected, the decline in new address count on the chain has occasioned a fall in the number of new transactions completed on Shibarium daily.

As of 7th November, the number of new transactions executed on the L2 network was 9,926. This was an 84% decline from the 62,927 new transactions completed on 25th October.

Due to the steady decline in daily transactions on Shibarium, the average cost of executing the same has decreased in the last two weeks.

At 0.001 BONE as of 7 November, the average transaction fee on Shibarium has fallen by 67%. 

Source: Shibariumscan

BONE fails to record traction

Amid the general rally in the crypto market in the last month, meme coin BONE has failed to witness any significant price rally. After peaking at $0.82 on 24th October, the alt’s value has since dropped by almost 15%.

According to data from CoinMarketCap, BONE exchanged hands at $0.71 at press time. 

On the token’s spot market, participants have mostly distributed their BONE holdings. According to readings from the alt’s momentum indicators observed on a 24-hour chart, selling pressure significantly outpaces accumulation.

Read Shiba Inu’s [SHIB] Price Prediction 2023-24

At press time, BONE’s Relative Strength Index (RSI) was 40.08, while its Money Flow Index (MFI) was 40.74.

Moreover, the token’s Chaikin Money Flow (CMF) returned a negative value of -0.05 at press time; signaling increased liquidity exit from the BONE market as selling activity picks up pace. 

Source: BONE/USDT on TradingView