- The Shibarium scanner showed a stagnation in transactions at the time of writing.
- SHIB and BONE have fallen into disrepair as the negative feedback continues.
On August 16, the Shiba Inu [SHIB] community received a response regarding the question “when Shibarium.” The highly anticipated Shibarium platform was finally introduced. This launch brought SHIB and BONE tokens critically and tried to elevate them beyond meme coins. Nevertheless, the launch did not go as smoothly as some users had hoped, as few challenges surfaced.
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Introducing the Shiba Inu Shibarium
On August 16, the Shiba Inu community was informed of the launch of Shibarium. This Ethereum Layer 2 (L2) solution was introduced a few months after the launch of the testnet. At launch, the testnet garnered massive activity with millions of transactions and wallets registered. The high transaction volume and high number of wallets on the testnet indicated the popularity of the platform.
Also, the recently launched Shibarium has already started observing wallet addresses and transactions. At the time of writing, the number of wallets has passed 2,000, while more than 190,000 blocks have been generated along with more than 200 transactions.
Shibarium uses a new consensus mechanism called proof-of-participation (PoP), which selects validators based on their holdings in the relevant cryptocurrency. This approach is designed to avoid the computational costs associated with proof-of-work systems.
The new L2 blockchain solution, Shibarium, is designed to work seamlessly with the primary Ethereum Layer-1 blockchain. This interaction improves scalability and cost-effectiveness in the transaction processes.
Concerns arise about the Shiba Inu L2
Exploring the Shibarium scanner revealed a potentially challenging beginning for the Shiba Inu Layer 2 (L2) network. At the time of writing, the most recently recorded transaction on the scanner took place five hours ago. Before this observed transaction, there was a seven-hour gap in recorded transactions. This situation has given rise to several speculations within the community.
Numerous reports suggested that the Ethereum bridged on the platform may have been irretrievably lost. A screenshot from Shytoshi Kusama, the lead developer, suggested that the bridged ETH may be unrecoverable.
But a message from LucieShiba Inu’s marketing strategist, disputed the authenticity of the screenshot, claiming that the developers were actively working to address the issue.
Despite these efforts, the ecosystem tokens, SHIB and BONE, continued to fall in value, doing little to help the situation.
SHIB and BONE continue to decrease
The launch of Shibarium had a negative impact on Shiba Inu’s performance as observed in the daily time frame. The chart indicated a 7% drop in value on August 16, coinciding with the launch of Shibarium.
In addition, Shiba Inu had an additional loss of over 2% at the time of writing, extending the downtrend. Despite this drop, the Relative Strength Index (RSI) signaled only mild bearish sentiment.
Source: TradingView
Similarly, BONE fared no better on the daily time frame. It suffered a fall of more than 5% on August 16 and continued its downward trajectory, losing almost 9% at the time of writing. The RSI for BONE pointed to the proximity of the oversold zone as a result of this decline.
Source: TradingView
How much are 1,10,100 SHIBs worth today?
While this may not have been the auspicious start the Shiba Inu community was expecting, there remains room for improvement. It’s worth noting that even the testnet launch initially ran into challenges before gaining momentum.
The crucial factor now lies in how the development team handles the existing challenges in the coming days, as this will greatly affect Shibarium’s trajectory.