In a recent development, Shiba Inu (SHIB) has hit a record number of addresses, crossing the 4 million threshold. This landmark event signals a noteworthy expansion for the popular memecoin, marking a historic moment in its journey. Despite the fanfare surrounding the increase in addresses, a closer analysis reveals a concerning decline in network activity.

Data from Glassnode highlights this achievement, illustrating a steady climb in the total number of addresses over recent months. The surge became particularly evident in early March when the count escalated from 3.8 million to 4 million addresses. This growth signifies the first occasion Shiba Inu has amassed such a vast number of addresses, suggesting a growing interest in the cryptocurrency.

Although there’s a visible uptick in the number of active addresses from previous months, these figures have seen a significant drop from their peak at the end of February. The count of active addresses, which once soared to approximately 49,500, has since decreased to around 5,400, indicating a fall in ongoing network participation.

The decrease in the number of active addresses on the Shiba Inu network, in comparison to the total address count, indicates that the network may not be used to its full potential. Similarly, the creation of new addresses on the network shows a similar trend, with a significant peak on March 5 followed by a sharp decline.

Furthermore, Shiba Inu’s market performance has mirrored this trend of fluctuating activity levels. Following a spike in its value coinciding with the peak in new and active addresses, the memecoin’s price has since entered a consolidation phase. The trading volume, exceeding $527 million, suggests stability in market transactions but lacks evidence of significant momentum or interest spikes. However, SHIB is trading at $0.00002742, marking a marginal increase of 0.02% in the last 24 hours.

Shiba Inu has recently achieved a new milestone in terms of address count, which suggests that there is an increased interest or adoption of the cryptocurrency. However, a closer examination of the network activity and market dynamics reveals a decline in engagement and a state of equilibrium in trading activity. This combination of indicators signals that stakeholders may need to reconsider their strategies to encourage more active participation and growth within the Shiba Inu ecosystem.