Shiba Inu: Why Shibarium’s launch failed to turn things around
- Shibarium witnessed a massive number of transactions after its launch.
- SHIB, BONE, and LEASH have not done well since Shibarium’s launch.
After months of waiting, Shiba Inu’s [SHIB] much-hyped Shibarium was launched on 16 August. However, the launch did not go as expected, as SHIB’s price dropped sharply. In fact, Shibarium’s hype was not reflected on the memecoin’s chart even a day after its launch.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
Shibarium launch did not go as planned
The Ethereum [ETH] Layer-2 (L2) solution was unveiled following the testnet’s launch several months ago. Shibarium’s USP lies in the fact that it uses a new consensus mechanism called Proof-of-Participation (PoP), which selects validators based on their cryptocurrency holdings.
However, soon after its launch, rumors started circulating regarding issues with the bridge, causing technical difficulties. But the team soon posted a blog, putting an end to the rumors. It affirmed that the issues were a result of the massive influx of transactions and users around the time when Shibarium went live.
However, the increased number of transactions did not affect Shiba Inu’s price. Over the last week, the token’s price dropped by more than 15%. In fact, in just the last 24 hours, SHIB’s value plummeted by over 7%.
At press time, it was trading at $0.000008434 with a market capitalization of more than $4 billion.
As per CryptoQuant, SHIB’s net deposits on exchanges were high compared to the last seven-day average, suggesting it was under selling pressure. Moreover, Shiba Inu’s trading volume increased while its price dropped.
However, whales were still interested in SHIB at press time, as it remained the most-traded token among the top 100 ETH whales in the last 24 hours.
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The Shiba Inu ecosystem is underperforming
Tokens like Bone ShibaSwap [BONE] and Doge Killer [LEASH] have suffered since the launch of Shibarium as well. As per CoinMarketCap, BONE’s price declined by over 27% last week. LEASH’s fate was also similar, as its price plummeted by over 20%.
The launch did help boost BONE’s popularity, however, as evident from the rise in its social volume. Regardless, the dip in BONE’s weighted sentiment of late revealed that negative sentiment around the token dominated the market.