Why Shimmer Activity and Price Have Fallen Deeply

Around 18 months after its launch, Shimmer (SMR) is faced with unpleasant truths: the price curve has fallen deeply and little is happening in the network. The IOTA side project Shimmer was unable to meet great expectations.

It has become quiet about Shimmer (SMR) : With prices around $0.016, SMR’s price curve is only just above the all-time low and public interest in Shimmer seems to be close to zero. In September 2022, a year and a half ago, things were completely different. At that time there was a certain euphoria at IOTA because Shimmer had been successfully launched as a “groundbreaking” side project. SMR’s all-time high of $0.17 also dates back to that time – today 90 percent away from current prices.

Other indicators are useful in assessing the situation. Only around 30 new accounts are created for Shimmer every day – which speaks more for stagnation than for growth. And with a good 600 active accounts every day, the Shimmer network is simply sad. A small group of people interested in SMR meets there and has never been able to attract new members in the long term. Shimmer recently tried to generate new interest in its ecosystem with a $1 million campaign .

But this airdrop only had short-term effects. Shimmer should and wanted to gain a foothold in the decentralized finance (DeFi) sector. With the activation of the Ethereum Virtual Machine (EVM) in the network, Shimmer created the conditions for DeFi in the IOTA ecosystem in September 2023, about half a year ago.

The data from DeFiLlama is clear here: When the airdrop campaign for SMR was advertised, people were happy to see that the capital invested in DeFi under Shimmer rose to a high of over $13 million in February. Now that the promotion is over, TVL for Shimmer has fallen back to under $5 million – the one-off effect has completely evaporated.

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Who is to blame for Shimmer’s demise?

Meanwhile, the typical game of blame is already beginning in the community. IOTA boss Dominik Schiener is no longer raving about Shimmer – although he personally pushed and promoted the project. But a few weeks ago, Schiener clearly distanced himself from SMR with a harsh verdict (“A token that is owned by the community does not work”), which the community found to be damaging to its reputation. The conflict then continued at referendums on Shimmer and IOTA’s self-governance.

Of course, no one officially wants to pull the plug on Shimmer completely yet. But since the BitForex trading platform was discontinued in February, SMR can only be traded internationally on a single classic crypto exchange and even the use of a few thousand US dollars has a direct influence on the price curve. It is also clear: If, as expected, the EVM itself becomes usable at IOTA very soon , there is actually no longer any sustainable reason to bring money into Shimmer.

Conclusion: Prospects for Shimmer vary between bleak and swan song

An interim review of Shimmer from the summer of 2023, also had little optimism to offer. There is now more data on SMR, as listed above – and almost everything has gotten worse. A few optimists believe that SMR still has a chance of a turnaround.

Their argument: Shimmer, as a monetary testnet, should now provide the basis for switching IOTA to a decentralized network (“Coordicide”). But it’s not just the experiences with DeFi under Shimmer for the IOTA ecosystem that suggest that wishful thinking is replacing the sense of reality here too.

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(Featured image by sergeitokmakov via Pixabay)

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