Shiba Inu’s much awaited Shibarium gets off to a rocky start
- The Shibarium scanner showed a stall in transactions as of this writing.
- SHIB and BONE have been on a decline as negative feedback persists.
On 16 August, the Shiba Inu [SHIB] community received a response regarding the question of “when Shibarium.” The eagerly anticipated Shibarium platform was finally introduced. This launch brought crucial utility to SHIB and BONE tokens, attempting to elevate them beyond meme coins. Nevertheless, the launch didn’t proceed as smoothly as some users had hoped, as few challenges surfaced.
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Introducing the Shiba Inu Shibarium
On 16 August, the Shiba Inu community was informed about the launch of Shibarium. This Ethereum Layer 2 (L2) solution was introduced several months after initiating the testnet. Upon its launch, the testnet garnered immense activity with millions of transactions and registered wallets. The high transaction volume and wallet count on the testnet indicated the platform’s popularity.
Also, the recently launched Shibarium has already begun witnessing wallet addresses and transactions. As of this writing, the number of wallets has surpassed 2,000, while over 190,000 blocks have been generated, along with more than 200 transactions.
Shibarium employs a novel consensus mechanism called proof-of-participation (PoP), which selects validators based on their holdings in the relevant cryptocurrency. This approach aims to avoid the computational expenses associated with proof-of-work systems.
The new L2 blockchain solution, Shibarium, is designed to interact seamlessly with the primary Ethereum Layer-1 blockchain. This interaction enhances scalability and cost-effectiveness in the transaction processes.
Concerns arise about the Shiba Inu L2
Examining the Shibarium scanner revealed a potentially challenging beginning for the Shiba Inu Layer 2 (L2) network. As of this writing, the most recent recorded transaction on the scanner occurred five hours ago. Before this observed transaction, there was a seven-hour gap in recorded transactions. This situation has given rise to various speculations within the community.
Numerous reports suggested that the Ethereum bridged onto the platform might have been irretrievably lost. A screenshot purportedly from Shytoshi Kusama, the lead developer, implied that the bridged ETH may be unrecoverable.
However, a post by Lucie, the Shiba Inu marketing strategist, disputed the authenticity of the screenshot, asserting that the developers were actively working to address the issue.
Despite these efforts, the ecosystem tokens, SHIB and BONE, continued to experience a decline in value, which the situation has done little to assuage.
SHIB and BONE decline further
Shibarium’s launch adversely affected Shiba Inu’s performance, as observed in the daily timeframe. The chart indicated a 7% drop in value on 16 August, coinciding with the Shibarium launch.
Additionally, at the time of writing, Shiba Inu had incurred an additional loss of more than 2%, extending its downward trend. Despite this decline, the Relative Strength Index (RSI) signaled only a slight bearish sentiment.
Likewise, BONE didn’t fare any better on the daily timeframe. It suffered a decline exceeding 5% on 16 August and continued its downward trajectory, experiencing a nearly 9% loss as of this writing. The RSI for BONE indicated proximity to the oversold zone due to this decline.
How much are 1,10,100 SHIBs worth today
Although this may not have been the favorable start anticipated by the Shiba Inu community, there remains potential for improvement. It’s worth noting that even the testnet launch encountered challenges initially before gaining momentum.
The crucial factor now lies in how the development team addresses the existing challenges in the upcoming days, as this will heavily influence the trajectory of Shibarium.