Shiba Inu has largely stayed out of the spotlight in recent weeks, keeping a low profile and making no major announcements. However, the team has broken its silence with a fresh update concerning its layer-2 scaling solution, Shibarium.

Despite the news, SHIB remains in red territory on both daily and weekly timeframes, and certain factors suggest a deeper decline might be on the way.

What’s New for Shibarium?

Shiba Inu revealed on its official X account that it has implemented “a small but useful” update for Shibarium. Specifically, it refreshed its RPC listing in the Ethereum-lists/chains registry, and Chainlist now has updated connection details.

Several X users applauded the move, saying it has made access to the protocol more convenient. Many others described the update as insignificant and even called the layer-2 scaling solution a scam.

Their frustration may stem from Shibarium’s declining activity. Following an exploit last year, daily transactions processed on the network have fallen to the low thousands and occasionally even the hundreds, highlighting weak user engagement and potentially eroding investor confidence. Recall that prior to the attack, the figure stood in the millions.

SHIB Price Outlook

While Shiba Inu remains the second-largest meme coin, its valuation has slipped by 6% over the last week and now trades at around $0.000005196 (according to CoinGecko). Its market capitalization stands at just north of $3 billion, making it the 33rd-largest cryptocurrency.

Meanwhile, SHIB’s burning program suggests that the bears may remain in control. Data shows that the burn rate has declined by nearly 90% over the past month, meaning a negligible amount of tokens has been sent to a null address.

The mechanism’s ultimate goal is to reduce the meme coin’s overall supply and potentially boost its value through scarcity. However, little to no activity on that front poses a serious obstacle to that effort.

Shiba Inu’s seasonal performance is also worth monitoring. September has been a predominantly poor month for the token, with its price ending the period in red three out of five times. We have approximately two weeks left to see whether the green and red September will balance out or bears will strengthen their advantage.

Source: CryptoPotato