On August 16, the highly expected layer-2 blockchain for Ethereum (ETH) was launched: Shibarium.
Amid high expectations for this new scaling solution that is being built within the Shiba Inu’s (SHIB) ecosystem, frustration came when the network was forced to shut down, and users’ funds were locked in a smart contract that was supposed to be a bridge between the Ethereum Network and Shibarium.
“After two days of testing and tweaking parameters to achieve ‘ready’ state Shibarium is now enhanced and optimized. As mentioned it is still in testing, but producing blocks.
Moreover, we have enabled a new monitoring system and additional fail-safes including rate limiting at the RPC level and auto server reset in case we get a huge level of traffic again.
We are almost ready to reopen to the public.”
– Shytoshi Kusama, Shibarium’s leading developer
However, Ethereum addresses continue to deposit ETH to the ‘bridge smart contract’, without further updates on whether these tokens could ever be redeemed to the Ethereum Network (Layer 1), as previous interactions retrieved a ‘failed’ status on the blockchain.
There are still over 1,010 ETH locked there, valued at $1.68 million by the time of publication.
SHIB price analysis
SHIB has been losing value since the failed launch, due to fear, uncertainty, and doubt (FUD) by investors who were expecting a positive outcome from Shibarium. The cryptocurrency registered over 21% losses in the last seven days, being exchanged for $0.000007977 by press time.
Shiba Inu, which was first created as a meme coin to overcome Dogecoin’s (DOGE) dominance as a meme asset, has also lost a few ranks by market cap, sitting in the 15th position according to CoinMarketCap’s index.
Both price and rank performance present a challenge for the ‘ShibArmy’ — working hard to regain the market’s trust in the Shibarium Network. If the developing team manages to restart Shibarium with a safe and positive outcome, this could help SHIB’s price. But further updates are still needed.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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