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SHIB Price Dumps on Shibarium Launch, Rumors of $1.7M Lost on Layer 2

Published August 17, 2023 12:14 PM
Teuta Franjkovic
Published August 17, 2023 12:14 PM
Key Takeaways
  • Only 24 hours after its release, the Shibarium launch has already faced big obstacles
  • The Shibarium now has ETH valued at about $2 million locked
  • Following this, the value of Shiba Inu ecosystem tokens has been significantly reduced

One of the most anticipated cryptocurrency projects of 2023 is Shibarium, an Ethereum layer 2 solution that is anticipated to give the Shiba Inu (SHIB) ecosystem a faster network performance and lower transaction costs.

Shiba Inu developers officially revealed on August 16 that the Shibarium mainnet is operational after months of beta testing. Contrary to expectations, SHIB, Shiba Inu’s most recognizable token, seems to have taken a drop as a result of this development.

Only 24 hours after its inception, Shiba Inu’s Shibarium has encountered a big obstacle for the cryptocurrency community. The Layer 2 solution for Shiba Inu, Shibarium, is currently facing transaction operations that are in a pending status, Chinese reporter Colin Wu noted  in a recent tweet.

Following the information provided, Shibarium now contains ETH valued at close to $2 million.

The crypto world was particularly shocked by the discovery because during its testing phase, Shibarium had accomplished an outstanding feat. Wu also emphasized  that during Shibarium’s testnet period, fans of the Shiba Inu breed created over 21 million wallet addresses.

Users are encouraged to use caution and temporarily avoid using Shibarium in light of the current circumstances.

Deciphering SHIB’s Loss

Renowned crypto investigator ZachXBT also revealed further information about the Shibarium incident. ZachXBT discovered  that the Shibarium cross-chain bridge now holds 954 Ethereum (ETH) tokens with a market value of almost $1.7 million.

SHIB’s loss following the launch of Shibarium is now explained by a technical problem with the eagerly anticipated initiative. A number of posts on X claim that the Shibarium bridge is currently holding ETH valued more than $1.7 million. Investors have been extremely alarmed by this development.

Additionally, based on a post spreading on social media that purports to be from Shiba Inu developer Shytoshi Kusama, it looks that these assets may not be recoverable.

Shibarium: Could It Destroy the Shiba Inu Ecosystem?

Shibarium was created to help the many Shiba Inu ecosystem projects, including the Shib Metaverse, Shibaswap DEX, and the Shiboshi NFT Project, run more quickly and with lower transaction fees for users.

Additionally, every Shibarium transaction must result in a SHIB burn, which acts as a deflationary mechanism for the token. It was widely anticipated that the layer 2 solution might result in a stronger adoption of SHIB and other Shiba Inu local tokens, which in turn could enhance market prices, due to these suggested features of the Shibarium project.

This prognosis was supported by a number of encouraging indicators, including the SHIB token recording notable gains in response to any updates on Shibarium’s development during the previous few months.

Shibarium really had 21 million wallets established  when it began on Wednesday, indicating a significant amount of user interest. Shiba Inu investors are worried about whether the Shibarium project would succeed in light of the latest Ethereum bridge problem.

Even so, it might still be too early to declare the initiative a failure, given that the Shiba Inu team has not yet released an official statement addressing this issue.

According to CoinMarketCap , SHIB has fallen 8.5% in the last 24 hours and is currently trading at $0.000009001 at the time of writing. The token’s daily trading volume is at $423.5 million.

At the time of writing, the Shib Mainnet RPC, accessible via https://www.shibrpc.com , was still down.
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