Shiba Inu's layer-2 network, Shibarium, saw daily transactions fall 58.8% in the first two days of May, a sharp drop that comes as developers implement significant network upgrades.
Data from the Shibariumscan block explorer shows daily transactions decreased to 1,240 on May 2 from 3,010 on April 30. The decline in network activity follows a recent server migration and a complete re-indexing of the chain, which the development team said was aimed at improving network capacity and data processing speed.
The short-term drop in transaction volume contrasts with the network's long-term growth trajectory. The team reported on April 27 that Shibarium had surpassed 1 billion total transactions since its launch. During that same week, the number of Shiba Inu (SHIB) wallet holders grew by 24,000, bringing the total to over 1.585 million, according to on-chain data from Etherscan.
Developers suggest the current low transaction figures may not reflect the network's true activity levels, which are expected to normalize as the new infrastructure settles. The upgrade is a precursor to integrating Fully Homomorphic Encryption (FHE) into Shibarium's rollup stack, a move intended to enhance on-chain privacy and security. While the transaction dip raises questions about user engagement, the underlying growth in wallets and upcoming technological enhancements suggest a potential rebound.
This article is for informational purposes only and does not constitute investment advice.
